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Financial Planning for Sudden Wealth

Overview

“While sudden wealth can be life-changing, for some it can cause anxiety, indecision, and fear in those who don’t surround themselves with the right people and develop a strategy.”

Up to 90% Of Sudden Wealth is lost in the first year. Don’t be a statistic.

There’s gradual money and there’s sudden wealth. Most of us are used to gradual money—earning an income and building a nest egg over time. It’s a slow and steady process. As our net worth increases over the years, we adapt and slowly become more financially sophisticated. It’s like riding a smooth elevator—you’re going up, but you hardly feel it.

Then there’s sudden wealth. It’s like being on the ground floor of a 60-story building and rocketing to the penthouse suite in seconds. Sudden wealth means getting more money than you’re used to being responsible for, getting it all at once, and often feeling pushed outside of your normal financial comfort zone. Although you’re the same person you were the day before you received it, you are quickly thrust into a new and often uncomfortable situation.

  • I just inherited money – Now what? If you received an inheritance in an amount that is making you uneasy and you are not sure what to do, we can help you get back in control and feeling confident. You need a financial advisor who has your best interest. Not only will we help safeguard your inheritance – we’ll help you deal with the emotional aspects of sudden wealth. Whether you were prepared to receive the inheritance or it came as a total shock – we can help you protect and grow your inheritance no matter where you reside. Here are the questions we answer most.
    • Will the money I receive from the inheritance affect my taxes?
    • I’m getting the inheritance in a trust. Does this mean I can’t use it how I want?
    • The inheritance trust requires a co-trustee. What is their role?
    • How can I best integrate this new money into my existing assets?
    • How much of my inheritance can I afford to give?
    • Should I tell my kids about the inheritance, and if so, how much should they know?
    • What is the best way to invest the inheritance?
    • How do I leave enough assets to my kids that they can do anything, but not so much they can do nothing?
    • Do I have enough money to quit my job, buy a new house, move after now that I have a large inheritance?
  • Protect your lawsuit or settlement. Whether you received an injury compensation in California or a settlement check in Texas – we can help you protect and grow your settlement. Although each situation is different, what is common to nearly all of them is that they or someone close to them were harmed. Sometimes the biggest hurdle is handling the “emotional rollercoaster.” Part of the frustration is the often slow legal system and the seemingly invasive procedures necessary to get a successful verdict. Below the surface for many clients is the pain they have experienced while fighting for justice. Here are the questions we see during the settlement process.
    • Does it make sense for me to take a lawsuit loan on my case?
    • What is a structured annuity and does it make sense to get part or all of my settlement in a structured annuity?
    • What are the tax consequences of the settlement?
    • How much money will I have after paying the attorney, miscellaneous fees, and tax?
    • Will the lawsuit settlement be enough so I can stop working?
    • Are there ways to minimize the taxes I will pay on the settlement?
    • Should I sell my structured settlement or annuity to a company such as JG Wentworth for cash?
  • Bitcoin & Cryptocurrency Wealth. We can work with you to develop a Bitcoin/Cryptocurrency wealth plan that will diversify your assets and help to preserve your wealth. We can help you develop a Bitcoin/Cryptocurrency tax plan to help you remain tax compliant and help you minimize taxes. We can then help you diversify part or all of your Bitcoin/Cryptocurrency assets into other assets including, stocks, bonds, and real estate as well as create a full wealth management plan focused on your financial success. We have the experience and can put together an overall plan for not just your Bitcoin/Cryptocurrency, but how they will integrate into your overall financial strategy. Here are the questions we answer most.
    • Do I need to pay tax on the gain from selling my crypto?
    • How does the IRS treat virtual currency?
    • How can I diversify my investments into other assets?
    • How can I preserve my wealth and help to protect it from lawsuits?
    • Should I update my estate plan as a result of my sudden wealth?
    • Which crypto exchanges are considered safe?
    • Should I consider cold storage?
    • Is there a way I can earn interest on my cryptoassets?