Everyone dreams of falling into a lump sum of money, but for most people, it’s nothing more than that: a dream.
But for Ken from Sacramento, California, things are a bit different. He inherited $50 million from his parents and called into the Dave Ramsey Show for advice on what to do with the money.
After getting over the initial shock and asking some questions, Ramsey began to provide advice.
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“The thing that I teach people to do with all of their income is to balance and use ratios between living, enjoying some of it, in other words, giving some of it, and investing some of it,” he said. “And so I would say, how much of this do I want to systematically give.”
He added the importance of using some of the money to enjoy life, and of course, investing some for the next generation.
Receiving a substantial inheritance, like $50 million, transforms your finances, offering both vast opportunities and significant responsibilities. Managing such a windfall lies in strategic planning and alignment with your values and future aspirations.
Initially, avoid rushed financial decisions. The thrill of inheriting a large sum can tempt you into impulsive spending or investments that jeopardize your financial stability. Give yourself time to understand and adapt to your enhanced financial status.
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Crafting a detailed financial plan is also a must. The plan should cover budgeting, investing, estate planning and tax considerations, customized to your situation.
And of course, investing makes sense. Opt for a diversified portfolio to mitigate market risks and inflation, aiming not just for wealth growth but its preservation. Estate planning is equally important, ensuring your assets are protected and passed down as you wish, securing your legacy for future generations.
Consulting a financial adviser can provide peace of mind after receiving an inheritance. Financial advisers offer personalized investing strategies, create effective budgets and work toward long-term financial goals.
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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
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This article ‘Who In The World Left You $50 Million’ — Dave Ramsey Shocked By Massive Inheritance originally appeared on Benzinga.com
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Source: finance.yahoo.com