How To Prepare For A Financial Windfall So You Don’t Lose It All
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Surprising solicitations
Sometimes loved ones won’t just ask for a handout. Maybe they’ll ask for an “investment.” Friends and family often go to someone newly wealthy with their business ideas, asking for an investment. “You don’t have to make decisions then and there,” Washington says. “Don’t say yes out of emotion. Any financial decision should be made with your trusted advisor. You don’t even know the implications from a tax perspective that could bite you in the butt.” If someone is trying to rush you into making a decision about investing in their business, or won’t fully answer all of your questions, walk away. “Anyone asking you to partner or invest should answer every single question. It doesn’t matter how long you’ve known them or what you feel about them,” she adds. “It’s your responsibility to do your best to make logical decisions.”
