You just won a lawsuit or are potentially thinking about slipping in a Walmart to win millions of dollars. What do you do with all the money you win?
What about Taxes?
Simple explanation: This lets you know how much money is really yours. Next thing you know you go out and spend a million thinking you have a million then you get a tax bill for 300k. - Depends on the suit if its Personal injury or property damage theirs no suit. Example, my friend his a cook.
Who do you need? _ Now I know everyone in your family even 12th cousins will all of sudden want to talk about the old days that never happened. - But you really need two people now, that’s a financial Advisor and Tax Professional, with these two people on your team you’ll be better off than with you moms idea to start a grocery store that just sell grocery bags.
Annuity Vs One-time payment An annuity is getting you money in payments over a period of time One time is just getting it all at ones. Now there are some tax implications, but I also understand that some people need the money asap to handle their business.
Story: talk about your friend and how he got a lawsuit recently, and now he can't figure out what to do. And seem to be talking advice from the wrong people.
How to invest lawsuit money or Settlement Money
1. Decide what you want. Do you want to keep working or do you want never to work again. - Rule 1: You cant retire from a sum of money, but you can retire from the sum of money that money makes you. - Rule 2: If you want to keep working then keep the same lifestyle, don’t change a thing and have that money keep growing either with a highyield savings or investment account. 2. Hire Professional help that wants what you want. - Rule 1: Once you have money, everyone will all of a sudden be an investor. Only invest with people that are proficient in what they say and in what you want. Example, my uncle wants to start nail salon, and he never has painted or seen a nail painted ever, don't invest in that business. - Rule 2: Never go with the first Choice. When highering a financial advisor or accounting always shop around and compare prices and then ask why they are so high. 3. Time to invest - Rile 1: No need to take unnecessary risk - Rule 2: Diversify (Omg bitcoin in losing money I'm going to jump in now, and make millions. Don’t speculate invest into sure things with a long track record - Rule 3: Spend the interest not the capital 4. Solve Problems ( Only ones you solve your own problems first) - Rule 1: if you have debt, have the interest pay for it, don’t use your physical money to erase it - Rule 2: Create an Emergency fund, at least 6 months of expenses - Rule 3: Invest in education, you probably never had this type of money, and you want to make sure it doesn’t go… so learn more about money management. 5. Enjoy Yourself - Rule uses the interest from investments to enjoy yourself and only around 5% - Rule 2 Help family - Rule 3 Stay below your means always
Tips; Benefitury, will and so on. Don’t forget does
Bonus: What would it do?
1. Hire an accounting and financial advisor after a lot testing 2. I would still keep working and probably not touch the money for personal use 3. I would Diversify the cash into Stocks, Bonds, Real estate, cash, commercial real estate, and also continue to grow my business. ( but I would only invest in what I know after running the number and make sure it's profitable.) 4. Id uses the interest to pay off debt, help family members but only through educations, I don’t like handouts. 5. I would take a 2-week vacation to Africa and do some angel investing in startups, with the interest money
