Managing sudden wealth

Some of the information in this article may be out of date. We are currently in the process of updating our content to reflect FY26 details.

Picture this… you get the call you’ve been waiting for your whole life… the one where your numbers have come up and you take home that lottery win you’ve been dreaming of.

What’s next?

First Financial Principal James Wrigley outlines in a TikTok how, as a financial adviser, he’d spend a significant amount of sudden wealth.

Your own instant wealth may not be in the league of $120 million, but there are a few future-proofed ideas for you to consider for yourself when your numbers finally come up and you find yourself managing sudden wealth.

It’s fun to dream!

Sudden wealth syndrome is something most of us would like to suffer from in one capacity or another, but believe it or not, coming into money can be a curse if you don’t know how to manage it.

We’ve all heard the stories of lottery winners who’ve lost it all through money mismanagement.

The best way to avoid squandering sudden wealth is to obtain advice from a financial adviser at the outset.

So before you book that plane ticket to your dream destination, find a financial adviser to help you to make a sound plan to spend your money wisely and protect your future wealth.

Clearing your debt on your principal place of residence is always a good idea and is often the first thing many people do when they come into money.

Clearing your debts can be a great way to set yourself up for a more secure financial future.

In most situations, it’s best to pay off the debts that have the highest interest rates attached to them, first and foremost.

Depending on the amount of money you’ve come into, you may not be able to clear all your debts, but if not, it’s a great idea to talk to your financial adviser about the best debt payment plan to clear your debts in the right order.

Would you prefer a holiday home in the south of France or a super yacht to travel the deep blue?

Once you’ve taken care of your debts, it’s time to live a little!

Acquiring assets can be a method to preserve your lottery winnings over time and build a wealth portfolio for your family’s future.

Most recipients of large sums of money will choose to build a property portfolio and pursue other high-yield investments to celebrate their newfound riches.

For more information about understanding high-yield investment options, contact our team today.

You’ve paid off your debts and finally secured that penthouse somewhere in France, now what?

You could consider purchasing some gifts for friends and family or donating money to a good cause.

While gifts for others are non-refundable, some charity donations have tax benefits associated with them.

If there’s a cause close to your heart that you’ve always wanted to give your support to, coming into sudden wealth may see you realise this goal.

Our financial advisers can discuss setting up a private ancillary fund to make long-term investments in charities of your choice while still reaping the tax break benefits connected with this type of donation.

Ask us more about ancillary funds today.

Rich people don’t need to worry about super, right?

Wrong!

Superannuation is an excellent way to future-proof your wealth strategy and protect your financial future, and coming into money can be a good time to utilise non-concessional contributions.

Non-concessional contributions are after-tax contributions paid from your personal bank account into super.

Non-concessional contribution caps allow you to put a lump sum of up to $110,000 into superannuation and utilise the bring-forward rule and carry-forward rule.

If you are 75 or under and meet total super balance requirements, you can utilise the bring-forward rule, which allows you to bring-forward up to two additional years’ worth of the cap – meaning you can contribute up to $330,000 over three financial years at any time.

If you’d like to know more about how to make the most of your superannuation via non-concessional contributions, contact one of our superannuation specialists today.

You’ve cancelled your debts, had some fun, done some good and utilised the superannuation rules to your advantage. What’s next?

If you come into money, there is an opportunity to set up a family trust to distribute money across family beneficiaries.

When set up correctly, a family trust can assist to reduce taxes and protect the financial future of vulnerable beneficiaries.

In the most part, family trust structures can be flexible and easily moulded to your financial goals and assets.

For more information about the ins and outs of managing sudden wealth, contact our experienced financial advisers.

May the odds be in your favour!