If you’re receiving a settlement from a life-altering event, such as personal injury, property damage, or an employment dispute, know this: you're not alone, and it is normal to ask, “What now?”

This may be the most significant sum of money you’ve ever received. But it’s more than just a windfall. It’s a crossroad. What you do next can shape your financial peace for decades to come.

At our firm, we’ve guided many families through life transitions like this one. Here are five smart, grounded steps to help you avoid common pitfalls and build a future marked by clarity, confidence, and purpose.

Step 1: Pause and Protect

Your first move? Nothing, for now. It’s normal to want to take immediate action. But when it comes to significant financial decisions, taking a beat is often the wisest choice.

What to do:

• Park the funds in a safe, highly liquid account such as FDIC-insured high-yield savings or U.S. Treasury bills.

• Avoid large purchases, gifts, or new ventures for at least 90 days.

• Take time to think, grieve, and breathe.

What to watch out for:

• FDIC insurance has limits. Coverage is capped at $250,000 per depositor, per institution. Large dollar settlements need to be spread wisely or placed in programs with extended coverage.

• Be cautious of unsolicited “investment opportunities.” Scammers often target settlement recipients.

Smart alternative:

Beyond FDIC-insured accounts, another safe option is short-term U.S. Treasury securities. They are backed by the U.S. government, give you steady access to your money, and often provide competitive yields. The interest is also tax-free at the state and local level, which makes them a reliable choice for keeping your settlement secure.

Our take: The best first step is often no step at all. Create safety and space before making decisions.

Step 2: Build a Trusted Team

You don’t have to figure this out alone and you shouldn’t. A coordinated team can help you avoid costly mistakes and make confident, informed decisions.

When you are managing a life-changing settlement, success is not only about making smart choices. It is about making coordinated choices. The best outcomes happen when professionals work together to support your full financial picture.

Who should be at your table:

• A fiduciary financial advisor to help design your long-term strategy, coordinate decisions, and ensure all the moving parts align with your goals.

• A CPA to clarify your tax liability and help reduce it when possible.

• An estate attorney to protect your assets and plan your legacy.

Why the fiduciary distinction matters:
Unlike brokers or sales-driven advisors, fiduciary financial advisors are legally and ethically obligated to put your interests first. They do not earn commissions from products. They earn trust by giving objective guidance based solely on what is best for you.

What to watch out for:

• Conflicted advice: If someone is recommending products they are also paid to sell, they are not held to a fiduciary standard.

• Lack of collaboration: A team that does not work together can create missed opportunities, inconsistent strategies, or unnecessary tax costs.

• Advice in isolation: Each professional plays a role, but without coordination important details can easily be overlooked.

Our take: A fiduciary advisor serves as your financial quarterback, bringing leadership, clarity, and coordination across your team. At our firm, we embrace that role with care and seriousness. We sit on the same side of the table as you, and every recommendation is grounded in what is best for you now and in the years ahead.

Step 3: Understand the Tax Picture

The more you keep, the more you can use for yourself, your family, and the legacy you want to build.

Not every dollar from a settlement is treated the same under the tax code. Some portions may be completely tax-free, while others could create a significant tax bill if not managed carefully. Knowing the rules up front helps you make smarter choices, avoid surprises, and keep more of your money working toward what matters most.

What to know:

• Compensation for property loss or personal injury is often not taxable

• Payments for emotional distress, lost income, or punitive damages are typically taxable

• Any investment gains after receiving the funds will be taxed

What to watch out for:

• Misclassifying different portions of the settlement, leading to avoidable taxes or penalties

• Underestimating your future tax bill, especially if you invest and grow the fund.

• Overlooking tax-smart giving strategies, such as donor-advised funds, that can lower taxes while increasing your impact

Our take:

A proactive tax strategy is not just about reducing what you owe. It is about maximizing what you keep so you can enjoy your life, provide for future generations, and give generously to the causes you care about. As fiduciary advisors, we work closely with your CPA or bring in trusted tax partners to help you make confident decisions that reflect your values and protect your wealth.

Step 4: Create a Life-Driven Financial Plan

The goal is not just to manage your money. The goal is to use it to create a life that feels meaningful, secure, and aligned with what matters most.

This settlement creates a powerful opportunity to pause and ask deeper questions:

• What does peace of mind actually look like for me?

