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CREATE A TIMELINE When you’re sorting out what to do with a windfall, Boudreaux recommends breaking your plan into three parts: now, soon and later. During the “now” period, figure out what

you really have to work with, including whether any of the windfall is subject to taxes. Inheritances, for example, can be taxed in six states. Life insurance proceeds, except for interest,

generally aren’t taxed, gains on a home might be, and lottery winnings are. Once you determine your net dollar amount, consider shoring up your financial health by paying off high-rate

credit card balances and bulking up your emergency fund. In the “soon” stage, it’s time to develop a full financial plan for the money, including an investment strategy and management of

your other debt, such as the mortgage on your home. (Don’t race to pay off that mortgage in the “now” phase, advises Columbus, Ohio, financial planner Jill Gianola. “Emotionally, it feels

good,” she adds. “But from a purely financial point of view, you’re better off not paying off your mortgage, and investing and letting money grow.”) And the “later” part of the process?

That’s deciding on big moves like buying a vacation home, making large gifts to charity or family, and updating your estate plan. “Give yourself time to ensure you’re happy with your

decisions before you do anything,” McCoy says. PREPARE FOR PLEAS A windfall may bring friends or family members out of the woodwork, hat in hand, but planning for your own financial security

should be your priority. If someone asks for financial help that you’d rather not give, McCoy suggests this defense: First say that you’ll think about it and promise to talk later, then

practice your assertiveness skills to stay calm during the upcoming conversation. “If a person truly loves you,” she says, “they should be able to accept no for an answer.” If you’re

rejecting a request, articulate your reasons; people like hearing the “because,” McCoy says. And don’t feel guilty about not helping out. “Whatever way you received the money, it is yours to

decide what happens to it,” she says. If you decide you do want to help out, you may find that it’s rewarding. Studies have found that spending money on other people makes us happier than

spending money on ourselves. BUILD ON WHAT YOU HAVE If you already have a plan in place for retirement and other goals, don’t scrap it. Instead, see how this newfound money fits in. “If you

felt you never could retire, an inheritance can make it possible,” Boudreaux says. “Or it might accelerate the timeline or let you move into an encore career.”A cash infusion can also fund

smart tweaks to your plan, such as letting you cover the taxes on converting a traditional IRA to a fully tax-free Roth IRA or put off claiming Social Security. “Delaying from age 67 to 70

means a 24 percent increase in benefits for the rest of your life,” Gianola says.  GO SLOW WITH THE MARKET