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🎯 After You Sell: Making Your Lump Sum Last

90-day plan and strategies to avoid common pitfalls

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The Critical First 90 Days

Studies show 70% of windfall recipients lose it within 5 years. Decisions in first 90 days determine whether you're in successful 30% or regretful 70%.

⚠️ The 90-Day Rule

Do NOT make major purchases for 90 days. Give yourself time to plan. Rushed decisions = regret.

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Immediate Actions (Week 1)

1. Deposit in secure account

High-yield savings (4-5% APY), NOT checking

2. Tell almost no one

More people know = more requests for money

3. Pay off high-interest debt ONLY

Credit cards 15%+. Hold mortgages until full plan

4. Create 6-month emergency fund

Set aside in separate savings for protection

5. Schedule financial advisor

Fee-only CFP ($2k-$5k) and CPA ($500-$2k)

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Smart Money Allocation

Proven 20/30/50 framework:

🚨 Immediate (0-1 year)

20-30%

Uses: High-interest debt, emergency fund, immediate expenses, advisor fees

Where: High-yield savings 4-5%

📊 Medium-Term (1-5 years)

20-30%

Uses: Home down payment, vehicle, education, business, improvements

Where: CDs, bonds, conservative investments

🌱 Long-Term (5+ years)

40-50%

Uses: Retirement, college fund, real estate, stock portfolio, wealth building

Where: IRAs, index funds, diversified investments

7 Biggest Mistakes to Avoid

Buying depreciating assets

New cars, boats lose value instantly. Wait 90 days.

Lending to friends/family

80% never repaid. Ruins relationships and finances.

Quitting job without plan

Even $100k runs out faster than expected.

Ignoring taxes

Lump sums can affect SSI, Medicaid. Consult CPA.

Investing in unknowns

Scammers target windfall recipients. Stick to proven investments.

Lifestyle inflation

Upgrading everything depletes money fast.

Not having financial plan

70% spend it within 5 years without plan.

Related Resources

Maximize Your Offer

12 strategies to get best price before you sell.

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Common Mistakes

Avoid costly errors when selling your settlement.

Learn More

After receiving your lump sum from selling structured settlement payments, careful financial planning helps ensure your funds last and support your long-term goals. Creating a budget, paying off high-interest debt, establishing emergency savings, and considering investments are key steps to making the most of your settlement funds.

Smarter Payouts provides resources and guidance to help you plan for life after selling your settlement, though we recommend consulting with a financial advisor for personalized advice tailored to your specific situation and goals.