Friends With Money #246: Your windfall game plan
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In this week's Friends With Money episode, host Ryan Johnson speaks with financial adviser David Sharpe, chair of the Financial Advice Association Australia (FAAA), about how to react to a sudden windfall - from $100,000 to $1 million, $10 million and even $1 billion.
Sharpe advises first confirming the money is real, then slowing down to avoid emotional decisions, and keeping the news private (limited to a spouse and trusted professionals).
They discuss balancing lifestyle spending with long-term goals, and how priorities shift by amount and life stage: using $100,000 for a home deposit or improving retirement cashflow, weighing debt repayment by interest cost (credit cards first; student debt is typically lower-cost), and the tax advantages versus access restrictions of superannuation.
00:38 First steps after a windfall: Verify, pause, and avoid emotional moves
01:53 Who to tell (and who not to): Keeping your windfall private
02:33 Spend vs save: Building a plan that matches what you value
04:00 Windfall playbook: What to do with $100,000
05:05 Debt, HECS and priorities: Paying down the right loans first
06:13 Superannuation trade-offs: Tax benefits vs access to your money
07:30 If the $100,000 came from selling an investment: Reinvesting and tax
08:05 Scenario two: How $1 million changes the plan
09:43 Mortgage vs shares: Tax smarts, borrowing back and debt recycling
11:43 Inheritance checks: Asset types, CGT and what you actually keep
12:21 Scenario three: $10 million - Financial freedom, purpose and relationships
14:26 Trusts and SMSFs explained: When structures help (and when they don't)
16:06 Intergenerational wealth transfer: Common estate and entity mistakes
18:00 Just for fun: What to do with $1 billion (and the responsibility)
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Friends With Money podcast FAQ
What is the Friends With Money podcast?
Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.
Where can I listen to the podcast?
You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).
Who hosts Friends With Money?
Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.
Is the podcast suitable for beginners?
Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.
What topics does the podcast cover?
The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.
How often are new episodes released?
New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.
Can I watch episodes with captions?
Yes, full episodes with closed captions are available on YouTube.
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Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.
Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.
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