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After Receiving A Windfall Like RV Success, Will You Be Worse Off In Future?


Muhammad
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The saying A great fortune in the hands of a fool is a greater misfortune is true! Will you be the fool or genius after you grabbed such windfall from Iraq? Allow me to advise some fools right here about being too generous in money matters at the wrong time and at the wrong place. In the past, I personally had a couple of friends who after receiving their windfall yesterday, one lost it in about one month's time whilst the other lost it in six months' time and they both became equally worse off as one owed many relatives and friends quite a lot of money he borrowed and the other owed some loan sharks hefty sums of debts like leeches overly sucking his bood. All their siblings who received a share of windfall disappeared out of their side when they came to beg them for some financial help to clear some debts to get on with life a tiny bit and such ingratitude was what they got in return for being too generous in the first place. We must keep aside sufficient cash in our bank as an up front payment for our own future medical rescue in case health insurance policies aren't sufficient to cover our medical costs further or whatever unforeseeable matters coming ahead. What other growing incapacity is expected with increasing age which may wipe out all our windfall supposedly left for our financial freedom? Please rethink about it rather carefully after you may receive the windfall from Iraq in future, if not too soon. A great fortune in the hands of a genius is a greater fortune not for himself alone but for all his most loved ones at home and true friends around for a long time if health permits.

What To Do With A Financial Windfall

By Jill (Staff Writer), on November 1, 2009

We’ve all heard the stories of lotto winners who win millions, think they’re set for life, and then go broke within a decade. Or people who inherit large sums of money and end up in financial ruin, family feuds, or both. The word “windfall” can mean different things to different people — if you’re young and drowning in debt, even $10,000 can do wonders for your quality of life. If you’re older with no debt and decent retirement savings, it will probably take a lot more to really change your life. Whatever the amount is, here are 12 things you should consider if you receive a large financial windfall.

1. Say/do nothing

When you first receive the news, keep it to yourself for at least a few days. Tell a spouse, but that’s it. Don’t quit your job, don’t shout from the rooftops, don’t give $1,000 to everybody you know. Just take a deep breath and think about how you might want to use the money. This is especially key if your windfall is the result of an inheritance or life insurance policy — take the time to grieve your loved one, and put the money in a savings account until you can deal with it with a clear head.

2. Take offers to help, or “great business ideas” with a grain of salt

If word of your windfall gets out, “financial experts” will turn up out of nowhere. Ditto for friends, acquaintances, or even perfect strangers just dying for investors in their new business. Say no to everything the first time around. If any of the offers to help are legitimate, the person will keep trying. And if any of the business ideas were that good, they probably would have been done already. Don’t part with any of your money until you have a chance to evaluate your options.

3. Set aside as much as necessary for taxes

Depending on where the windfall came from, it may be taxable. Lottery, (legal) gambling, or other prize winnings are taxed as ordinary income. Life insurance proceeds are generally not taxable, while other inheritances may be subject to income and/or estate tax. If necessary, hire a tax advisor to help determine how much tax you will owe. Set aside that amount immediately so that you have it when the time comes to pay.

4. Use a small portion to do some good

If there’s a charitable cause you really believe in, it would be great to donate a portion of your windfall to that cause. You might even want to donate to your church. If you truly want to and can help individual family members or friends, do so. But beware that helping one might mean others asking for handouts. Limit your assistance to those who truly need it and can keep it to themselves. And don’t feel the need to give more than a small portion of your money away, unless you really want to and are otherwise in a position to do so. Your own needs and those of your immediate family must come first!

5. Use a little for fun

When you receive a financial windfall, it’s ok to use a small portion for fun (say, no more than 10%, though it depends on the total amount). Take a nice vacation. Treat your wife to the spa day she’s been asking for, or yourself to some new golf clubs. If we’re looking at a windfall of $5,000 and you’re a grad student on a shoestring budget, this might just mean treating yourself and a date to dinner and a movie! Whatever your mini-splurge is, plan for it, and make it a one-time deal. No fancy steak dinners every other night, with lobster on the nights in between!

6. Maximize your emergency fund

If you don’t yet have at least six months of expenses saved, put at least that much aside now in a high-interest savings account, short-term CD ladder, or money market fund.

7. Don’t plan to live off of the money unless you can truly afford it

Depending on how old you are, and unless we are talking about a really hefty sum of money, it is doubtful that your windfall can replace your income for the rest of your life. Don’t quit your job or substantially increase your standard of living unless you are really certain that the money will last. In order to be really certain, it’s probably best to hire a professional to run the numbers, which brings us to the next tip.

8. Hire a trusted financial advisor and create a plan

At some point after you received your windfall, it is probably a good idea to get a professional involved to help you evaluate your options for future, spending, savings and investments. If you have a financial planner already, ask him if he is comfortable advising you on such a large sum of money, and if he can provide references from current or former clients.

If not, ask for a referral to another planner. You want a financial planner who specializes in lump-sum management or high net worth clients. If you don’t have a current advisor and you’re not sure where to start, discreetly ask a trusted (financially comfortable) friend or colleague for a referral. You can also turn to the Garret Planning Network for a list of fee-based advisors in your area.

When dealing with a large sum of money I would definitely recommend a planner with an hourly rate rather than one that charges a percentage of your assets or a commission on investments. Your financial planner will help you create a plan for the rest of your money — I discuss some possible options in the final four tips below.

9. Pay off debt and other obligations

Pay off as much debt as you can, including credit cards, student loans, auto loans, and even your mortgage if you can afford it. Especially if your windfall comes from a life insurance policy on your spouse, make sure that you set aside enough to cover all the expenses that your spouse would have paid for, such as mortgage, tuition, childcare, etc.

