Have you come into a lot of money? Whether you've received an inheritance, sold a business, exercised stock options, won a lottery or received a settlement from an insurance claim, your emotions are no doubt running high. Our team's advice is uniform: Go slow. Here is some initial guidance.
Get professional advice. New wealth brings new opportunities and greater need for objective advice. Be wary of well-intentioned relatives and friends who offer unqualified advice. Arrange to meet with our team for wise counsel at first opportunity. Based on our expertise and experience assisting individuals in similar situations, we can help you understand what to expect and get you the support you need through our network of specialists.
Take a pause. It's important to take time to grieve the loss of a loved one or adjust to a windfall until you are ready to make sound decisions. If you received cash, park it temporarily in a money market fund or deposit investment. Determine whether there is an immediate need to update your own estate plan.
Review goals. During this timeout, review your goals to see how your priorities may have changed. Will you retire early, invest in a new business, travel, buy property or give money away?
Create a plan. Once you have reset your priorities, we can help you quantify the cost of your desired lifestyle and goals, and create a plan to achieve them. As tax is now a more significant issue, you'll want to consider new strategies to minimize or defer tax.
Reposition your portfolio. One mistake people make is to leave an inherited portfolio of investments as is. While it may have been right for your relative, it needs to be customized for you. We will help you establish an asset mix to reflect your own life expectancy, risk tolerance and needs for income or growth.
Update your own estate plan. Ensure those you have named as powers of attorney and executors are still appropriate to handle your finances. More sophisticated estate strategies such as trusts may now be relevant. Review your insurance policies and beneficiary designations as part of your updated plan.
With a significant life event like sudden wealth, you need the objective advice and support of experienced professionals. Please give our team a call.
