I've received a large severance payment and I don't know what to do with it

Receiving a substantial severance payment brings a strange mix of relief and vertigo.

It's a lot of money all at once, and almost nobody tells you what to do with it before it evaporates.

That is what happened to Javier after fifteen years at the same company.

Javier, 52, industrial engineer

A restructuring ended with his job gone and a severance payment of €180,000. His situation when he came to Quality Finance:

• €180,000 in severance pay just landed in his account
• A mortgage almost paid off and no other debts
• Doubts about whether to start a business or look for another job
• Fear of spending the money without a plan and regretting it

He knew that leaving it sitting in the account meant losing value every year, but he didn't want to put it at risk without properly understanding the options.

“I don't want to look back in three years and wonder where all that money went.”

He sought advice from Quality Finance before making any decision.

What did we do together?

The first step was to take the urgency out of it and put every euro in its place.

• Tax on the severance payment: We reviewed which part was exempt from tax and what impact the rest had on his income tax for the year.
• Time horizon and goals: We separated the money he would need in the short term from the money that could work for the long term.
• A cushion while he decides: We set aside enough liquidity to live comfortably during his career transition.
• A staggered portfolio: We designed a phased investment strategy so he wouldn't enter the market all at once.
• The entrepreneur scenario: We calculated how much he could commit to a project of his own without compromising his security.

After the report, Javier understood that:

• Part of the money had to stay liquid and accessible
• He didn't have to decide his professional future in a hurry
• The rest could start working in his favour in an orderly way

From a shock to an opportunity

Javier went from seeing the severance payment as a problem to using it as the foundation for his next stage, calmly and with the numbers in front of him.

All details of this case have been changed to protect privacy. It is an illustrative example and not a recommendation to invest.