QUESTION:
I’m going to inherit approximately $4.1 million dollars from a relative. After all taxes are paid, what is the best way to invest or spend the money? I’m a 24-year-old single woman living in the tri-state area with limited financial knowledge, $10,000 in debt, and an interest in traveling the world. While I absolutely want to ensure that this money lasts for a long time, I’d also like to spend some of it now.
ANSWER:
I send you heartfelt condolences at the loss of your relative, take time to grieve, take time to heal. To inherit $4.1 million inheritance is no small amount. In the hands of someone with limited financial knowledge you are wise to be cautious, careful and wise. I applaud you for seeking information and knowledge. You will maximize gains and minimize losses with a well thought out strategy.
Treat your inheritance as if you were the CEO of a new company. Utilize your Board of Directors (Accountant, Financial Advisor, Attorney) to collaborate with you as trusted Fiduciaries about your goals. Your money inheritance will grow by being be carefully nurtured. With discipline, you can create a financial scenario that will benefit you long term, 10 years, 20 years, and 30 years.
If travel is part of your master plan, state this clearly, allow for this luxury, plan and build this into your strategy. Learn from others to be savvy. Study professional business people who have grown businesses, Steve Jobs, Jeff Bezos, Elon Musk, Lee Iacocca. Make the modeling of their successes your opportunity. Be knowledgable about the efficiency of the stock market, the power of strong companies to stand the test of time even during pandemics. A good plan well executed will work to compound your money via equities, mutual funds, ETFs, Index strategies. Be determined and be cautious not to be part of a statistic where money given is easily lost, “rags to riches and back again”. Though this is a statistic, sadly it is a reality.
Much good to you now and in the future.
Take time to create a financial masterplan.
Jan
Jan Attard, MBA, Wealth Management Advisor
J OLIVER MAXWELL, LLC/ Firm # 155656
Tele.# 925-876-1377/ Cal Ins. # OC94026
jolivermaxwell@outlook.com
EmpowerYourMoney 