A big financial windfall can bring you considerable freedom, but it can also bring significant concerns. Having a large sum of money suddenly thrust into your hands is not a typical situation for the average person. With the trouble most of us have balancing a checkbook, how can we be trusted to protect and plan the use of large sums. The news is loaded with examples of families who have not just wasted their chances for financial freedom; they have actually blown up their families and relationships through their misuse of the money that fell into their lap. How can you make sure this stays a blessing and doesn’t become a curse!
Shhh…..
Say you take the 30-1 odds before the Super Bowl on who will win. If you bet enough, the word may get out. If at all possible keep your mouth shut. Most significant sum winners may not have control over what news gets out, but they can control how many people they tell and how fast they make themselves available. The more individuals who know, the more the potential for trouble to develop. Old friends come out of the woodwork, shaky investments need to be made, and family members need your help. Discretion is the better part of valor, so be discreet for your sanity.
Just wait
Suddenly having a large sum of money come into your life causes serious stress. Stress from family, stress from work, stress from every possible direction. Making critical decisions at this juncture is a somewhat risky venture. Another way of saying that is as Susan Bradley of the Sudden Money Institute says, “We humans have cognitive decline when under stress,” or we don’t think clearly. Waiting for anywhere between a couple of months to a year allows the pressure to dissipate so you can begin to think clearly and launch the investment process.
Organize your wish list
You have a list of things you must do. You may not realize it, but you do. While you are waiting to invest, start your bucket list and organize it based on your priorities.If you are single, it may be a little easier, if you are married there is more negotiation. Do your best to be flexible and giving as you work through the list. Consider the near future, the soon, and the later as you build your plan. Depending on the amount, using this time for travel may be a good scenario for using up some time in the now. Also paying off debt, and setting up a plan for day to day costs is good for the short term.
Get protection
Hire a full service insured investment manager for your funds. Giving someone else the authority to make decisions in your interest is worth your money. Allow them to serve as your protection against taxes, investment seekers, and even family. They can guide you toward investments that make you money and keep your investment growing and supporting you in your new life.
And…action
When you are ready, you have your advisors in place, your priorities in order, and you have let the whole scene cool off, it is time to take action. Be decisive and set yourself up for your future. If you are careful and thoughtful in your investing, you could have a life that is yours to control. When and where you go could be up to you. Who you work for and how you work and what you do could open up in amazing directions. Avoid the impetuous and enjoy the blessings of this unusual situation.