Retirement » 8 Smart Ways To Spend A Hefty WindfallThe 3-pocket approach2 of 10Karen Altfest, executive vice president of L.J. Altfest & Co., a financial planning firm in New York, says to concentrate on three strategies."What you're going to do is think of it as pockets," she says. "You've got three pockets, divide the money in thirds. Take the first pocket and use it to pay down anything that you think should be paid down: your child's education, your debt, your mortgage. Get rid of something and make your life a little easier."Then, save for something in your future -- your next car, your vacation, your old age. Third is that you're a good person. Do something nice for yourself now. A vacation or something special you've always wanted," Altfest says.
Retirement » 8 Smart Ways To Spend A Hefty Windfall
Karen Altfest, executive vice president of L.J. Altfest & Co., a financial planning firm in New York, says to concentrate on three strategies.
"What you're going to do is think of it as pockets," she says. "You've got three pockets, divide the money in thirds. Take the first pocket and use it to pay down anything that you think should be paid down: your child's education, your debt, your mortgage. Get rid of something and make your life a little easier.
"Then, save for something in your future -- your next car, your vacation, your old age. Third is that you're a good person. Do something nice for yourself now. A vacation or something special you've always wanted," Altfest says.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.