Winning $10 million sounds like the ultimate financial freedom. You could pay off your home, travel the world, invest in property and shares, help your family, or simply stop working altogether.

But what happens after the excitement wears off? Receiving a windfall gain is one thing; knowing how to protect and manage it is another.

In this episode of The Account Rant, Latitude Accountants’ Patrick El Bitar and Michael Hirmiz explore what they would actually do if they suddenly received $10 million. They discuss investing, diversification, helping family, protecting wealth, and why taking time to plan can be more important than rushing into big financial decisions.

They also explore lifestyle creep, overdue tax and ATO debt, financial stress, and the importance of having a strong financial plan before making major commitments.

What Is a Windfall Gain?

A windfall gain is a substantial financial benefit that occurs unexpectedly or outside your normal income.

Lottery winnings are an obvious example, but windfall gains can also come from:

• Selling a business
• Receiving an inheritance
• A major investment gain
• Selling property
• A significant business transaction
• An unexpected financial settlement

The challenge is that receiving a large amount of money does not automatically mean you know how to manage it.

As Patrick and Michael discuss, making money and keeping money are two very different skills.

What Would You Do With $10 Million?

Patrick’s hypothetical approach is not to spend the entire amount immediately. Instead, he talks about diversification, allowing some money for personal spending, purchasing a principal residence and investing across areas such as property, shares and ETFs.

He also considers investing in businesses he understands, helping his family and even purchasing a farm for his father.

The underlying principle is simple: make the money work rather than simply spending it.

Michael takes a slightly different approach, focusing heavily on planning and protecting the money before making major decisions.

That could mean considering existing debt, investment structures, estate planning, and how future income will be generated.

Why the First 90 Days Matter After a Windfall

One of the most important ideas from the discussion is not to rush.

Receiving $10 million can create enormous pressure to make immediate decisions. New cars, expensive holidays, property purchases, investments, and requests from family and friends can quickly consume attention.

Instead, the first 90 days could be used to:

• Understand your financial position
• Review existing debts
• Consider appropriate structures
• Think about investment opportunities
• Identify trusted professional advisers
• Review insurance and estate planning needs
• Decide how much money should remain accessible
• Establish a long-term financial plan

Michael’s approach is particularly focused on planning before acting. Rather than immediately investing the entire amount, he discusses taking time to consider the available options.

Lifestyle Creep Can Destroy Sudden Wealth

One of the biggest threats to a windfall is lifestyle creep.

Lifestyle creep happens when spending increases as income or wealth increases. A person might move into a more expensive home, upgrade their car, eat at more expensive restaurants or take on larger financial commitments.

The problem becomes even greater when the income is temporary.

A particularly strong income year does not necessarily mean the same income will continue next year. Patrick and Michael discuss how people can make long-term financial commitments based on a short-term financial result.

The same principle applies to a $10 million windfall.

Having $10 million today does not mean every future financial decision should be based on spending as though the money is unlimited.

Why Financial Planning Matters After Sudden Wealth

Sudden wealth can create opportunities, but it can also create complicated financial, legal and personal decisions.

The conversation highlights the importance of having trusted professionals involved, particularly when decisions involve investments, structures, insurance, estate planning or other areas outside an accountant’s expertise.

The goal is not necessarily to avoid spending the money.

It is to make decisions deliberately rather than emotionally.

Don’t Ignore Outstanding Tax and ATO Debt

The episode also moves into an important issue that affects many Australians: overdue tax returns and ATO debt.

Michael explains that outstanding tax obligations can become a significant burden, particularly when people continue putting their tax returns off year after year.

For someone who is already struggling financially, unresolved tax obligations can become overwhelming.

Getting up to date can provide more than just financial clarity. It can remove one major source of stress.

The discussion also highlights how financial health can affect mental health, with the speakers describing situations where people have become extremely distressed because of unresolved financial and tax problems.

Why Building a Strong Financial Base Matters

A windfall can be valuable, but Patrick and Michael suggest that long-term financial success is more often built through consistency.

Budgeting, cash flow management, and forecasting create a foundation that can support a business or individual through both strong and difficult periods.

When an unexpected financial gain arrives, that foundation can help determine whether the money becomes an opportunity for further growth or simply a temporary increase in spending.

Should You Invest Everything at Once?

Probably not without a plan.

Patrick explains that even in his hypothetical $10 million scenario, he would take his time rather than investing the entire amount within 90 days. He would look for opportunities and invest in areas he understands.

That principle is especially relevant when dealing with investments that carry significant risk.

The episode’s discussion of cryptocurrency also highlights the danger of FOMO — buying into an investment because everyone else appears to be making money.

The key takeaway is straightforward: don’t let excitement replace a financial plan.

The Real Question Isn’t How Much You Win

Winning $10 million would undoubtedly change your financial position.

But the more important question is what happens next.

Do you have a plan?

Can you control your spending?

Do you understand the investments you’re considering?

Have you considered your family, insurance, estate planning, and tax obligations?

Most importantly, can you turn a one-off financial event into long-term financial security?

As Patrick and Michael conclude, windfall gains can be fantastic, but building a strong financial base through budgeting, cash flow and forecasting provides a much more sustainable foundation.

The money may arrive suddenly. Your decisions don’t have to.

Frequently Asked Questions About Winning a Large Windfall

What is a windfall gain?

A windfall gain is a substantial financial benefit received unexpectedly or outside your normal income, such as lottery winnings, an inheritance, or a major asset sale.

What should you do after receiving a large amount of money?

Consider taking time before making major decisions. Reviewing your financial position, debts, investments, insurance, estate planning, and professional advice can help create a structured plan.

Can lifestyle creep cause you to lose your wealth?

Yes. Increasing expenses and financial commitments after receiving more money can quickly reduce wealth, particularly when the increased income or wealth is not sustainable.

Should you invest a windfall immediately?

There is no single answer for everyone. The episode emphasises taking time, understanding investment opportunities and developing a plan rather than rushing into major investments.

Can an accountant help with overdue tax returns?

An accountant can help assess outstanding tax obligations, prepare overdue returns and work through available options for managing tax liabilities.

Need an Accountant? Let’s Talk

Whether you’re dealing with overdue tax returns, ATO obligations, business accounting, or simply want greater clarity around your financial position, having the right accounting support can make a difference.

Latitude Accountants works with individuals, business owners and entrepreneurs across Australia, providing practical and proactive advice to help you make informed financial decisions and build a stronger financial foundation.

Latitude Accountants

📍 Sydney Olympic Park | Marrickville | Melbourne | Loxton
📞 1300 706 597
📧 info@latitudeaccountants.com.au

Latitude Accountants provides practical, proactive accounting and business advice designed to help you stay on top of your obligations, make smarter financial decisions and plan for what comes next.

Disclaimer

This article discusses a hypothetical scenario involving a significant windfall gain. The information provided is general only and does not constitute financial, legal or tax advice. Individual circumstances vary. Before making decisions involving investments, superannuation, insurance, estate planning, tax or significant sums of money, speak with an appropriately qualified financial adviser, lawyer or tax adviser.