Additionally, make a commitment to stay out of debt — if you can truly afford to buy a fancy new car IN CASH with your newfound wealth, that’s one thing. Financing your dream car because you have a lot of money to pay it off with “later” is quite another.

10. Use a portion to fund short-term goals

If you were already saving for multiple short-term goals such as a new house, a large vacation, a wedding, car, or continuing education, you may want to fund some or all of those goals with your windfall. A financial planner can help determine what you can afford and on what schedule.

11. Allocate portions to long-term goals

If you have longer-term goals like early retirement, paying for school for your kids or grandkids, making large charitable contributions, or moving to a different state or country, begin planning for the payment of those items now. A professional can help you determine a time horizon and appropriate saving/investing strategy for each one.

12. Invest the rest wisely and use only the income until retirement or later

When all your goals are planned for, and the rest is truly yours to spend as you wish, consider investing the remainder conservatively (say in a bond fund or treasury bills) and living off the income. Once you reach retirement, you can begin drawing down the principle as needed. This strategy will help you make the money last over your life expectancy, and maybe even leave some as a windfall for your own beneficiaries.

I’ve listed 12 things here that you might do with a windfall — I’m sure there are more. The bottom line is that you should be as careful with this newfound “free” money as you would with money you worked hard to earn. Used correctly, a windfall can push you dramatically forward on your path to financial freedom. But if you get caught up in buying lots of things or helping too many people, you could end up worse off than before. Regardless of the specific course you take, remember to make well-thought-out decisions and involve your immediate family and a professional where appropriate.

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life insurance policy, prize winnings, inheritances, windfall, friends acquaintances, family feuds, financial ruin, financial windfall, life insurance proceeds

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I will have to say, that is some sound quality advice. I have not always agreed with opinions that you have posted in the past but thats just me, i usualy take all with a little bigger grain of sand than most and come to my own conlusions after sufficient research. I too have had relatives, who after appearing to be financially set, have somehow ended up in bankruptcy. The ease with which that can and does happen is unfortunate, thanks for the reminder.

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The saying A great fortune in the hands of a fool is a greater misfortune is true! Will you be the fool or genius after you grabbed such windfall from Iraq? Allow me to advise some fools right here about being too generous in money matters at the wrong time and at the wrong place. In the past, I personally had a couple of friends who after receiving their windfall yesterday, one lost it in about one month's time whilst the other lost it in six months' time and they both became equally worse off as one owed many relatives and friends quite a lot of money he borrowed and the other owed some loan sharks hefty sums of debts like leeches overly sucking his bood. All their siblings who received a share of windfall disappeared out of their side when they came to beg them for some financial help to clear some debts to get on with life a tiny bit and such ingratitude was what they got in return for being too generous in the first place. We must keep aside sufficient cash in our bank as an up front payment for our own future medical rescue in case health insurance policies aren't sufficient to cover our medical costs further or whatever unforeseeable matters coming ahead. What other growing incapacity is expected with increasing age which may wipe out all our windfall supposedly left for our financial freedom? Please rethink about it rather carefully after you may receive the windfall from Iraq in future, if not too soon. A great fortune in the hands of a genius is a greater fortune not for himself alone but for all his most loved ones at home and true friends around for a long time if health permits.

[ATTACH=CONFIG]298[/ATTACH] the pic speaks for it's self :(

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Please take note of the 12 key points in the list and send it to your desktop as a

reminder once you acquired RV success. You would be surprised now you remember them in your head whilst you have nothing to feel so excited about but when you grab the windfall you may forget totally about what the 12 key points advised because you may be blinded by such excitement you have never experienced before. As much as love is blind to lovers who love at first sight, money is equally blind to winners as well who grab any windfall especially for the first time. Fools are fools but excitement can even kill the geniuses, if they aren't patient. Patient must be learned, not taught. Am I right?

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Regardless of who we are, Christians, Muslims, Hinduists, Buddhists, Jews, free-thinkers or whatever, we must coexist with one another as one mankind, one world and one mindset towards global success, so that we can live a contented healthy life for a long time. If one does good, it is his or her reward here and in the hereafter. No one has the rights to take a life of others unless he is a dangerous criminal to society. But we have freedom to choose our own belief and accept it as our way of life. His disbelief is up to God to decide. We mustn't play God to be better than God in judgement to kill anyone who may disbelieve us. This is totally wrong! However, let us be as one people to guide all those newbies in this blog site to the right way and share the knowledge of IQD as much as possible. Human blood is all of a colour. Thank you for reading.

:wave::lol::shakehead::wave:

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Regardless of who we are, Christians, Muslims, Hinduists, Buddhists, Jews, free-thinkers or whatever, we must coexist with one another as one mankind, one world and one mindset towards global success, so that we can live a contented healthy life for a long time. If one does good, it is his or her reward here and in the hereafter. No one has the rights to take a life of others unless he is a dangerous criminal to society. But we have freedom to choose our own belief and accept it as our way of life. His disbelief is up to God to decide. We mustn't play God to be better than God in judgement to kill anyone who may disbelieve us. This is totally wrong! However, let us be as one people to guide all those newbies in this blog site to the right way and share the knowledge of IQD as much as possible. Human blood is all of a colour. Thank you for reading.

:wave::lol::shakehead::wave:

k, uhm, no you dont have to coexist, you dont have to have mercy on the so-called newbies(most of them are probably using it as an excuse to hide something anyway),, globaldy gobblty what does this have to do with dinar rumors, please take this to the forums 101 section,,moderator please save us

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