Building a sizable estate is a difficult task, and an accomplishment that you can be proud of. Unfortunately, if you have significant assets, you're also at greater risk for a lawsuit or other action that can decimate those assets. It's easy to be so focused on acquiring wealth and assets that you forget to think about strategies that you can use to protect those assets. This is especially true if you come into wealth suddenly – for example, if you inherit property or a windfall, or if your business or investments take off overnight.
If you have unexpectedly received a large sum of money, you probably feel very excited right now. You are imagining all the things you can do and buy with all of your money. However, coming into sudden wealth can also have its drawbacks. Receiving a lot of money can increase your stress and cause you to do things to lose your fortune. Here are four helpful tips for handling sudden wealth:
Many people do not realize how important it is to plan for retirement because they assume that their finances will work themselves out over the years. Assuming that you will be debt free when you retire is not a smart financial move to make. If you want to be debt free and be able to enjoy your retirement as much as you can, you need to be sure to take the time to plan for it properly.
Reverse mortgages can be very useful financial tools in the right situation. A reverse mortgage lets a borrower get money for the equity of their home while still living in it. Generally taken on by the elderly, the reverse mortgage ensures that the individual has both cash and a place to live. When the borrower passes on, the reverse mortgage company gets the home. But one of the common fears of a borrower is that there may be no way to reverse the mortgage if something changes.
When you first start working, it's often difficult to think about long-term investments, especially when you don't feel as though you earn that much money. Nonetheless, some investments are more profitable if you set them up as soon as you start work, so it's a good idea to set up long-term investments as early as you can. Find out how Roth IRAs work, and learn more about the reasons why working teens should consider this type of investment.