Transition Planning for Sudden Money
Making Your Wealth Enrich Your Life
Everyone dreams of winning the lottery or finding a suitcase full of money. When a financial windfall event actually occurs, you are excited, thrilled, and a bit overwhelmed. The euphoria can quickly turn to concern, however, as you begin to wonder about the new responsibilities and sudden changes that will soon occur in your life.
When money changes life changes, and it might never change more than when you are challenged with managing a financial windfall. This is the time when you need a trusted advisor who offers financial planning services for windfalls to guide and protect you. For more than 26 years, the financial planners at The Enrichment Group have helped dozens of clients manage the complexities that come with managing sudden wealth as a result of:
- Lottery or Sweepstakes Winnings
- Sale of a Business
- Sale of Real Estate
- Sale of Concentrated Stock Position
- Earned Signing Bonus
Answering Tough Questions about Money Management and Windfalls
After receiving a financial windfall it’s common to have tough questions about money management and protecting your new found wealth. As a part of our financial transition planning services for windfalls, we will help you answer questions, like:
- How much will I owe in taxes?
- How can I protect my new wealth?
- How should I deal with friends, family and charities wanting gifts?
- Should I spend, save, invest or donate the money?
- Should I continue working or should I retire?
Recently Sold a Business
Mike was in the right place at the right time, with the right idea. He built and sold a software company to a major player in the industry. He walked away with millions, changing his life forever. He wants to protect his money, but he isn’t quite sure how to do it. He also needs some help choosing new investments, and understanding the responsibilities that come with his new wealth.
His new financial stature is also impacting his personal life. He has friends, family and charitable organizations asking him for money – and he isn’t sure if he should give or not. He is also about to get married and believes he needs a pre-nuptial agreement, but doesn’t know how to bring up the topic with his fiancée. He’s not sure whom he can trust for unbiased advice.
Did you recently experience a financial windfall?
Contact the Enrichment Group for Advice >>
The Transition Process for Financial Windfalls
At The Enrichment Group, our experienced and credentialed financial planners will guide you through our step-by-step Transition Process, which has been successful in helping clients manage financial and life transitions that happen during a financial windfall.
Step 1: Evaluate
Assess the Situation
What caused the windfall? Who needs to know? How do you maintain your privacy? Will there be taxes due? How will you get the money and where should you put it?
Step 2: Organize
Categorize the Situation into Logical Groups
- Taxes: How much will you owe and how will you pay?
- Investments: What investment decisions need to be made? How much should stay in cash or CD’s?
- Risk Management: What steps need to be taken to protect your new wealth? Do you have adequate liability coverage?
- Practical: How should accounts be titled? Do you need to revise your estate documents?
Step 3: Prioritize
Define what is Urgent and Important
Which decisions need to be made now, and which ones can wait until later? Liability coverage and tax planning need to be prioritized. Do you need to assemble a team of advisors?
Step 4: Stabilize
Deal with the Most Critical Issues
Have we made all critical decisions and taken those immediate steps? Do you have your team in place? Is your money protected?
Step 5: Insulate
Create a Decision-Free Zone
Take time to adjust to your new situation, to make your plans, to think about gifting and sharing. Set aside time to think, dream and assimilate to this sudden change in your life.
Step 6: Financial Life Planning and Investment Management
Start Planning & Living Your Goals
What dreams and goals are possible as a result of your new wealth? How will your life be different now? Will you move? Buy a new car or house? Give gifts to friends, family or charities? Will you continue to work? Is your estate plan current, accurate and adequate or will you need changes? Do you have the appropriate amount and types of insurance policies to protect your new status?
What rate of return do you need to achieve your goals? How much risk are you willing to take? How much risk can you tolerate? Will you need cash flow from your portfolio? What is an appropriate investment portfolio?
If you, or someone you know, is expecting or has received a financial windfall and need a trusted advisor to help protect their wealth, please consider The Enrichment Group. You can give us a call at (305) 274-1600 or contact us online today.