Inheriting 20m- how to best prepare?
What roles would you transition to if you knew you were poised to inherit $20m? I am currently in a management consulting role but am considering transitioning to high finance roles that way I will Be well prepared to handle my money and build my network to multiply my capital. Particularly looking at real estate as it would be relatively easy to start funding my own developments and partnerships - but what would you guys do?
Probably should mention I am currently 25, graduated from a top 5 b school and am open to going back to school if needed
PWM. Hands down.
Why? I figured that I wouldn’t learn much about value creation, but I’d learn more about wealth preservation. I’m more interested in the former
PWM will give you exposure to the products that HNW individuals (aka YOU) will have access to. There are many roles in PWM, not just the ones that get clients and tell them not to put 100% allocation in the stock market when they're 85. At the end of the day, money from the S&P vs mutual fund vs private equity fund is still money in your pocket. Your goal is to maximize it, no shame in putting it in passive or letting someone else manage it.
If you go to the average mutual fund, you'll get the average return (which is under the S&P 500). I believe that there's more alpha in allocation that individual stock picking. But if you think that you're a lucky SOB, try buying bitcoin. :)
I might suggest seeking the counsel of a well-established UHNW wealth management team, at least starting out. With the kind of money you’re talking about, setting up a trust, or several trusts, should be a consideration.
Regardless of the major you took in college, there are a number of tax ramifications that may be avoided, or mitigated, with the correct distribution plan/schedule and well-defined short, medium and long term goals.
Not necessarily staying with one indefinitely, but a second set of eyes never hurt
the funds are already with a BB PWM division but will be transferred to me
Out of curiosity, do you have a succession plan in place in terms of who/how your account will be traded? Will you allow others to have discretionary trading authority over your account? Do you already have a financial roadmap in place, so to speak, such that you have your goals laid out/listed, in order of importance, along with estimated timeframes?
Honestly, I am not an Ultra-High Net Worth (UHNW) ChFC, CLU, or CFP, and there are some unique situations specific to UHNW individuals that should be addressed by those specifically educated to solve any potential financial anomalies. I'm currently in the process of taking the ChFC certification, but it takes some time and even with the certification, it is only really required when dealing with a narrow group of clients.
Sounds like you are at least not operating in a vacuum. Doing the requisite research for such a large sum of money is compulsory. Best of luck.
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