A sudden wealth event can feel like a turning point. Whether it’s the sale of a business, a redundancy payout, an inheritance or even a divorce settlement, receiving a substantial lump sum opens the door to exciting possibilities—but also comes with critical decisions.
Without a clear strategy, it’s all too easy to lose momentum. You might clear some debt, treat yourself to a new car, or fund home upgrades—but before long, the opportunity to create lasting wealth has quietly passed.
For executives and business owners in the mining and resources sector, learning how to take advantage of this windfall—not just spend it—is the key to long-term financial wellbeing.
Pause and Plan: Avoid the Temptation to Overspend
The emotional high of a sudden windfall often brings with it a temptation to spend. Travel, lifestyle upgrades, and long-postponed renovations suddenly feel well within reach.
There’s nothing wrong with enjoying some of the reward—but going too far too soon is where many falter. The key is balance. It’s tempting to greenlight that long-awaited renovation, upgrade your car, or book the trip of a lifetime—but without a plan, these decisions can reduce your long-term financial impact.
Instead of making rushed decisions, consider parking the funds temporarily in a high-interest savings account. This approach gives you time to assess your financial priorities while still earning interest, without committing too soon to irreversible choices.
Reduce Debt, But Keep Flexibility
Paying off your mortgage in full might seem like the obvious move—but doing so can limit your flexibility for the unplanned. A more effective approach is to place surplus funds into your offset account, which reduces the interest payable on your home loan while keeping your capital accessible if your circumstances change. This can be particularly important if you decide to invest, help family members, or transition to consulting work in the near future.
It’s also valuable retaining a cash buffer—funds held in a high-interest savings account or offset account can provide protection against market downturns or unexpected expenses. This buffer helps you avoid being forced to sell investments at an inopportune time, preserving your strategy and your peace of mind.
We explore this in more depth in our article: The Power of Offset Accounts: Flexibility and Financial Strategies for Mining and Resources Professionals
Allocate Wisely: Structures That Serve Your Strategy
Once urgent obligations are handled and personal spending is in check, it’s time to consider the best way to hold and grow your new wealth.
Choosing the right structure is often more important than choosing the perfect investment. A smart structure lets your wealth work harder over time, and helps safeguard against unexpected events.
Here are four common structures and how they compare:
1. Self Ownership
Pros: Easy to manage and set up
Cons: 100% of income and capital gains are taxed at your marginal rate; no asset protection
2. Spouse Ownership
Pros: Tax benefits if your spouse is a lower income earner; better asset protection than your own name
Cons: Future income and gains taxed to your spouse
3. Family Trust
Pros: Flexibility to distribute income and gains each year; solid asset protection
Cons: Higher setup and ongoing costs; worthwhile only for significant investments
4. Superannuation
Pros: Attractive tax treatment (earnings and capital gains taxed at 15%)
Cons: Funds are locked away until at least age 60; less flexibility in the short term
Support the Next Generation With Care
For those who are already well-established, a sudden wealth event may present an opportunity to help adult children—perhaps as they enter the property market or raise a young family.
However, you should tread carefully. Before handing over a large sum, clarify whether the support is a gift or a loan. Poorly documented transfers can cause issues later—especially in the event of divorce or estate disputes.
We cover this in more detail here: Gift or Loan? Supporting Adult Children Financially
Take It Slow, Then Take the Right Action
Sudden wealth can be life-changing—but only if it’s managed well. By taking time to reflect, working with trusted advisers, and avoiding knee-jerk spending decisions, you can turn a one-time windfall into lasting financial security.
Many of our clients take an interim step: holding funds in a high-interest account, using that time to model out scenarios, get professional advice, and consider how their wealth fits into a broader estate and succession plan.
A sudden wealth event is a rare opportunity—but it requires clear thinking and the right support. Whether you’re managing redundancy proceeds, selling a business, or receiving an inheritance, we’re here to help.
For confidential advice tailored to your situation, you can call James at +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
To learn more about James, visit this link.
Resources Unearthed is a solutions hub that connects senior executives, established professionals, and business owners in mining and resources with proven specialist advisers.
This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.
