What Will You Do With Your Windfall or Bonus?
While many of us have been conditioned to expect a regular bonus from work or some other gift of money, either from living relatives or through an estate, there is still a big thrill when circumstances drop a big pile of money into your life.
In 2024, the average work bonus was roughly 2.8 percent of the worker’s annual salary, across all industries. What would you do with yours? While there’s nothing wrong with having a little fun, you may have some goals that need attention, too.1
Thinking About the Future
- Review Your Accounts — Reviewing your contributions to your personal or workplace retirement accounts is one way to prepare for the future.
- Invest — Perhaps it might be time to consider some sort of investment. We can discuss your options.
- Emergency Fund — If you don’t have one, now’s a great time to start it. If you do have one, it might be time to review.
Debt
It casts a long shadow, so it’s always nice to get a bit of sunshine instead.
- Consider Paying it Down or Off — Using your windfall to pay off any high-interest debts. The average interest rate for credit cards is somewhere around 20 percent.2
Family
If you’re raising kids, you know some things are coming up, either college or something else.
- College Plans — If saving for your child’s college education is a top priority, you may want to use part of the windfall.
- Saving and Investing — Remember that the future for your loved ones goes well beyond immediate concerns. If your priority is your family, look at the “Thinking About the Future” section again in that light.
Saving for Big Purchases
You might have a big purchase in mind. We can discuss any of them, whether they are listed here or not.
- Down Payment on a Home — Many people’s goals include home ownership. If you want to buy a home or are already well on that path, your bonus could get you on that goal.
- Vacation — You know you have one in mind! It's the vacation to end all vacations, whether it requires a giant jet or a private yacht. Talk to me about how we can start a place to set aside money for this goal.
A windfall provides an opportunity to work toward one of your goals. I look forward to speaking with you and answering your questions about any of the options above.
Since 2004, TCM Wealth Advisors has delivered comprehensive, fee-only fiduciary financial guidance to individuals, families, and business owners across Northeast Ohio—including the greater Akron/Canton and Cleveland areas—as well as to clients nationwide. Our independent, client-first approach ensures that every recommendation is made in your best interest.
As a fully independent advisory firm held to the highest fiduciary standard, we are legally and ethically obligated to act solely in your best interest. Our fee-only compensation model eliminates the conflicts of interest found in commission-based structures, allowing us to deliver objective, personalized advice tailored to your specific goals and financial circumstances.
Whether you're building wealth, preparing for retirement, planning for business succession, or facing complex financial decisions, TCM Wealth Advisors leverages over 20 years of financial and investment planning experience to deliver strategic, goal-based solutions to help you achieve long-term financial success. To begin your journey towards a successful and stress-free financial future, please give us a call at 330-836-7000 to schedule an introductory conversation. Alternatively, you may also schedule an introductory conversation with us here.
- https://www.northwesternmutual.com/life-and-money/average-bonus-percentage/
- https://www.bankrate.com/banking/what-to-do-with-annual-bonus/