October 19, 2022

When you are thinking about inheriting or receiving substantial wealth in the near future, it raises plenty of financial questions. Prior to receiving these funds, it is best to sit down with a financial professional and discuss all of the most relevant information. This can include determinations over how you want to proceed, and investment strategies among other aspects of your financial plan.

As you think about how you want to support your family or even consider things such as charitable giving, the first step is to develop a clear investment policy.

This helps to serve as a blueprint for you and your financial planner about how you will invest and the roadmap for how assets inside your portfolio will be managed. An asset allocation study may also be beneficial for those intending to inherit or receive substantial wealth soon.

The purpose of this is to identify the return and risk goals appropriate for:

• The tolerance for potential drawdown in the future.
• Liquidity needs of those affected.
• Current assets inside the portfolio.

With substantial wealth, multiple asset allocation studies may be required, particularly if this is family wealth that will influence multiple generations. It can take anywhere from a few months to 18 months to guide the construction of a full portfolio. With these investment strategies and substantial wealth on the line, it is a good idea to consult with a qualified financial professional immediately. This can help to avoid many of the most common pitfalls surrounding the process of receiving new wealth. Set aside a time to meet with an experienced and qualified financial professional today.