By: Robert Child
Bobbin for Dollars and Sense is written by Robert Child, President of Boca Raton-based financial company, Child Group Wealth Management. Bob is known for his common sense perspective. He understands how to think and act during critical times. Few of today’s active financial advisors have lived through the NYC Bankruptcy Crisis of 1975 or the Washington Public Power Supply System debacle of 1983. Bob believes both financial catastrophes have strong similarities to today’s economic quagmire. When economic times and financial markets were tough, Bob was there and learned from those financial tragedies, first-hand. Advising clients for almost 40 years, Bob has a team of seasoned and disciplined professionals working aside him servicing retirees and soon-to-be retirees, for over eight decades, combined, by carefully assessing the personal needs and financial goals of their clients. For more information, visit www.childwealthmanagement.com
I just received a seven-figure inheritance from my late aunt’s estate. The inheritance is the largest sum of money that I have ever handled. I would like to make sure I have a good plan in place to manage this inheritance. What do you suggest?
You are wise to be cautious and not give into the urge to spend and shrink your inheritance to nothing. A little planning will go a long way toward making the most of your money.
In many cases, receiving a large sum of money carries a “price tag” in terms of taxes. Although income taxes generally are not due on inheritances, there are exceptions. (e.g. for withdrawal from an inherited IRA). So the first thing you should do is find out what the tax consequences will be. Next, put together a sound, long-term strategy for investing and spending.
Sit down with an experienced financial advisor and identify your needs and investment goals.
What is your current financial situation?
What is your risk tolerance ?
Age is also a factor to consider.
Since your wealth has increased substantially, you will also want to review your estate plan. You may have an opportunity to control estate taxes and you will want to make appropriate provisions for your family.1
Receiving a large sum of money can be thrilling, but it can also be overwhelming. Having a plan for handling the money can help ensure that wise financial decisions are made. Bobbin’ for Dollars and Sense is based on a hypothetical situation. (The solutions we discuss may not be appropriate for all investors.)
Securities offered through vFinance Investments, Inc., Member FINRA/SIPC. Child Group Wealth Management (CGWM) advisors are registered with National Asset Management, Inc., a SEC Registered Investment Advisor and affiliate of vFin. Accounts are carried by National Financial Services LLC, Member NYSE/SIPC, a Fidelity Investments company. NAM and vFin are not affiliated with CGWM.
1 The general information in this publication is not intended to be nor should it be treated as tax, legal, or accounting advice. This publication is an advertisement prepared by Child Group Wealth Management.