In 2006, I joined the ranks of millions of Americans who at one time or another have experienced an involuntary layoff. Mine came after my employer, Knight Ridder, was sold. It was a learning experience in many ways. Some important new insights came in the realm of money management.

I am not a financial expert, so I won’t try to pass off any investment advice. Recently, though, I read the November 2006 issue of Black Enterprise, which carried a very good article, “Managing a Financial Windfall.” It reminded me of all I hadn’t thought about prior to the sale of KR.

First, the loss of a job often brings with it a sudden infusion of cash – maybe a buyout or severance check, a cash-out on a stock or pension plan, or a bonus reconciliation. Taking a new job also may bring a windfall in the form of a signing bonus. In either case, it is important to think carefully about how to manage the cash. If you have just lost your job, you may need to reinvest the money to protect your future, or to work it into your monthly budget for day-to-day expenses. In any case, you will need a plan.

I had followed some of Black Enterprise’s advice: I got help. I consulted with a tax attorney, and signed up with a financial adviser, who was recommended by two colleagues whose judgment I trust. I learned that, at least in California, such advisers are regulated by the state and that various agencies maintain records of complaints lodged, etc. It is worth taking the time to check them out.

Another good piece of advice: Take your time. Don’t spend your money quickly, or make hasty decisions. Your overall goal is long-term financial stability.

Black Enterprise also raised the issue of charitable giving. I believe strongly in philanthropy, so I read this with interest. According to the magazine, you may want to look at donor-advised funds; establish a foundation; donate directly to an organization, or give to a scholarship fund. Work through this with a tax attorney and/or accountant so you can realize any tax advantages that may be available.

Speaking of taxes, if you get a windfall, you can be sure the IRS will want its cut. Often, you will have no control over the terms of distribution of your final dollars from your company. If there is any latitude in how that distribution is structured, consult beforehand with a tax attorney.