If you have come into a lot of money all of a sudden, such as settlement cash or an inheritance, then you have a few choices set before you. There’s more to receiving money that happens then just being rich all of a sudden. You have to think about logistics as well as emotional decisions and factors including family and friends. Knowing what to do in certain situations is very important to decide before hand so that you are not caught off guard and end up making a bad choice. While reading this article, keep in mind that there is no right or wrong way to handle a situation; there is only what you feel is the right way to go about it in your own heart.
- Family and Friends
You may find that all of a sudden you have a lot of friends, once people find out that you have a lot of money. Or you may hear from family members that have been estranged for decades, just wanting to ‘catch up.’ While you don’t want to become cynical of those around you, it’s a good idea to be wary and set up your list of questions or things to look out for so that if any of the so called friends or loved ones are just trying to hit you up for money, you will be able to recognize it before being taken advantage of.
If you’ve won the lottery or something similar, then the media is going to want statements and interviews. You’ll need to decide whether you want to give those interviews or if you want someone to stand in your place and speak for you. Unfortunately, there is no way to remain anonymous during these times. Decide before hand what you or your proxy will say and keep to the script. The media has a way of changing and twisting their interviews, so make sure that you stay on track no matter what they throw at you. It can be a difficult time as you are going through so many other emotions but try not to let that show publicly. This is why it may be a good idea to have a spokesperson who has permission to speak for you and in your place.
You obviously don’t want to take all the money and hide is under a mattress. The great thing about a lot of money is that it can make a lot of money without you having to do very much to it. You have many options when it comes to investing your money; homes, stocks, etc. Or, you can find a bank with a good interest rate and let your money grow there, it’s entirely up to you. Let your money make money for you. Talking with a financial adviser about what your options are is a good idea once you know how much you will be getting.
- Payments Versus Lump Sum
You’ll need to decide whether you want your settlement cash in payments over the course of the next however many years or all at once. Even if where you are getting your money from does not offer your settlement cash in a lump sum, you can actually sell you payments and get cash for your settlement now. This depends on what your cash needs are, if you want to eliminate debt or make a large purchase or whatever you decide to do. Settlement cash can be received in payments or all at once, it just depends on what you need. If you want cash for a settlement, there is nothing wrong with that, you’ll just need to take the right steps to do so.
There is, of course, more to consider but these four ideas should get you started. Also speak with a financial adviser before making any decisions regarding a large amount of money. You may not be used to dealing with such a lot of money all of a sudden, but your financial adviser will be able to steer you in the right direction. They have the experience necessary and will have your best interests in mind when it comes to all of this. Find one that you trust and you will have a much easier time.