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What Will You Do With Your Bonus or Windfall? Thumbnail

What Will You Do With Your Bonus or Windfall?

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


Let’s examine your choices for your windfall.


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.
  • 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. 

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.

Jeff Spitzmiller is the CEO of Ohana Wealth & Life Planning based in Cincinnati, OH.  Ohana specializes in life and financial planning for professionals in the healthcare and university fields.  The firm is an independent financial advisor and a fee-only fiduciary.  Jeff and the firm also enjoy volunteering and giving back to the local community.  You can reach Jeff at jeff@ohanaplanning.com.

  1. https://www.northwesternmutual.com/life-and-money/average-bonus-percentage/
  2. https://www.bankrate.com/banking/what-to-do-with-annual-bonus/

This was prepared by Ohana Wealth & Life Planning; a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Ohana Wealth & Life Planning Form ADV Part 2A & 2B can be obtained by written request directly to Ohana Wealth & Life Planning 212 East Third St. Ste. #100 Cincinnati, OH 45202. All opinions and estimates constitute the firm’s judgment as of the date of this report and are subject to change without notice. This is provided to investment advisory services clients of Ohana Wealth & Life Planning. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing may involve risk including loss of principal. Investment returns, particularly over shorter time periods are highly dependent on trends in the various investment markets. Past performance is no guarantee of future results. The information herein was obtained from various sources. Ohana Wealth & Life Planning does not guarantee the accuracy or completeness of such information provided by third parties. The information given is as of the date indicated and believed to be reliable. Ohana Wealth & Life Planning assumes no obligation to update this information, or to advise on further developments relating to it. This is for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person.  An index is a portfolio of specific securities, the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. An index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown.