Maximize Inherited Wealth through Financial Planning
Inherited wealth is typically acquired through inheritance money bequeathed from a loved one upon death. However, it can also refer to money won through jackpot lotteries, investment practices, or lawsuits.
Obtaining inherited wealth can be a blessing, but sometimes causes unexpected problems. When people who aren't good at handling finances acquire lump sum cash they often have no clue what to do with the money. Instead of putting newfound wealth to work they go on spending sprees and quickly end up back where they started.
People who attain riches through lawsuits or lottery winnings can elect to enter into structured settlements that pay dividends over the course of several years. Structured settlements are a good choice for individuals acquiring wealth through personal injury lawsuits because they provide steady income to cover healthcare and living expenses.
Structured settlements are also a good option for jackpot lottery winners because they can maximize payouts and minimize taxation. Individuals that accept lump sum cash for lottery winnings don't receive the full amount and are often taxed at a higher rate because the winnings place them in a different tax bracket.
When unexpected wealth is obtained through inheritance it is important to remember that loved ones gifted money to improve the recipient's life. It is not uncommon for grief-stricken heirs to participate in spending sprees to soothe their sorrow.
Instead of wasting inheritance money on unnecessary luxuries, recipients would be better off consulting with a financial planner. These professionals can provide strategies that expand newfound wealth through investment practices.
It is beneficial to develop a diverse financial portfolio consisting of a variety of investment products. Doing so can minimize capital gains taxes and provide higher return on investment. Other smart uses of newfound money include: starting a business; investing in residential or commercial real estate; and paying off high interest loans and credit cards.
It's also smart to set aside cash for unexpected emergencies. Financial experts such as Dave Ramsey and Suze Orman, recommend saving a minimum of 6 months income in high yield savings products. These include money market accounts, money market mutual funds, and U.S. Treasury bills and savings bonds.
Individuals should take time to comparison shop investment and high yield savings products. One of the most trusted sources for comparison shopping is BankRate.com. This website provides detailed information about interest-bearing bank accounts, retirement planning, college funding, CDs and investment products, mortgage refinance and home equity loans, credit cards, and taxes.
Recipients of inherited wealth should also become educated about ways to protect wealth for future generations. Money can be placed in college funds, savings accounts, or irrevocable life insurance trusts.
Funds can be gifted to children or grandchildren whey they reach life milestones such as graduating from college or getting married. Funds can also be gifted through a trust fund or last will and testament.
There's no doubt that money can remove stress from your life. Making smart financial choices is imperative for maximizing inherited wealth. Instead of wasting money on fancy cars and clothing, spend time becoming educated about how to put newfound wealth to work for you so you never have to worry about not having enough money again.
Obtaining inherited wealth can be a blessing, but sometimes causes unexpected problems. When people who aren't good at handling finances acquire lump sum cash they often have no clue what to do with the money. Instead of putting newfound wealth to work they go on spending sprees and quickly end up back where they started.
People who attain riches through lawsuits or lottery winnings can elect to enter into structured settlements that pay dividends over the course of several years. Structured settlements are a good choice for individuals acquiring wealth through personal injury lawsuits because they provide steady income to cover healthcare and living expenses.
Structured settlements are also a good option for jackpot lottery winners because they can maximize payouts and minimize taxation. Individuals that accept lump sum cash for lottery winnings don't receive the full amount and are often taxed at a higher rate because the winnings place them in a different tax bracket.
When unexpected wealth is obtained through inheritance it is important to remember that loved ones gifted money to improve the recipient's life. It is not uncommon for grief-stricken heirs to participate in spending sprees to soothe their sorrow.
Instead of wasting inheritance money on unnecessary luxuries, recipients would be better off consulting with a financial planner. These professionals can provide strategies that expand newfound wealth through investment practices.
It is beneficial to develop a diverse financial portfolio consisting of a variety of investment products. Doing so can minimize capital gains taxes and provide higher return on investment. Other smart uses of newfound money include: starting a business; investing in residential or commercial real estate; and paying off high interest loans and credit cards.
It's also smart to set aside cash for unexpected emergencies. Financial experts such as Dave Ramsey and Suze Orman, recommend saving a minimum of 6 months income in high yield savings products. These include money market accounts, money market mutual funds, and U.S. Treasury bills and savings bonds.
Individuals should take time to comparison shop investment and high yield savings products. One of the most trusted sources for comparison shopping is BankRate.com. This website provides detailed information about interest-bearing bank accounts, retirement planning, college funding, CDs and investment products, mortgage refinance and home equity loans, credit cards, and taxes.
Recipients of inherited wealth should also become educated about ways to protect wealth for future generations. Money can be placed in college funds, savings accounts, or irrevocable life insurance trusts.
Funds can be gifted to children or grandchildren whey they reach life milestones such as graduating from college or getting married. Funds can also be gifted through a trust fund or last will and testament.
There's no doubt that money can remove stress from your life. Making smart financial choices is imperative for maximizing inherited wealth. Instead of wasting money on fancy cars and clothing, spend time becoming educated about how to put newfound wealth to work for you so you never have to worry about not having enough money again.
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