Blessing or Curse? What to do if you suddenly become rich.

It’s a windfall that should happen to all of us. While sitting at the dinner table, the phone rings and the person on the other end of the line tells you something shocking. You’re filthy rich!

“Holly throw away the leftover meatloaf, we’re worth millions!"

After you go through a full range of emotions about this, realize that no except other instant millionaires will sympathize with the fact that this is a difficult problem. You should realize that being flooded with a sudden fortune, whether earned or inherited, can be highly stressful and sometimes even traumatizing.

In the process of dealing with your wealth, leading financial experts suggest taking steps to reduce your stress and increase your ability to make good, long lasting financial decisions.

Step 1: Take a timeout.

The first good rule of inheriting money is to park the money. Coastal offers a number of high yielding certificate options Don't do anything with it, and don't make any major decisions about your finances for at least three months. That allows time to get one's bearings and make plans.

Step 2: Get organized.

Go through your assets and debts; pay any taxes and high-interest debt. Review your insurance coverage. Think about how you're going to live while you're in this planning stage.

Step 3: Figure out your bottom line.

Research your situation until you know the answers to these five questions:

* What is your net worth?

* What is your income?

* What are your fixed expenses?

* What is your tax obligation?

* How much is left over?

Step 4: Know your priorities.

Keep asking yourself questions about what you want to do, how you want to live, and what is important to you. Do you want to live in a cabin in Montana? Do you want to pay for all your children's educations? Do you want to engage in more philanthropy? Wait it out, get your bearings, pin down your priorities.

Step 5: Assemble a financial team.

When the emotions have subsided and you've given yourself some time to fully grasp your new financial situation, then it's time to enlist the help of an advisory team. For the suddenly wealthy, that can mean an accountant, a financial planner, an investment adviser and an estate attorney. You may also want to find a counselor or wealth psychologist.

Contact a Coastal Financial Representative today! »