Windfalls and other liquidity events come in many forms. And, like most people, you’ll probably receive one or more of these, such as:

• An inheritance or life insurance payments
• A divorce settlement
• The sale of appreciated stocks, artwork, collectibles or a home
• Exercising stock options or the vesting of company stock
• Receiving deferred compensation
• Remuneration for winning or settling a lawsuit against another person or company

Whether it’s money or stock you’re expecting or a surprise gift of cash, you’ll want to resist the temptation to spend the entire windfall on extravagances. For one, they won’t protect your long-term financial security. And more importantly, you may receive a hefty federal or state tax bill.

That’s why savvy families and individuals work with a fee-only fiduciary financial advisor, in partnership with your tax advisor, to ensure that you can enjoy some of your windfall today while investing some of it for financial security tomorrow.