An inheritance, a bonus, selling your business or winning the lottery: receiving a windfall lump sum can be life-changing.

Moneycube has some simple rules to get the best out of a cash windfall.

1. Focus on wealth preservation

Becoming wealthy is about growing your assets.  Staying wealthy is about preserving them.

That means minimising your risk by diversifying your investments widely, and walking away from higher returns that present too much risk.

It also means figuring out a sustainable way to manage your investments, including long-term tax planning.

2. Clear down debt

Inheriting a lump sum is a great opportunity to remove some or all of your debt burden immediately – especially expensive debt such as overdrafts and credit cards.

No investment will give you a guaranteed return which beats the savings from paying off debt.

3. Take time, and take advice

Avoid rash decisions if you’ve come into a meaningful sum.  Take advice from a reputable financial provider… but avoid the sharks who may circle at the whiff of money to be extracted.

That said, decisions will need to be made.  Staying 100% in cash is not the right answer for most people who have come into a decent sum of money.  Put simply, there are many more productive ways to get your money working for you.

A good advisor will devise a tailored plan that fits with your circumstances.

4. Keep it safe

While you are making your plans, put your money somewhere safe.

Remember that the first €100,000 of cash in Irish banks is State-guaranteed.  Beyond this amount, it may be worth spreading among numerous financial providers, or even State Savings.

5. Consider giving

For some people, a windfall lump sum is an opportunity to be generous.  At its simplest, in Ireland you can give €3,000 away to unlimited numbers of people each year with no tax consequences.

For larger sums, now may be the time for detailed inheritance tax planning to ensure future windfalls for the people you’d like to benefit in the long term.


Get started with Moneycube today

By investing €400 a month you could save €27,900 in 5 years

Using our "Picture your money" tool, you can find out how your money could work for you.

Start now It only takes a minute to get started

Note: This is an initial indication to help you picture your money. Remember that with investments it is not possible to know for certain what returns you will achieve. Please note the investment warnings at the bottom of the page. This is the approximate before-tax return on an investment which grew at 6% over 5 years.


Should you be doing more with your money? Our free ebook guides you through your investment options and shows you how to avoid the investing pitfalls that could derail your finances.



How to get started investing in Ireland