If you recently inherited a large sum of money from a relative and are stressed out about how to properly manage it, then it is important that you know you are not alone. Inheriting a large amount of money is often stressful. The good news is that you are researching ways to protect your newfound wealth in safe ways, so you can rest assured that you are currently doing the right thing.
Here are some professional wealth management tips to help you handle your sudden wealth and reduce your stress level associated with it:
Tip: Park Your Money in a Bank Account While You Decide What to do with Your Windfall
When you first collect your inheritance, you should park it in a bank's savings account until you have a plan to invest it. You should avoid making impulse buys or giving money to relatives. Instead, put the money in the bank to protect it while you work with a qualified wealth management professional on a long-term plan.
Tip: Be Prepared for Friends and Relatives Asking You for Money
If your friends and family discover that you have inherited a significant amount of money, then you may start to get requests for loans or gifts of money to help with medical needs or other issues. You should be prepared for this happening and have a short response prepared. Rather than simply saying "no" to requests, which you are fully in your right to do, instead, tell people who approach you that you are working with a professional wealth manager and do not have access to any of the funds due to investments. If you are asked further questions about your investments, realize these questions are rude and you do not need to answer them. Simply repeat that you are working with a professional and wish the asker well in finding the funding they need.
Tip: Utilize the Services of a Reputable Wealth Management Professional
When your relative left their estate to you, they did so with the understanding that you would manage their money in a responsible way. Since you do not have previous experience doing so, you really do need to hire a qualified wealth management professional to guide you. To find someone who is reputable, ask friends or family members for referrals. You can also ask your doctor, dentist, lawyer, banker, or other highly compensated professionals for referrals, since many of these people are likely to utilize this type of service.
Share17 January 2017
My name is Eva, and I have been a personal investment adviser for the past 15 years. I have helped many clients wisely invest their money, and I want to give you some tips I have picked up along the way. Many people discount the use of CDs in investments, and I believe that this is a mistake. Financial professionals agree that CD rates are going to rise, and you can take advantage of that now. This blog will tell you how to find CDs with the best rates, how to build a CD ladder for investment purposes, and why CDs can be better than a savings account.