• Where do I want to live and how do I want to live?

• How can I provide for loved ones or give generously without putting my own future at risk?

The right financial plan turns those answers into action.

What your plan should include:

• A strong emergency reserve for flexibility and resilience

• A clear approach to debt, housing, and insurance coverage

• Strategies for healthcare and long-term care needs as you age

• Defined goals for retirement income, giving, and legacy planning

What to watch out for:

• Lifestyle creep. Small upgrades can quickly become big ones, and without intention your wealth can disappear faster than you realize.

• Unspoken family expectations. Money can create tension if roles and boundaries are not clear.

• Analysis paralysis. Without a plan, it is easy to get stuck, make impulsive choices, or avoid decisions altogether.

Our take:
A thoughtful plan gives your dollars direction so they serve your values, your goals, and your future. We help clients design plans that are flexible, grounded in what matters most, and built to bring clarity and confidence to every decision.

Step 5: Invest With Intention

Once your immediate needs are secure and your goals are defined, it’s time to grow your wealth thoughtfully.

A settlement is more than a chance to invest. It is an opportunity to shape the next chapter of your life and legacy. With the right strategy, your wealth can support your lifestyle, create opportunities for the next generation, and give you the ability to be generous along the way.

What to do:

• Diversify across stocks, bonds, and other investments

• Match your strategy to your timeline, risk tolerance, and income needs

• Use tax-smart investment accounts like Roth IRAs, brokerage accounts, or 529 plans

• Stay disciplined and consistent rather than reacting to fear or headlines

What to watch out for:

• High-fee products or promises that sound too good to be true

• Concentrating too much wealth in real estate or a single business

• Making emotional investment choices (especially during market volatility)

Our take:

Investing done well is steady, strategic, and deeply personal. It is not always about chasing the highest return. It is about creating peace of mind and building a life that lasts. As fiduciary advisors, we help clients invest with intention so their money grows in line with their values, their freedom, and the legacy they want to leave.

You Have a Rare Opportunity

A settlement can mark a new beginning. With the right plan and trusted guidance, it can bring peace, purpose, and even lasting impact.

Our firm helps individuals and families navigate these transitions, whether your goal is to protect, grow, or give with intention.

If you or someone you love is receiving a settlement, we invite you to a complimentary 60-minute strategy session. Together we can design a plan that reflects your goals, tax picture, and values.

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Disclosure: This material is provided for informational and educational purposes only and should not be construed as tax, legal, or investment advice. Examples are hypothetical and for illustration purposes only; actual results will vary. Tax laws are subject to change, and their application may vary depending on individual circumstances. Clients should consult their own tax and legal advisors before making any charitable giving decisions. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

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As financial planners, we constantly seek opportunities to steward our client’s assets. Protecting your identity is a critical aspect of this responsibility as many of our planning tools and custodian accounts can be accessed on any device at any time. In today’s digital age, identity theft is a growing concern. It has become easier for criminals to steal someone’s identity and wreak havoc on their financial and personal life. Fortunately, you can take steps to protect yourself from identity theft.

Here are 10 ways someone can protect their identity from getting stolen:

1. Create strong and unique passwords: One of the easiest ways to protect your identity is to use strong, unique passwords for all your accounts. A strong password includes a mix of uppercase and lowercase letters, numbers, and symbols. The longer the password, the better. Avoid using the same password for multiple accounts, as this makes it easier for hackers to access all your accounts if they guess one password. Our best advice is to try to come up with a “passphrase” instead of a password. For example, “#Cantwait4theWEEKEND!”  

2. Enable two-factor authentication: Two-factor authentication adds an extra layer of security to your accounts by requiring a code in addition to your password to log in. This code is usually sent to your phone or email, ensuring that only you can access your accounts even if your password is compromised. Do not provide this authentication code to anyone else.

3. Be cautious of phishing scams: Phishing scams are a common tactic used by identity thieves to trick people into giving away their personal information. Be cautious of unsolicited emails or text messages that ask for personal information or contain suspicious links. Always double-check the email sender or phone number to ensure it is legitimate.

4. Regularly monitor your credit report: Review your credit report for errors or fraudulent activity and report any unauthorized accounts or transactions to the credit bureaus and the affected creditors immediately.

