What would you do if you inherited a large sum of money or at some point in time you were given
a large sum of money. How would you manage that? How do you manage a large sum of money in a way
that not only leverages the wealth, preserves it for generations to come
and continues to leave an impact throughout your family.
In this video, I'm going to walk you through five things you can do if you come into a large sum
of money to make sure you manage that well and it really maximizes the gift that's been given to you.
Before we go into our tips you have to understand source determines strategy. How you got this money
will determine how you spend this money. For example, if you sold a large piece of real estate
that was gifted into your name. You would do a 1031 exchange if you were smart and make sure you did a
1031 exchange into another property so you didn't have to pay all the tax on that money. Because with
the property transferred to you is also paying tax on all that money. So, if you're selling a big piece
of property or selling a business it changes your strategy on what you do with that large sum of
money. Now, if you inherit a large sum of money and somebody passes away and leaves you a large sum
of money to manage then it changes your strategy a little bit and a little bit different people come
to the table to give ideas and to help manage that money. The first thing you want to do is make sure
you take it slow. Take a deep breath after you get this money and make sure you make decisions
slowly. You not only want to think slowly and make decisions slowly. You want to make
sure you consult trusted people. Because a lot of times when people get large sums of money
a lot of times scammers tend to show up and a lot of times people get scammed out of large sums of
money and they end up with not a lot of money at the end of it. So you want to make sure you take
it slow think slowly make really really methodical decisions and have a lot of advisors at the table,
and a little bit later in this video I'll talk about some of the advisors you need to have at
that table. But make sure you take it slow, take a deep breath and make sure you make decisions
based on where you want to be not where you are right now. One of the biggest struggles of
inheriting a large sum of money is a lot of times our mindset isn't ready for it. So let's say you
have a mindset you make $50,000 a year very modest income and all of a sudden you inherit seven
figures. You've never had seven figures in your life and maybe even have never earned that in your
adult life over your entire job career. How do you manage it all at once? This is why having people to
the table that can help you and taking it slow is important. A lot of times our mindset has to
catch up to managing that amount of money rather than where it's at. Because if I'm managing money
in the millionaire status when I'm making 40 to 50,000 a year I can make some very bad
decisions. Because you don't want to make 40,000 dollar decisions managing 6 million
dollars. That can be a disaster and that's why you wanna really make sure you have trusted advisors
at the table. While you're thinking slow. Do you invest it? Do you spend some of it? Do you save it?
Do you put it all in a bank account? Do you put it in an IRA for your children? What do you really
do with this money? The wealthy would do this. They would invest most of it, live on some of it,
and give away a lot of it. The reason it's worded that way is they invest a large chunk of it. They
contribute some and they have a little bit of fun and that's exactly what you should be doing with a
large sum of money. You should place most of it in something that can multiply itself usually in the
80 to 90 percent range. Then you want to take some and give it away and then you want to take some
and have a little bit of fun. Go on that vacation you've always wanted to put a little money away
for your kids college fund. The idea is that when you get a large sum of money. You want to invest.
You want to give and you want to play. But thinking slowly gives you some time to methodically think
through what the right numbers are for you. The second thing you want to do is think long term
don't think today. Think of where you want to be with this money in 5, 10, 15, years not in 5, 10, 15,
months. Because the truth of the matter, you do not want to make emotional instant decisions with the
sum of money that can set you and your children up for life. Depending on the size of money that
you're managing. So make sure you make long-term decisions. So you certainly want to take some
and have fun. Because if you can't do that what in the world is the point in having it in the first
place if you can't take some and have a little bit of joy. Because part of being wealthy is spending
money on things that matter. Use some of the money to buy an RV you can travel with and have fun with
your family and create memories with. For me and my wife we've always said it's more important for us
to do stuff than have stuff. So for us, experience is more important than material. So we'd rather go
and visit people and go around the world and go see things and experience things
than have another boat car or addition on the house, that's just us. But you have to do what's
valuable to you but have some fun and a lot of it. Part of thinking long term is you have
to remember, you're not making decisions for just you. You're making decisions for your children and
who will likely be the beneficiary of this money when you pass on. The idea is not to spend it all.
