Receiving a large share payout – whether from an IPO, M&A event or vested stock options – can be life-changing. But it can also be complicated. Without a clear plan, it’s easy to miss opportunities or make decisions you later regret.

Here are eight important questions to ask before making your next move:

1. How will my shares be taxed?

Share payouts can attract income tax, capital gains tax (CGT) or both, depending on how and when the shares were acquired.

Ask yourself:

• Will this cross me into a new tax bracket?
• Do I have unused tax allowances?
• Should I be thinking about timing when I sell?

A financial planner can work with your accountant to help you understand your tax position and create a strategy that aligns with your broader financial goals.

Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice.

2. Can I access the shares or are there restrictions?

It’s common for share payouts to come with strings attached. These might include:

• Lock-in periods after an IPO
• Performance-related vesting
• Restrictions on when or how much you can sell

Before making any financial commitments, confirm what’s actually available to you and when.

3. Should I make big financial decisions right away?

Sudden wealth can be emotionally charged. It’s natural to feel the urge to upgrade your lifestyle, but quick decisions can lead to long-term regret.

Take time to:

• Reflect on what’s changed
• Separate short-term emotion from long-term strategy
• Seek professional guidance before making large financial moves

4. Is this a one-off or a recurring opportunity?

Most large share payouts are rare. Even if you expect strong future earnings, it’s smart to treat windfalls as one-time events.

Ask:

• Can this accelerate my retirement plans?
• Could it help support family goals?
• Is this the right moment to take a career risk?

Thinking long-term can help prevent short-term regrets.

5. What are my personal and financial goals?

Money is just a means to an end. Before investing or spending, get clear on what you want this payout to achieve.

Consider:

• Short, medium and long-term priorities
• Your ideal lifestyle and level of financial independence
• The legacy you want to leave behind

Your goals will determine the right plan. Planning should always come before investing.

6. Is my financial foundation secure?

Use this opportunity to strengthen the basics:

• Clear any high-interest debts
• Top up or build your emergency fund
• Review protection cover (e.g. life insurance or income protection)

It’s about improving resilience, not just growing wealth.

7. Is my wealth too concentrated in one place?

If a large portion of your wealth is in company shares, it could be time to rebalance.

Ask:

• What would happen if this company’s value dropped significantly?
• Am I overexposed to a single sector or geography?
• Could I diversify into other asset classes?

Spreading risk through global diversification is often a smart next step. Capital at risk. Investments can go up and down in value, so you could get back less than you put in.

8. Should I work with a financial planner?

Managing a share payout is more than an investment decision. It requires joined-up thinking across:

• Tax efficiency
• Lifestyle planning
• Risk management
• Scenario testing
• Wealth transfer

At NOVA Wealth, we specialise in helping clients with complex financial lives navigate pivotal financial moments like this.

Ready to turn your windfall into long-term confidence? Book a Discovery Call to learn how NOVA Wealth can help you build a clear, personalised strategy that works for you.

Capital at risk. Past performance is used as a guide only. It is no guarantee of future returns. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. This article does not constitute personal advice.