Well none of us get a windfall everyday…but what should we do if we get one?

There is no clear answer to a question like ‘what to do with a windfall’ – because there is no one answer which will fit all of us.

Let us say a person gets a windfall – let us say Rs. 10 lakhs – and all the persons who receive it have a net worth of Rs. 2-3 crores.

Thus this ‘windfall’ is ONLY about 3-5% of their net-worth. In such a case the chances are the receiver is not so excited, but surely very happy.

First you should put it in a liquid fund. This is because you should not do anything on the day you are excited. Just relax.

Then you have the following options:

1. If you have debt – and that too personal loan, car loan, vacation loan, and a housing loan, you should down pay your loans. And how you repay will be according to the sequence of their COST, not SIZE. Many people I know repay based on size. I had a Rs. 88 lakhs home loan, I got a Rs. 8 lakh windfall, so I repaid Rs. 8 Lakhs….this is WRONG. Repay the MOST expensive loan first….Simple? Well do it.

2. Assuming you have no debt and you are doing SIP in a sensibly well thought out schemes – just divide the whole amount into all the schemes. Equally or on a weighted basis as your plan.

3. Just put it in a pension plan and lock it up: This is also a sensible thing to do – making your older age a little more comfortable.

4. Put it in a plan for your kids education – thus allowing them to participate in your windfall gain!

These are the investment plans that one can think of……of course the best thing to do is like this:

Spend 1/3rd on something you / your loved one always wanted – could be a vacation or a thing.

Spend 1/3rd on replacing some asset which you had been postponing

Invest 1/3rd the way I have enumerated above.


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  1. Subra sir

    This is something i am well planned of long time back.

    3 bank a/c to deal the the below saperately.

    50% net is give away for sure – Charity, siblings, co-workers, friends in need….

    25% if for wife & kids & securing your present
    25% is just for you to invest for future.

    God i am rady & waiting… 🙂

  2. Thank you.
    The itchy risk taker in me has been nagging me– house loan is 20 L @10.75% plus I get a tax break.. why not put that windfall surplus 20 L in the usual HDFC/ FT/ Pru I?

    Have not been able to resolve this, so haven’t claimed the money yet.

  3. @shinu .that is mental accounting. your money is your money is your money is your money. irrespective of where it comes from.separating it into bank accounts is mental accounting -misses a portfoilio-goal oriented approach

  4. Windfalls do not come often. Best way is to use the rsources to make your finantial position stronger. Do not allow your costs to rise. The money should be considered as a one time lotary win.
    I have seen people ruin themselves after they take a VRS from their long term employer and then spend the money on whims of their children and life partner.

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