Many large cash payout recipients are moderate to low income households. Most payout recipients are not savvy investors. Higher income households tend to be more involved with and confident about investing than those in lower income strata. Reactions to Receiving Large Cash Payout Receiving a large lump sum payment can be a stressful experience. The vast majority of households are investing their large cash payouts.
Mutual funds are the investment vehicles of choice.
However, many are placing their payout in cash equivalents. A majority of large cash payout recipients seek professional financial advice. Fifty-nine percent of recipients say they received financial advice after receiving their payout. Financial planners are the most commonly used financial professionals, followed by stock brokers. Experience and trustworthiness are the primary characteristics desired in an advisor.