You Bank Account is Full – You Are Making Visible Changes – How Do You Explain When Asked Where the $$ For These Changes Came From?”
Here is a suggestion:
SO many people say “DebTarHeelGirl, what do you suggest we say to people, when the RV is over and to our friends and family who see any visual changes we are making, as to how we obtained the money to make these changes?”
Written by a fellow currency holder who also coaches in financial matters, here is his advice:
What are you going to say when all of a sudden your bank accounts are full, other see that changes you are making, someone asks you about the new house or houses, a new car/cars or new clothes or you take them out and pay for everything with your “new found wealth…”
What are you going to say to them?
Did you find gold? Did you strike it rich, you seem to have a lot of money now. You must be rich!
I have heard people say “well I’m going to say I have received an inheritance or I made some good investments or I won the lottery”.
To me when you say those things, that means that you have a lot of money or you are very wealthy… now they start thinking you could possibility help them or you could become a target for crooks or bad guys to take advantage of you.
We all want to help others and share our blessing. But we may be giving up our privacy and losing your personal & family life with all this responsibly of all this wealth & money. There is a way for you to keep both.
None of us want people following us around to asking for money or to help them all the time. We want to be in control of that so that we will be good stewards of God’s blessing and help others thru this control and being smart about this.
Here’s my thoughts and plans what I have decided to do and say.
“For a long time I’ve been trying to get a position with a company. (I don’t say trust, I will say a company) I finally got the position it has great benefits and by the way this house is one of their properties and they allow me live in it and this is their car and they allow me to use it. I have a great income. I help them run the company and they pay me very well and provide me with a place to live my car to drive. The main company is located in Florida.”
If I decide to help someone or a family, I or the company (the trust) will donate to a church that I will be working and ask the minister or the pastor to pay for something that person needed or have them give the money to that person.
If the person asks the pastor where did the money come from, the pastor will not say from me or the company (our trust) but he will be instructed to tell them, that God gave it to them and that he (God) ask the pastor to tell the person & their family to come to the church to meet him & thank him in person.
The idea is not to get into a big conversation with people. This deflects the questions of where did you get all this money. The main reason for doing it that way is to not say or show that you have this new found wealth (the left hand) & you still have your life and you do not become someone’s target.
Most families & people’s main job or responsibly is to protect, guard, keep safe, share, give to others and grow this blessing very privately, (right hand, you and God knows) this way it keeps you and your family safe.
Matthew 6:2-4 New American Standard Bible (NASB)
2 So when you give to the poor, do not sound a trumpet before you, as the hypocrites do in the synagogues and in the streets, so that they may be honored by men. Truly I say to you, they have their reward in full.
3 But when you give to the poor, do not let your left hand know what your right hand is doing,
4 so that your giving will be in secret; and your Father who sees what is done in secret will reward you.
That way we grow the church, we help others, and we keep our lives private and we can have a life with our families and live happy ever after.
This is a good article to save as well!
6 Asset Protection Strategies To Shield Your Wealth
6 Asset Protection Strategies To Shield Your Wealth
Robert Pagliarini , Contributor
I focus on the financial and psychological issues of sudden wealth.
Opinions expressed by Forbes Contributors are their own.
Have you heard of the homeless man who was sued for $5.5 million? Of course you haven’t. Lawsuits aren’t filed against those with few assets; they are filed against those with “deep pockets.”
If you have substantial assets or are coming into a windfall from a sudden wealth event such as an inheritance, lawsuit, stock options sale, business sale or from a sports/entertainment contract, there are several money moves you should consider to best protect your new wealth against lawsuits and from others.
1. Increase your liability insurance. Your first line of defense in litigation should be insurance. Call your insurance broker and increase your liability limits. Make sure your personal umbrella liability coverage is for an amount at least equal to your new net-worth. For example, if you are going to receive $3 million from your Aunt Jane’s estate, tell your insurance broker that you want a $3 million umbrella liability policy.
Rates are inexpensive – often $200 or $300 per $1 million of coverage. Bruce Givner, a Los Angeles tax attorney, recommends that his clients have a minimum of a $5,000,000 umbrella policy, and most of them opt for $10,000,000.
Tip: It’s best to make this five minute phone call before you receive the inheritance or windfall.
2. Consider keeping assets separate. Depending on the state in which you live and the source of your windfall, if you deposit the money into a joint account with your spouse, this money could instantly become half theirs.
For some, this isn’t an issue, but for others, this could pose a problem. For example, if you have children from a previous marriage and commingle an inheritance you receive with your new spouse, your children may get less than you expect when you pass away. This problem becomes even more damaging if you are contemplating a divorce.
Tip: If you don’t want your spouse to have ownership of your windfall, talk to an attorney and keep the assets in a separate account.
3. Protect yourself from renters. If you have rental property or expect to invest in rental property after receiving your sudden wealth, create a business entity such as an LLC or corporation to shield your other assets from a disgruntled tenant. By doing this, if your renter sues you for $5 million, they can attack the assets in the entity that holds the real estate but the rest of your personal assets are protected.
Tip: Create a separate business entity for each rental property or consider a Nevada or Delaware Series LLC, which is designed to protect each property within a single LLC.
Recommended by Forbes
4. Review all jointly held accounts. Any money you deposit into a joint account with your children, elderly parents, roommate, or business partner is at risk. If the joint owner files for divorce, incurs a tax lien, or lawsuit judgment, the entire account could be wiped out.
Tip: If there is a need for a joint account, keep the balance as low as possible.
5. Formalize informal partnerships. Business partnerships are ticking time bombs. Why? Just like joint accounts, you are responsible for the actions of your partner. But unlike a joint account, a lawsuit against your partner can put all of your assets at risk.
For example, suppose you and a friend have an informal agreement to partner and provide consulting services. If your partner is involved in an accident on the way to a client, your personal assets can be in jeopardy.
Tip: Avoid partnerships. Form an entity such as an LLC or corporation to provide you with legal protection.
6. Create business entities to shield assets. If you have a small business or do part-time work on the side without having a formal business structure such as an LLC or a corporation, you are operating as a sole proprietorship. The “sole” means it’s just you, so unlike a partnership, you don’t have to worry about a partner’s actions . . . but all of your personal assets are at risk if you are sued.
Tip: Create a business entity that shields your personal assets from lawsuits against your company.
Sudden wealth can be a life-changing experience that can improve your life and the lives of those around you, but only if you keep it. Those with more assets are bigger targets for lawsuits. Don’t let your sudden wealth suddenly get stripped from you.
Protect your assets before you get the windfall and you will sleep a little easier knowing your assets are better shielded.