3 Things You Need To Know If You Inherit A Windfall
Want To Be A Millionaire? Of course, who doesn't, right?
Recently a young 30 something brought an interesting situation to my attention. She learned she will be inheriting a significant amount of money, in the several million dollar range. Her first reaction was “Whee!! I can travel the world!” Fortunately, someone much wiser recommended having a conversation with me before she goes off the rails and takes all the money with her.
I was happy to see her asking questions before she received the inheritance. Here are the top 3 tips I gave her about what to do once she becomes a millionaire. I thought I would share them here in case you or someone you know is as fortunate.
1) Establish a Trust to hold your assets. Give serious thought to how you spend money. Try to maintain the discipline of retaining your current lifestyle. Consider your current budget. If possible, work with a trustworthy investment professional that will construct a portfolio where you earn dividends that cover your lifestyle expenses. This way, you won't be depleting principal. The person that created the estate you inherited probably followed a similar conservative philosophy.