5. Freeze your credit if you don’t need to tap into it: A credit freeze restricts access to your credit report, making it difficult for identity thieves to open new credit accounts in your name. Contact each of the three major credit bureaus (Equifax, Experian, and TransUnion) to request a freeze.

• Equifax: Call 800-349-9960 or go online.

• Experian: Go online to initiate, or for information, call 888‑397‑3742.

• TransUnion: Call 888-909-8872 or go online.

6. Shred sensitive documents: To prevent identity thieves from piecing together your personal information, shred sensitive documents such as credit card statements, bank statements, and tax documents.

7. Don’t give out sensitive Information: Don't give out personal, financial, or health-care information over the phone, mail, or the Internet unless you have a trusted relationship with the requestor and initiated the contact. Even with trusted contacts, it’s best to send secure information securely. Using online portals to upload information or password-protected files can be a way to protect your information.

8. Secure your devices: Keep your computer, smartphone, and other devices up-to-date with the latest security updates and anti-virus software to protect against malware and other threats. Require a passcode to access your phone or computer if they are idle for an extended period.

9. Be mindful of public Wi-Fi: Avoid using public Wi-Fi networks for sensitive tasks such as online banking, as these networks are often unsecured and vulnerable to hacking.

10. Limit your social media footprint: Be mindful of the personal information you share online, including on social media platforms. Consider adjusting your privacy settings to limit the amount of personal information visible to others. If you are a parent, be mindful of how much of your child’s personal information you share online. Personal information (birthdays, the street they grew up on, etc.) can make security questions and answers vulnerable to hacking in the future.

In today's digital age, protecting your identity is critical, and as financial planners, we encourage our clients to take proactive steps to safeguard their personal and financial information. If you believe that any of your logins have been compromised, our advisors and partners will work swiftly with you to protect your accounts.

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As a parent of a five year-old, my wife and I cherish our occasional date nights together. For some reason, serious topics and concerns about our family seem to come up during those times. One evening we found ourselves discussing our out-of-date Will that we completed before my son was born. We both agreed that the decisions we made back then needed to be updated. We revisited questions like, “If both of us were to pass away, who is the right person to take care of our son? How much money would he get from us? Would he be responsible enough to handle that money when he turns 18?” For most of us, conversations like these tend to go nowhere and we move on with our busy lives. This task then falls into the dreaded pile of “things we need to do.”

As human beings, we are experts at procrastinating, which is evidenced by a recent survey that showed that 72% of adults either had no estate plan or their plan is out-of-date1. I have experienced many people admitting that they need to create/update their estate plan but never take the action needed to complete it. Common reasons I have heard over the years include:

• “I’m really busy right now and I will do it later”

• “I’m not sure if I need it”

• “I don’t know where to go to get it done”

• “I am concerned about the cost”

SO HOW CAN WE REMOVE THE BARRIERS THAT PREVENT US FROM DOING WHAT WE KNOW IS IMPORTANT? 

In my experience advising clients on estate planning, I have found the following tips help remove these barriers:

• GET A “WORKOUT” PARTNER - Similar to exercising with a partner, finding a partner to keep you accountable can greatly increase your odds of success. Tell your advisor that this is an important goal for you and ask them to make it part of their follow-up service. If you don’t have an advisor, ask a friend or family member.

• GET EDUCATED - Becoming informed and taking the time to understand why removes much of the uncertainty, helping you feel comfortable and motivated to take the first step. Ask your advisor for an education session. If you know an estate planning attorney, you can check to see if they will provide a complimentary first meeting where you can ask questions. Another option is to do your own research on websites like the Oregon State Bar Association http://www.osbar.org/public/legalinfo/wills.html

• GET PREPARED - Establishing your goals and making a handful of key decisions ahead of time makes your meeting with the estate attorney more productive and can save you money if they charge by the hour. In addition, it helps create progress and momentum so that the process does not stall. Ask your advisor or an estate attorney if they can provide you with a questionnaire to help you prepare. Then carve out about an hour with your spouse/partner to write down information and discuss key decisions that require thought and debate. Examples of these preparation items include:

• Decide who will be the guardians of your minor children.

• Decide who do you want to be the beneficiary(s) of your assets and how would you like them to be distributed.

