If you have just received sudden wealth, your first instinct might be to go on a shopping spree. However, this is a great opportunity to further your financial future. With the help of a sudden wealth advisor in northern Virginia, you can make your sudden wealth last and create opportunities for you and your family. Here’s how.
Examine Your Financial Position
First, look at how this sum changes your financial situation. How much money did you receive and how will it be paid? Speak to a professional about your tax liability and create a plan to minimize the tax burden.
Next, decide where you will put the money while you plan. Consider your short and long-term goals and how you can achieve them. Working with a sudden wealth advisor is a great way to understand your options, make informed decisions and create a plan that benefits your financial future.
Create an Investment Plan
Whether you are new to investing or have dabbled in it already, sudden wealth changes things. A sudden wealth advisor in Northern Virginia can help you create a strong, prudent investment plan. It’s important to understand how much you need to set aside for general living expenses, taxes, and other short-term goals.
Next, think about what type of investment return you need. What level of risk are you willing to accept? How can you maximize your after-tax return? Work with a sudden wealth advisor to create a balanced portfolio that suits your needs or restructure your current portfolio.
Reevaluate Insurance Needs
Now that you are wealthy, you need to consider your new insurance needs. Do you have personal umbrella liability insurance? What about homeowners, disability, long-term care insurance? Make sure you have the correct type and amount of coverage for your situation. If you are making any expensive purchases, like jewelry or artwork, you may wish to insure those. You will also need to review your life insurance and potential estate taxes.
Estate Planning with Sudden Wealth Advisors in Northern Virginia
Estate planning involves more than just transferring property. It should focus on minimizing the short-term burden and maximizing the long-term positive impacts on your heirs. Speak to your sudden wealth advisor about your current estate plan documents and review them for accuracy.
Next, you may wish to address new or unique assets, consider setting up a trust, review beneficiaries and decide who will manage your finances, and make health care decisions if you are unable. You should also discuss strategies for minimizing future estate taxes.
Sudden Wealth Advisors and Charitable Donations
Once you have a plan for everything above, you can decide whether you want to give some of your sudden wealth away. You may give cash or property to your loved ones or favorite charities. It’s important to have a plan in place so that you can evaluate requests and say no when you need to. Consider the following:
- Do you want to pay for a family member’s education or medical bills? If so, how much?
- Determine how much of your new wealth should be allocated to charitable gifts and if it should be done during your lifetime or at your death.
- Have a plan in place for handling requests from friends and family to borrow money.
- Consider which strategies make sense for your charitable gifts.
Sudden Wealth Advisors in Northern Virginia
Having the right team of professionals on your side can make a world of difference when it comes to creating a plan for your sudden wealth. If you find yourself in this situation, it can feel overwhelming. However, remember that this is a chance to make significant changes for your future financial situation. To learn more about how a sudden wealth advisor can help you make your wealth last, contact Argent Bridge Advisors.