5 Tips on How to Handle Sudden Wealth

Whether you just signed a multi-million dollar contract or inherited property from a wealthy relative, here are some tips to help you keep—and grow—your wealth responsibly

3. Develop a comprehensive financial and life plan. Many organizations talk about their ability to do this. They show nice pictures of couples walking in the sand or smiling in a hammock. It certainly sets the right tone for the conversation. Despite this, their plans may be cookie-cutter solutions. In the end, some standardization is good. Years of research has taught the financial industry important lessons about investing, for example, and those lessons can yield low-cost, highly efficient portfolios that meet an investor’s risk tolerance and long term needs. However, don’t forget that your needs come first. To formulate a your plan, you will need to be clear on the amount of income you would like but also the type of life you would like. You’ll need to consult your financial team to discuss issues such as asset protection, trusts, life insurance and other topics of estate planning. The American College of Trusts and Estates Council (ACTEC) can be a great resource for competent counsel in these areas.
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  • Lexe

    Another important step is to set aside a sum as “mad money”, at the very beginning, that you can spend however you wish. This will relieve some of the pent up desire to spend.