• Decide who will be in-charge of managing and carrying out your plan after you pass away.

• Determine your view of the probate process.

• Prepare a list of your assets, debts and any life insurance.

• Prepare a list of your personal information – names, dates of birth, contact information for yourselves, children, beneficiaries, etc.

• GET A REFERRAL – Ask your advisor, friend or family member for a referral to an attorney who specializes in estate planning AND SCHEDULE A MEETING. Scheduling a meeting creates a deadline that will help you to move forward with the process. At Human Investing, we will often facilitate the first step by scheduling the meeting for our clients. Ask your advisor to help you take this first step for you.

• LASTLY, REMEMBER WHY THIS IS IMPORTANT - An estate plan protects the people and causes you care about the most in life. Keeping this in mind can provide the motivation you need to see it through.

CONCLUDING THOUGHTS

With just a little focus and help, you can “check the box” on completing/updating your estate plan. My wife and I did end up turning that date night conversation into a new, updated estate plan by following the above tips. Now we have peace of mind and can have more enjoyable, light-hearted conversations going forward.

 1The USLegalWills.com survey conducted by Google Consumer Surveys, June 2016.

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During my time leading our participant education efforts for the retirement plans we manage, I’ve received all kinds of questions. Questions ranging from, “How do I start a 401k?” to “What’s the best way to consolidate my student loans?” However, a question I’ve gotten more frequently is:

“If I have the ability to save more, should I pay off my mortgage or should I put more towards retirement saving?”

I feel like this question has been on people’s minds as our economy has made a nice recovery since 2008. For people I’ve talked with, the question has come up due to a change in financial circumstances such as; an inheritance or some form of windfall, the sale of a home, or a recent bonus. Regardless of the circumstances, these individuals have been sitting on this money in low interest rate saving accounts and are looking for ways to have their money work harder for them. While there is no all-inclusive answer, I’ll do my best to outline some of the pros and cons of paying off your mortgage/making additional payments or saving more toward your retirement account.

Your home.

You will not change the value of your home by contributing more to the mortgage, or even paying it off. If your house is worth $350k, it’s always going to be worth $350k until the market determines otherwise. When you put more money into paying off your house, it’s not doing anything to change the value of the house…you’re basically putting money into an illiquid asset that you can only access when you sell the home or take a HELOC.

Additionally, your house is most likely financed at a low/tax-deductible interest rate. Your interest rate might be in the 4.5% ballpark. With your tax deduction, you’re most likely paying a real interest rate of 3% to 3.5%. That’s pretty cheap money. If interest rates were much higher (like in the 8% to 9% range), then it would be a different story and paying off your mortgage might make more sense.

Investing.

When putting money into a long-term retirement account and investing appropriately, you’re building an asset that can grow at 9% per year, using the S&P 500 as a benchmark, over a long period of time. By putting money in, you’re actually giving those dollars the ability to grow over the years. Unlike putting money into your mortgage, your deferrals will directly affect the type of return and the growth of that account over time. So, the more you put in, the more you will get out in the end.

Example: Keep in mind that nothing you do, except making updates to your home, will increase the value of it. Compare that with an investment/retirement account. Let’s assume there are two different people…one has been putting a fair amount of savings in their retirement account, the other has contributed a much smaller amount. For the sake of the example, let’s call them Kelly and Chip.

Kelly has a $110k account. Chip has a $10k account. It’s 2014 and they are both invested in the Vanguard Target Retirement 2040 fund. The return on that fund in 2014 was 7.15%.

So, to start 2015 and without additional savings, Kelly now has an account worth $117,865 and has gained $7,865 just on return alone. Chip now has an account worth $10,715 and has gained $715 on return alone. Both are good, but Kelly is setting herself up to have a suitable retirement account. By the way, if we assume that neither Kelly or Chip contribute another dollar to this account forever, in the year 2040 (assuming an average 7% rate of return per year) Kelly will have an account value of about $640k, while Chip will have an account worth about $58k. That’s a huge difference! Personally, I’ll take the investment accounts over paying off my mortgage a few years earlier.

Regardless of your views on this specific question, know that if you’re wrestling with anything retirement account related feel free to reach out by phone at 503.905.3100 or email 401k@humaninvesting.com anytime. We would love to connect with you!

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