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If someone was to become wealthy in a very short amount of time, what is the first thing they should do?
- Thread starter KAMI-SAMA
- Start date
Depending on the amount, if it's low then you celebrate, if we're talking millions here you disappear and tell no one.
Use your lump sum money you got to fund investments that can build up your passive income and cash flow. Like my wife and I have been buying real estate and then converting them to Air BNB type houses. used my money to fund an Amazon based company. Build that cash flow. Talk with an advisor but make sure it's a good and trusted one.
Yeah I used to think about this all the time.
1. Get a financial advisor.
2. Get a financial lawyer to help you set up trust funds and companies and what not.
3. Depending on how much you ended up having, create a list of the most important people in your life and set up a trust fund for them.
4. Be discrete and so on.
1. Get a financial advisor.
2. Get a financial lawyer to help you set up trust funds and companies and what not.
3. Depending on how much you ended up having, create a list of the most important people in your life and set up a trust fund for them.
4. Be discrete and so on.
Each account would only be FDIC insured for up to $250,000. That's why you get a fiduciary, and spread it over multiple, multiple fairly low risk mutual funds, trusts, etc.
Reminds me of this Reddit post on why you're fucked if you win the lottery: https://www.reddit.com/r/AskReddit/...?utm_source=reddit&utm_medium=web2x&context=3
The first thing you would do is put most of it away.
Safe investments. Bonds, Roth IRA, all that stuff. That way you'll see a slow but steady percent returns on that huge wealth. That way you'll have rolling wealth that replenishes itself as you use it, as long as you don't live beyond your means.
The next thing you would do is probably quit your job and move - but not into a mansion or anything. Just a "nice" house in a nice area.
Budget your entertainment each year, and just live a life of enjoyable free time. You don't need to splurge.
Safe investments. Bonds, Roth IRA, all that stuff. That way you'll see a slow but steady percent returns on that huge wealth. That way you'll have rolling wealth that replenishes itself as you use it, as long as you don't live beyond your means.
The next thing you would do is probably quit your job and move - but not into a mansion or anything. Just a "nice" house in a nice area.
Budget your entertainment each year, and just live a life of enjoyable free time. You don't need to splurge.
Also ,are you black or a person of color? Or White?
This is very important. If you're black, or a person of color be VERY CAREFUL where you move to. It can be the difference between life and death. If you're white, move from your old home/apt once word spreads. depending on how much money, (like millions) hire personal security for a few months.
This is very important. If you're black, or a person of color be VERY CAREFUL where you move to. It can be the difference between life and death. If you're white, move from your old home/apt once word spreads. depending on how much money, (like millions) hire personal security for a few months.
This is actually very bad.
Many of the athletes that go broke did so because they outsourced too much.
The most successful tend to watch their money. An advisor is just that, an advisor. You still need to exercise agency.
People (including me) always say this but I wonder what percentage of big lottery winners geuninely move into just a "nice" house and not some mansion
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Hire someone from a reputable firm. They are not really hard to find, although probably expensive.
As a lawyer, I always chuckle when this sorta stuff comes up.
It really depends on what kind of money we're talking about. Most of the responses seem to be in the order of multi million dollar lottery winnings or something.
If it's not enough for you to immediately retire and live out the rest of your life in the lap of luxury, then I probably wouldn't do anything at all, just stick it in the bank (investment funds or whatever) and forget about it.
If it's not enough for you to immediately retire and live out the rest of your life in the lap of luxury, then I probably wouldn't do anything at all, just stick it in the bank (investment funds or whatever) and forget about it.
I think a house kinda like what John Wick had would be perfect. That's probably a $500,000 to $1 million home and it's more than enough.
Sure.
As a black person, or a person of color (not counting white passing minorities), even when rich, if you move into a rich neighborhood there is a chance of someone seeing you, or your kids and calling the cops on you. There have been celebrities who people called the cops on thinking they were "breaking into" their own house. If you jog at night or during the day, etc. You have to do your due diligence on the neighborhood for your own sake and your family's sake. You don't want your son or daughter outside playing, or jogging, only to have the cops roll up on them.
And I say move because once it becomes known (and it will, it always does), people, rather family, "friends", even strangers, will roll up to your home/apt. especially if it was in a normal not so nice area. Personally I'd go to a real nice hotel which doesn't just let anyone wander the halls for a bit as I sort everything out. If we're talking millions. hundreds of thousands, put it in the bank, don't go on spending sprees, invest carefully. I also recommend big firms because they have experience with this thing, not some small time lawyer, no offense to them.
This thread is lame AF. Here's what you do:
BUY not rent a brand new stretch Lamborghini limo and pay like 6 smoking hot super models to party with you and snoop dog for a week straight as you tour New Zealand since it's not on lock down while wearing custom made golden silk Ralph Loren boxer shorts and bribe your way into those night clubs that fill the whole place with bubble bath. Smoke the best weed, drink the most expensive liquor, wave around a platinum coated desert eagle,
Make a rap song and produce a movie.
