In This Chapter
- Understanding the challenges of investing lump sums
- Striking a balance with your income tax
- Putting severance pay to work for you
- Stock options, settlements, and inheritances
- Using dollar-cost averaging to reduce risk and increase your wealth
- Knowing enough to ask for advice
- What to do with retirement lump sums?
Saving and investing money normally is done in a systematic manner, a little bit at a time. You contribute some of every paycheck to your 401(k). A bit more goes into your daughter’s college fund. Still another piece goes toward your emergency fund. Little by little, you build up the accounts.
There’s a good chance, however, that at one point of your life or another, you’ll receive a significant amount ...