MyMoney Online

How to make the most of a financial windfall (tax refund, bonus, gift, etc.)

(Click here for all the latest personal finance articles and tips from our resident experts.)

How do you make the most of an unexpected (or expected) windfall such as a bonus, inheritance or (we can dream, can’t we?) lottery jackpot?

About 70 percent of people who win large amounts in the lottery have nothing to show for it after seven years. The same can be said of people who received other windfalls such as inheritances or financial gifts.

How to use your windfall to live the life you dream of

If you’re lucky enough to have received such a windfall (or you if you haven’t but you play the lotto and you’re hopeful you will); how can you make the most of it? How do you ensure you use it to live the life you’ve always dreamed of?

“You’ve got to think like a wealthy person,” says Certified Financial Planner Paul Roelofse. “Wealthy people don’t pass the time thinking how they should spend. They look at how they should guard their capital and grow it, not only for themselves but for generations to come.”

So, how can we guard and grow a windfall that comes our way?

“I would suggest, before you do anything, take a few days off and go away to think about what just happened,” suggests Roelofse. “Think hard about what you’ve got. Let it really sink in.”

Then, when you’ve taken a deep breath and gathered your thoughts, get professional help. “This is what wealthy people do,” says Roelofse. “They have financial planners and advisors.”

How to find a good, honest financial advisor

Start your search for honest advice at the Financial Planning Institute (FPI). The FPI’s website has a function whereby you can search for and browse the CVs of accredited advisors in your area.

All these advisors are “Certified Financial Planners” – the gold standard when it comes to certification of financial advisors. “This is an international qualification,” assures Roelofse. “In addition, if anything goes wrong, you’ve got recourse with the institution as well as with the Financial Services Board (FSB).”

(Click here for all the latest personal finance articles and tips from our resident experts.)

Listen to the Soundcloud clip for more detail.


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Naspers is expensive, but geared for growth. Ashburton Investments’ Nick Crail on why you should just be brave and buy its shares.

Why medical aid is woefully inadequate (and how affordable gap cover helps)

Why medical aid is woefully inadequate (and how affordable gap cover helps)

It may come as a shock (but it’s all there in the small print); medical schemes do not fully cover you when you’re hospitalised.

Why the rand is getting stronger (and how much stronger it can get)

Why the rand is getting stronger (and how much stronger it can get)

Michael Keenan, Currency Strategist at Barclays Africa, discusses our volatile currency.

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! On 1 March 2015 government introduces tax free savings accounts. Financial planner Claude Hannah explains…

13 random thoughts on living a happier, less materialistic life

13 random thoughts on living a happier, less materialistic life

702/Capetalk's Kabous le Roux shares 13 thoughts he has on being less materialistic and living the good life right here right now.

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

How much you should save for retirement

How much you should save for retirement

You know you should save for retirement, but do you know how much? Financial planner Claude Hannah breaks it down in simple terms.

Popular articles
 In the market for a 2nd hand car? Here are some tips to buy it on a budget!

In the market for a 2nd hand car? Here are some tips to buy it on a budget!

In the car feature, our very own car guy Tumelo Maketekete shares some tips and tricks to buying a car on a R100 000 budget.

Signs your jealousy may be getting unhealthy

Signs your jealousy may be getting unhealthy

Managing jealousy has become increasingly important, particularly with the evolving structure of modern relationships says Dr Eve.

Vigilante mob attacks alleged criminals in Daveyton

Vigilante mob attacks alleged criminals in Daveyton

Tensions are rife in the East Joburg township as the community attacked and killed criminals.

Naked Scientist: Why is it that women live longer than men?

Naked Scientist: Why is it that women live longer than men?

Naked Scientist Chris Smith says there is a range of reasons why this may be true.

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Swartz says he would have done anything to get the R1 million prize money.

'There is no way Magnus Malan could've done the things he is accused of'

'There is no way Magnus Malan could've done the things he is accused of'

Former police minister Adriaan Vlok has rejected accusations that former minister Malan was at the centre of a paedophile ring.