Most business blog articles are about the process of acquiring wealth. In fact, they dedicate so many words to it; they often forget to provide people with any information for what they should do once they’ve acquired a lot of money. Managing your assets (either from a business or career) is essential if you want to reap the rewards of all your hard work.
The psychology of wealth is fascinating. When you pursue it, you believe that it holds the answers to many of your problems. Once you get rich, you tell yourself, you’ll be able to live a life of freedom and contentment.
But as you acquire wealth and spend it on the things you want, you come to realize a sober truth – it is only a part of the answer. While it is essential to have money in the bank, it doesn’t give you everything you want from life.
Boppre Law Firm knows this intimately. It is not enough to have a mountain of cash in the bank. You also want a legacy. You can’t take your money with you when you die – you have to find a mechanism for passing it onto the people you love or another cause.
So what should you do if you make a lot of money? How do you manage it?
Invest The Majority Of It
In the words of Bridgewater Associates fund manager Ray Dalio, “cash is trash.” The reason has to do with the money supply. Over time, governments and central banks print money and flood the economy with it – something they’re doing right now in response to the pandemic. The increase in the supply of money reduces its real value in terms of goods. Inflation thus eats away at your wealth.
When you invest the money, though, you buy companies who are the primary agents in the economy driving up prices. Therefore, a share in a firm shields you from inflation, since asset prices tend to rise lockstep with it.
Investing the majority of your money will protect you from the actions of central banks and keep your portfolio safe.
Decide How To Distribute Your Assets
If you have a mountain of wealth, you also have an opportunity to decide how to distribute it when you’re gone. Some might go to family or friends. Parts of it may even go to charities or good causes you believe in.
You will, therefore, need to write up a will that is beyond legal reproach. You need to make sure that the courts distribute your assets in a fashion of your choosing.
Think About Your Higher Calling
If you’ve made a lot of money, you have the security to do what you want in life. If you feel you have a higher calling, now is the time to fulfill it.
Perhaps, for instance, you want to start an ethical business that will change the world, or set up a charity of your own. Many super successful people do these things once they’ve sorted their individual financial needs.