BUY not rent a brand new stretch Lamborghini limo and pay like 6 smoking hot super models to party with you and snoop dog for a week straight as you tour New Zealand since it's not on lock down while wearing custom made golden silk Ralph Loren boxer shorts and bribe your way into those night clubs that fill the whole place with bubble bath. Smoke the best weed, drink the most expensive liquor, wave around a platinum coated desert eagle,
Make a rap song and produce a movie.
Because the family lawyer being dodgy on the side is such a common theme in movies lol
If I'm remembering right, that fits into my idea of a mansion lol. I think I agree with you though.
There is one flaw in your otherwise perfect plan. ...Who brings the coke??
For sure, yeah. I mean, dodgy lawyers are a recurring theme for decades and there is probably a valid reason for that, but in my experience lawyers are mostly boring and very "by the books" persons.
I don't understand this way of thinking. Why can't I be smarter than a financial advisor?
I can understand a lawyer and an accountant, but financial advisors for people who are capable of research and rational thought?
Look at firms that have the highest profit per partner ratio in the country. Then use a trust and estates lawyer from one of those who went to an Ivy League law school or equivalent who has also been a partner of that firm for at least 10 years.
It's all publicly available information.
Why would you get a financial advisor? They cost a lot and usually can't beat the market. Do what that Reddit post says to do.
do nothing for about a month with it as you get your affairs and finances in order. Also never tell anyone you're rich.
Note to self: Do NOT Google "2 chicks same time" without putting "2 chicks same time office space". Googling that without "office space" on it...you can guess what I got instead of office space images.
My Mom got a big inheritance. I introduced her to financial advisors and lawyers that could help her with family planning. She declined, and five years later no money. One of her biggest regrets was she did not listen to me.
A big, national bank. BoA would be the first place I would turn to. And not like a BoA local branch, but I would find the closest BoA building near me and go through there.
Property taxes forever, is another thing. If you paid cash for a mansion but didn't realize lake access meant the property taxes would be $5k/month alone, and you didn't plan a monthly budget very well, you'd spend all your cash reserves on the real estate and not be able to afford its upkeep.
Meet with a financial adviser. They will help with sector allocations based on your wealth and age
Invest a good portion, save a good portion, set aside a good portion for tax purposes (if it's a recent gain)
don't spend money freely unless you can pay for those things over the long haul. Only look at things that don't have long term expensive costs associated with it
Invest a good portion, save a good portion, set aside a good portion for tax purposes (if it's a recent gain)
don't spend money freely unless you can pay for those things over the long haul. Only look at things that don't have long term expensive costs associated with it
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It can be dangerous (in many forms of the word) to suddenly be sitting on a LOT of money and also to be sitting on that money long term unless the rest of your life somehow adjusts to compensate for that.
I would probably:
-Find out if I can claim anonymously and do that if so
-If not, get with a lawyer or financial advisor and have them inform me on how to claim it the best way
-Claim the money and put it into trusts or whatever the advisor tells me I should do
-Pay off all of my debts
-Improve my living situation ONLY enough that I need and am comfortable with long term
-Calculate the retirement I'd need to maintain that life style
-Lock in that much of whatever I have left of my "winnings" or whatever
-Donate as much as possible of the remainder, as money has a way of attracting bad luck
Result is I'd be debt free, in a much better day to day living situation, and have a big enough emergency fund so that if I can't live off pursuing the things I love doing I could fall back on it.
I would probably:
-Find out if I can claim anonymously and do that if so
-If not, get with a lawyer or financial advisor and have them inform me on how to claim it the best way
-Claim the money and put it into trusts or whatever the advisor tells me I should do
-Pay off all of my debts
-Improve my living situation ONLY enough that I need and am comfortable with long term
-Calculate the retirement I'd need to maintain that life style
-Lock in that much of whatever I have left of my "winnings" or whatever
-Donate as much as possible of the remainder, as money has a way of attracting bad luck
Result is I'd be debt free, in a much better day to day living situation, and have a big enough emergency fund so that if I can't live off pursuing the things I love doing I could fall back on it.
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Interesting, so what are celebs and other wealthy people doing to live in these properties?
I don't think it's about beating the market but just figuring out where to put all of it. I'd imagine most people don't know where to store millions of dollars.
I don't think they DO live in those properties.
Also people like MC Hammer end up needing badly to sell them and nobody will buy; plus I'd wager there's a looming unpaid tax bill on some of those sorts of properties that would need to paid off by the buyer at sale.
Basically, get a financial advisor. Don't give yourself a big allowance, because you don't know how not to spend it all at once and be out of money again. Put it in non liquid form so you can't screw yourself over.
You won't use half the rooms and it's a continuous cost you'd have to pay every month until you sold it. You'd spend a large piece of wealth just to maintain it.