Our Expert Certified Financial Planner From Access Wealth Helps You Manage Your New Windfall
(East Hanover, NJ, JULY 24, 2023) – You’ve suddenly come into a windfall. That’s the good news. Now, what do you do with it?
According to Leo Chubinishvili, CFP, at Access Wealth in East Hanover, NJ, coming into a large sum of money can be overwhelming and requires careful planning to effectively manage it based on your objectives in terms of your time horizon and risk tolerance.
This includes taking the following steps:
- Understand what you have. For example, if a relative has left you a great deal of money, you need to fully understand the terms of the inheritance. The inventory of the assets, which may include real estate, financial accounts, personal property, business or even debt must be analyzed and understood. In some cases, assets can be inherited outright, or they may be part of a trust, which requires understanding the terms of the trust. In most cases, this means working with legal counsel that specializes in estate law to help you understand the conditions and details of the inheritance. Learn effective strategies for resolving probate-related disputes and ensuring a fair distribution.
- Hire a financial advisor. A good financial advisor can help guide you through the process of planning and managing your newfound wealth. This includes evaluating your current financial situation (by analyzing your existing finances – including your assets and liabilities, cash flow including your budget, retirement accounts, personal and real assets, review insurance and estate plan etc.); setting financial goals (by identifying short- and long-term financial goals that may include paying off debt, buying a home, starting a business, retiring, or giving to charity); and developing a financial plan (that will help you reach your specific goals, and may include investing the funds in a diversified portfolio with stocks, bonds, mutual funds, alternative assets etc.; establishing an emergency fund; and acquiring adequate insurance coverage).
- Update your estate plan. Receiving a large amount of money could significantly impact your estate plan. Consult your financial planner and attorney to update your will, trusts, and beneficiary designations as necessary. Based on your new net worth a more complicated estate plan may be necessary, such as creating revocable or irrevocable trusts.
- Plan for Taxes. You need to know about the tax implications. Work with a tax advisor to understand these and plan accordingly.
“Every individual’s financial situation and goals are different, so it’s important to seek professional advice tailored to your specific circumstances,” he said. “Too many windfalls have slipped through people’s fingers because they didn’t take this advice.”
If you would be interested in speaking with Mr. Chubinishvili or need additional information, please contact Steve Clark, Andover Communications, SClark@
