A reader asked; how to manage instant wealth I inherit from my parents? This is an interesting question and it is related to personal finance and investing. Today’s topic is asset management and wealth management.
You’re lucky if you received inherited wealth. Not all people have the luck to get instant wealth. Many people spend too much time to create huge wealth. If you received inherited wealth from your parents, do you know how to manage it or will you spend them all and enjoy your life to the fullest?
Avoid Wealth Mistakes After You Received Instant Wealth
Work with your financial advisors to learn which tax, financial and legal decision you must take. Create a wishlist before you spend your money. Don’t make any financial commitments and promises to other people. Keep your financial situation in private. Do healthful alternatives when you are stressful about your “financial situation”. (1)
How to Manage Instant Wealth?
The word instant means “fast money”, “quick riches” and “free”. It is not easy to create instant wealth. Many multi-millionaires and even the richest man in the world didn’t get an instant wealth. He didn’t get rich quick, he work hard for it. Bill Gates tested different ways to make Microsoft a successful business. He spent many hours, decades and maybe he spent his whole life that’s why he is now in the top. He is now the world’s richest man.
Hire Wealth Managers
Do you think Bill Gates manage his wealth by his own? No, he hired wealth managers to help him planning what to do in his wealth. So, if you want to manage wealth, all you need to do is to hire professionals to do the work for you. If you will manage it by your own, the chance in losing your wealth is very high. Mismanaging your wealth can make you a broke person again. Don’t rely in your own knowledge. Why not use other people skills to manage your wealth.
Look for Wealth Management Firms
There are many wealth management companies you can try. Choose one and if the wealth management company you choose help you grow your wealth, then stick to that company.
Inherited wealth should carefully spend. Wise men invest money. Rich parents teach their heirs on how to make their wealth growing and increasing. They tell their children that if they died, the children should continue investing, expanding their businesses and always buy assets not liabilities.
Cope with Sudden Wealth Syndrome
Amir Mossanen, Senior Vice President and Wealth Advisor for Wells Fargo said “People who suddenly come into wealth can lose their sense of identity.” This is true because anyone who get instant wealth will change his emotions, feelings and behavior. Thus, his identity affects. It is also true that money can give anyone the ability to change his life and seize every opportunities, however, money can also cause stress, broken relationship and self doubt. (2)
If you want to manage instant wealth, hire wealth managers. If you want to grow inherited wealth, invest it like your parents do. There are many investment options you can try. Invest in the stock market, buy real estate investment properties or start your own business.
Be careful though, instant riches should not spend instantly. A wealth planning is a must. Hire registered investment advisor if you want to know where and how to invest your inherited wealth. You get it wealth quick, you should not lose it quickly!
What about you? If you have the chance to receive $1,000,000,000 one billion dollars from your parents, how can you manage it?
Do you know any other effective ways on how to manage instant wealth or inherited wealth?
Citations and Reference