HOW TO HOLD ON TO SUDDEN WEALTH WITHOUT REGRETING YEARS AFTER.

Surprise, you won the lottery, got one in a life time contract, got your pension,   got a  willed wealth, made a killing  from property  sale,  great inheritance,  stocks,  bonds, pools, etc

1.      Don’t rely on numbers alone. Last year’s investment result may   or may not occur again. There are no guarantees. So beware of those who tout recent performance as a virtual guarantee of future results.

2.      Don’t operate alone. Incorporate a company with you, kids and wife as shareholder and directors. Outsiders can only be directors and not shareholders in order to be protected. This also gives you tax advantage.

3.      Pay off your debts if any. Clean up your personal balance sheet. If the interest you pay for borrowing is greater than the interest you earn from the investment of the borrowed money, your losing. For those who borrow  to invest.

4.      Stop playing the game, you have already won. Protect your assets, if your wealth consists of much assets. Examine the motivation of those given you advice.  Do not take advice of amateurs, those who have never met wealth and utilize it successfully. And be cautious of advice of financial professionals and advisers. Remember you have the money, they have only knowledge not experience.

5.      Keep it simple. If you want investment go for safe assets like treasury bills, certificate and term deposits like fixed deposits, federal and state governments bonds. These are the safest though with low returns. You can invest in properties only after quality advice from good estate surveyors and valuers. Capital market is a high risk area which requires greater knowledge and skill.

6.      Make your own decisions. Its your money. Keep the discretion to buy and sell. Use advisers just for advice. Remain in control. Seek several advice and select only the best.

7.      Get liability insurance. Protect your new wealth from law suits by unscrupulous people. This  protects your financial and investment mistakes. Talk to insurance companies they will be able to advice you better.

8.      Just say no. Everyone seems to want to help. So watch out for con, particularly if the money is known to many people to have been won by you or inherited by you, especially if don’t have financial experience.

9.      Charity begins at home. Give because you want to give, not because you were told to give. Give income not principal and develop a charity budget each year, you can’t cross.  

10.  Train your kids in wealth management, empower them with positions in your company or firm, including your wife. And suddenly release control to them.