Dr. Jim Dahle fields a question from a reader anticipating a large windfall. It’s a common question, and the answer often depends on your current financial situation.
Obviously, you will have different needs if you are in intern with $300,000 in debt versus a financially independent physician with $3,000,000 to your name.
This is money, perhaps $10,000 to $200,000, that you weren’t expecting. I’d just take this money and divide it among my goals in whatever manner I see fit, trying to minimize interest, decrease taxes, and maximize returns.
The best thing to do upon getting this money is nothing, at least for a period of a few months or a year. Give it some time and really think about what you want to do with your life.
This is when you get a windfall, such as lottery winnings, which if invested wisely, is more money than you would ever spend given your current lifestyle.