Whether it's finding your dream job, signing a contract to play sports professionally or winning the lottery, if you've suddenly found yourself having a lot more money than before, you have reasons to celebrate. But you may also have reasons to worry. Will you be able to make wise decisions with the money? Who can you turn to for advise? What should you be doing to ensure a better future?
To help you find the answers that you need, here are 5 people you should talk to about your new money situation.
If you don't have an insurance agent already, it's probably time to get one. You'll need to make sure that you, your assets and your family are sufficiently covered in the event something happens to you. Since your income has risen, it's likely that your expenses will as well. For this reason, you will likely need to increase life insurance coverage if you have anyone depending on you for income. Home insurance, accident insurance or general liability coverage may also be good plans to look into.
To plan for the future, it's a good idea to begin finding ways to invest your money so that it can grow. A financial advisor -- also known as an investment advisor -- can help you assess your financial goals and what you need to do to reach them. He or she can also help you understand your personal risk tolerance and tailor a portfolio to your comfort level. Companies like Wealth Builder Advisor may be able to meet your needs in this area.
If you need more financial guidance than just how to invest your portfolio, you may want to talk to a Certified Financial Planner. Financial planners take a more rounded approach to planning what to do with your money. They will help you develop long-term goals, build a budget, plan for taxes, create an estate or understand your cash flow.
Several things will change with your immediate financial picture once you are a high earner. Not the least of these are taxes. A Certified Public Accountant can explain ways to reduce your tax bill -- such as setting up retirement contributions, avoiding certain income thresholds, donating money or knowing when to take capital gains. An accountant may also be a good resource when designing a budget or making choices about purchasing assets.
Whether or not you have a will or trust in place, it's time to draw up a new one. Use a lawyer who specializes in estate planning rather than trying to go it alone when working with legal documents. A lawyer can also help you screen money requests, work with charitable institutions, or reduce your liability risk.
By consulting with at least a few of these professionals, you can successfully manage your new-found financial success and ensure that you can reap the rewards for a lifetime.