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 $100k 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)

Podcast Links:

Listen on Apple Podcasts

Listen on Spotify

Money Website

YouTube Podcast Playlist

Email Us: [email protected]

Get stories like this in our newsletter: bit.ly/3GDirbR