How to Manage Your Liquidity Event Windfall

You’ve hit the company jackpot, your employer just went through an IPO or acquisition, and you owned a piece of the pie. It’s an exciting time, and for many, it's the first time they’ve had access to serious, life-changing wealth.

But now what?

Should you invest it all?
Spend it?
Buy a house?
Take a sabbatical?
Start your own business?

The possibilities are endless, which can make figuring out the “right” next step feel overwhelming.

Here’s the truth: there isn’t one “right” answer.

What’s right for you might be completely wrong for your co-worker who just went through the same event. Personal finance is exactly that—personal. After a windfall, you'll have a flood of options. But not all of them will move you closer to the life you actually want.

That’s where life planning comes in. It’s the tool that helps you cut through the noise, get clear on your goals, and use your money to support a life that feels meaningful. Your Authentic Life.

Yes, I could give you some standard financial information:

  • Save the majority of your windfall

  • Pay off high-interest debt

  • Keep some cash set aside for emergencies and short-term needs

  • Invest the rest in a diversified portfolio aligned with your risk tolerance

And while that’s all technically good information, it ignores the most important question:

What do you want your life to look like now that you have more freedom and flexibility?

That’s why, after a liquidity event, it’s so important to pause and take a breath. Don’t rush into financial decisions, even the seemingly responsible ones, before giving yourself space to think about what’s possible.

You may realize that paying off your mortgage doesn’t align with your bigger goals. Maybe keeping liquidity gives you the space to take a sabbatical, explore a new career, or spend more time with your family. Maybe you don’t want to buy a house just yet because you want to travel or move to a different city.

There’s nothing wrong with being financially responsible, but if you make “optimal” financial choices without aligning them to your life, you risk reducing the freedom and flexibility that you were dreaming about before the windfall.

So, whether you're preparing for a liquidity event or celebrating one that just happened, give yourself permission to slow down. Define what freedom looks like for you. Then make decisions that support that vision.

Your windfall is an opportunity to start living the life you imagined long before the IPO or acquisition happened.

Let’s make sure it’s your Authentic Life.

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