What To Do When You Come Into A Million

Coming into a million happens to be a dream for a lot of people. But those who do come into a sudden windfall confirm that it is not exactly roses and confetti. Not least, the kind of problems that comes with it.

The most important thing about sudden wealth, whether you inherit it, win it, or make it, is not what to do with it but how to ensure it fits smoothly into your current life without wrecking it. Call me biased, but even as a wealth mentor I’ve always believed that money should fit in smoothly with your life, and not take over, or wreck your life.

So what do you do with your sudden windfall?

1. Firstly, consult a good tax attorney to explore what trusts to set up for your dependants, if any, and how best to protect yourself and future income from predators, such as ‘Uncle Sam’. Seek the best tax attorney; you can afford it.

2. Put a certain portion of the money, about 25% into a diversified portfolio of high interest savings accounts and bonds of varying maturities and grades, that will provide the highest after-tax yield.

3. Buy a bigger house, big enough to ensure that the cost of maintaining it will not be a strain on the income from your bond portfolio.

4. Put a portion of the money, about 25% into a diversified portfolio of selected stocks, shares.

5. Invest most of the rest say another 25% into a well-planned investment property portfolio of buy-to-let residential properties, or commercial properties, whichever suits you best.

6. Make or update your will to reflect your change in circumstances.

7. Now relax and enjoy yourself and forget about the whole shebang. Review your investments once a year, and make changes only when necessary.

This type of structure must give you peace of mind, security and a good residual income for years to come.

That’s what I would do if I came into a windfall today, and ...because of my personal beliefs I would also give away 10%.

What else would you do? You may leave your comments in the comments box here => 'Leave A Comment'

In the meantime life is not about wishing and hoping. Your best bet is to start practically planning for your future wealth while you wait for the million to drop from the sky.

More wealthy people today concede to the fact that the self-satisfaction and sense of achievement that comes from making your first million yourself is incomparable. At the very least, it is a far better way to spend your time than waiting and wishing. Much more fun than simply aspiring!