Inheriting or acquiring new wealth

Case study: Inheriting or acquiring new wealth

Growing wealth

People come into new wealth typically through inheritance or divorce. It is not uncommon for people inheriting or acquiring new wealth to spend it rapidly and end up no better off than when they started. Consulting a financial planner when coming into new wealth is an astute move to ensure you can leverage your wealth to grow your investments.

Investing wisely after divorce

Marianne was referred to us by her ex-husband John. John was concerned about the large cash payment that Marianne had received as a result of their recent divorce and wanted to know that Marianne would invest it wisely and have enough to live on for many years to come.

Marianne spoke to one of our Financial Planners about her attitude to risk so that we could advise her on investment options to suit her attitude and her financial goals.

Repaying debt

Marianne had taken out a personal loan to pay for a recent holiday. As the level of interest she was paying on this loan was relatively high, we advised her to repay this in a lump sum. Marianne also had several credit cards. We talked about her credit cards and gave her tips on how to better manage her cashflow.

Wills and estate planning

Marianne and John had one adult daughter who was independent and looking to buy her first home. We invited John and Marianne to talk together about their wills in relation to their daughter. As John had set up a trust to provide for his daughter and future grandchildren after his demise, Marianne decided it would be better to give her daughter a lump sum to help pay for her first home with the understanding that this was her daughter’s inheritance. We discussed how this could be done in the most tax-effective manner.

We also discussed Marianne’s plans for buying an apartment to suit her lifestyle and saving at least six months of income in high yield savings products.

Making smart financial decisions

While buying a luxury car might or taking a five-star holiday might help you feel better following divorce or the death of a parent, it won’t provide for the future. Marianne’s sound decisions, added by her Financial Planner means that, with careful planning, she will never have to worry about money again.

StrategyOne Advice Network is an authorised representative of Fitpatricks Prviate Wealth Pty Ltd, AFSL No. 247429, ABN 33 093 667 595 (“Fitzpatricks”).

The information in the above Case Study is of a general nature only and is not intended as a personal advice. It does not take into account your particular investment objectives, financial situation and needs. Before making a financial decision you should assess whether the advice is appropriate to your individual financial situation, needs and objectives. We recommend you consult a professional financial planner who will assist you.

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