The idea is to maximize it all. Of course, have some fun of course give some money away. But to invest
that money so it builds and grows. So, generations to come continue to feel the impact of your good
choices. My wife and I don't have children so we've thought about this a lot. Who is going to be
the beneficiary of our real estate and how are we going to impact and as we thought through that we
want to make decisions today that impact not only our families but the communities we're passionate
about and our church for years and years and years to come. You're making decisions not just
for you but for your children and grandchildren and maybe even their children. The third thing you
can do in managing a large sum of money kind of goes without saying but you want to eliminate all
high interest debt. If you have some high interest debt credit cards or high interest business loan
or hard money loans that are really high interest. Get those knocked out so you're no longer paying
high interest on money that you have since now you've been gifted with this money. So, of course,
knock out all that high-interest stuff remove that noose from your neck and now you can start
to live free and when I say kill high interest debt. I'm not necessarily talking about your house.
If you have interest at five percent below leave that alone and here's why. Wherever you invest it
you're gonna make more than five percent. So if you pay off your debt it's costing you whatever
the difference is. So if you invest in real estate you make eight percent and you pay your house off
and it was five you're losing three percent on your money that you paid your house off with. So
it can actually cost you money to pay your house off. So when I say high-interest debt I'm talking
about hard money loans, high-interest credit cards, and things that really are in the teens
of percentages on your money. Meaning, if you're paying 15, 16, 17, 18, on specific money get that
stuff paid off now. Before we go on to the next tip make sure you subscribe to the channel. On
this channel we talk about real estate investing business and how to maximize complete financial
freedom. This is a great place to learn how to invest that money to really multiply it grow
that money and create more financial freedom for generations to come. So make sure you subscribe
and join our family. The fourth thing you want to do is meet with multiple financial advisors
and there's a couple things with meeting with financial advisors that you need to be prepped for.
Number one, never meet with a financial advisor that's managing less personal money than you
have. I'm not talking that they're managing enough money for other people but they actually have the
same amount of money you're asking them to manage. If I'm asking them to manage 5 million I want to
know they're managing 5 million of their own money. It tells me they know how to manage this
level of revenue. I don't want a financial advisor that's managing my money that I'm their guinea pig
at managing this level of money. So you want to make sure you're working with an FA that
really understands managing the level and kind of money you're having them manage. So, the first
question I ask is, "How much personal money are you managing yourself?", and they'll usually tell you
how much money they're managing for their clients and I say, "I totally get that. How much of your own
personal money are you managing?", and I know that sounds like a very very personal question. But I
tell them right up front, "The truth the matter is I don't feel comfortable working with a financial
advisor that isn't managing this level of money for themselves. Because I just don't feel like they
understand the ins and outs of this level of capital", and that again very uncomfortable but
very important to protect and preserve the capital you're investing and the fifth thing you can do
to manage a large sum of money is invested in real estate. It is the best way to maximize and multiply
this kind of money because not only unlike the stock market are you going to get cash on cash
every single month. But you're going to be able to leverage that forced appreciation and when the
property appreciates you're going to get a higher multiple. You're going to make 10 -5 sometimes even
20 percent yearly return on investment by hitting it in real estate rather than parking it all in
the stock market and making six 7 or 8 percent . Get it in real estate. It is the best
place to park large sums of money in order to be multiplied and the best way to invest that money
is in a syndication. A lot of people that invest in apartment buildings will raise private capital for
those apartment buildings. You can be that private capital and you can own up to 70 sometimes even 80
percent of a deal and you don't even have to do any of the work. Somebody else does all the work
they're just using your money. It's a great way to leverage and manage your money so that
you see it grow every single month. If you're interested in having a call with our team on how
to place this money into one of our syndications where we're buying real estate continually. Go
to titaniumcapitalhq.com that link will be in the description and you can book a call with our team
and i will actually hop on the phone with you personally and talk with you about how to place
this money and make sure it's preserved inside of an asset that gives you cash every single month.
But also grows significantly over time. So go to titaniumcapitalhq.com and I'll tell you about
some of our upcoming deals and how we can possibly partner and get your money working for you quickly.