Due to large settlements with major banks and insurance companies, New York State has received an unanticipated cash increase of $4.2 billion. The largest settlement came from French bank, BNP Paribas, which will pay the state $3.6 billion for claims that it filtered money through New York entities to Iran, Sudan, and Cuba. Governor Cuomo's office is considering a number of options for spending the cash. They could decide to replace the Tappan Zee Bridge, reduce debt, restore cuts to teachers and other student services, or potentially use the windfall to offer tax relief to residents of our State.
Similar to New York State, some of my clients have recently come into windfalls of their own. Whether inheriting money or from the sale of property, typically the next question I hear is: "Should we use this money to invest or should we pay down some of our debt?" My response: YES!
Paying down debt and investing are not mutually exclusive. There isn't a clear cut answer for how to handle your windfall--each investor is different and each scenario is different. Have the conversation with your advisor to see what steps will make the most sense for you. Governor Cuomo won't make this decision by himself and you don't have to either.
An informed decision will give you peace of mind and confidence in your future.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).