Fredl: When & if this RV happens there will be a seismic shift economically for most of us. Like it or not most of those around us will resent this shift.
It could make it difficult to know who trust & who our friends are. We can & should keep as quiet as possible but knowledge about what has happened with us will be almost impossible to avoid.
The saying "People don't remember what you do or say, they only remember how you make them feel" has stuck in my mind.
What we do with this new found wealth to enrich our lives and those that NEED it, without the expectation of it, will determine our happiness from here on. I hope I make the right decisions going forward. But 1st this blasted thing has to happen.
BlueyesinLevis: A friend of mine.. who has earned and lost several fortunes... the guy who got me into this.. said.. "Blue.... you wont believe what happens when they discover you have money.
They will come out of the woodwork. And don't kid yourself... any "loan" you make will go unpaid... and then they will expect more. Sad, but true.. a lesson I learned the hard way."
He is gonna legally change his name and leave town. I am probably gonna follow suit.
RandyToo: Yeah, I have made and lost a fortune the hard way. It took me 5 Silicon Valley startups before one of them took off and became really successful. It was quite something to instantly become a multi-deca-millionaire. Then I lost it all in the 2000 - 2001 dot-com bust.
Let me say a couple of words that might be useful. The day of the RV will be like no other in your life (unless you have made a lot of money like in a start up going public, or a huge stock deal or something like that).
I might describe your mood this way: "What is that buzzing sound? Is that a 747 flying by?".
Blue, your friend is absolutely correct. People will come out of the woodwork once they know you have $$. I found in the world there are makers and takers. I worked in the computer industry for just shy of 30 years before I helped found a live wire.
I made all the mistakes that people make when they get money and I cannot believe the number of people that appeared on my doorstep asking for money.
While a few asked for a gift, which I willingly gave them, most asked for a loan figuring that I would be more likely to grant their request if there was a promise of repayment (even though they had no intention of honoring their pledge).
I was particularly dismayed by the many ways money affected my family. I think in many ways losing it and being forced into bankruptcy was a real blessing.
Thinking back on it all, there are a few things that I would have definitely done differently. First, there is a very good book called The Millionaire Next Door (ISBN #9781589795471) that I would highly recommend.
In a nutshell, they suggest that beyond your spouse, attorney and financial team it is nobody's business what your net financial worth is. That is advice I intend on following.
Even though my entire family is invested in the dinar and may choose to share, I have learned that I am going to be tight lipped.
Second, I intend on being quite generous with this gift. Should someone come to me and ask for help, I will be inclined to help. That is my nature.
However, from my experience, I became very wearing when the same person came to me over and over again asking for a loan. I have a friend who sets strict rules on loans.
He never loans more than $1,000 and until it is paid back you may not borrow again. I may have different limits and I like the 1 loan at a time rule. I would recommend having a simple 3 or 4 paragraph loan agreement, particularly with family or relatives just to emphasize this is a loan that needs to be repaid.
Third, it is vital that you find yourself a good Tax Attorney and Estate Planning Attorney. You need to pay estimated taxes within 90 days of the RV. Don't leave this to the last minute and don't try to do this yourself. Pay all the taxes that are due. ‘
Believe me, I know from experience you don't want the taxman on your back. You also need to have a proper Estate Plan in place unless you don't mind enriching attorneys, the probate court, your state and the feds when you die.
And I am not talking about a little. In high net worth cases, you can be lucky if 25% to 30% gets to your family. You need good Estate Planning.
Fourth, Estate Planning is part of this, but once you have made money your job is to KEEP IT. While it might be nice to make more money, THAT IS NOT YOUR MAIN GOAL.
Get yourself some good financial advisors that you can trust. I can't emphasize that enough. That was my undoing. I was simply using the brokerage house that took us public and was relying on their advice on financial affairs (I was so naive).
The company that I helped found (I was employee #5) missed their numbers one quarter and the stock tanked. I called my broker and wanted to sell half my stock.
I was advised that was not a good idea since it was likely it would likely recover when the company reported better numbers next quarter.
Well I didn't sell and they didn't recover and then it really crashed. Take my advice, if you have an investment that is going south, take your losses and get out. If a broker wants you to stay in, he has other motives (particularly when they make a market in the stock),
Finally, if I may be so bold, you might consider using a DFA advisor for part of your investment strategy. (That stands for Dimensional Fund Advisor). I plan on it for myself. These are the kind of people that the 1% use. They tend to make money if the market goes up or if it goes down or even sideways.
It is a different kind of investment theory than most brokerage houses and financial advisors use. They usually require a minimum of $2 million to open an account and start investing and one company I was looking at required a $10 million investment for a personal account manager for their high net worth accounts.
I have a friend that uses this kind of company and the neat thing is you can go in and tell them what your profile is, what your tolerance for risk is, how you to be invested, what you want do, the kind of income stream you want deposited into your bank account each month, etc..
In my case, I intend on doing Charitable works so I intend on going around and finding causes to contribute to. I want a fund set up that I can distribute that they will replenish. Their job will be to build the principle to insure my Charitable fund never runs out.
I have many more ideas, like I will probably get a new email addressand new phone number that I can distribute to my close friends. But thesethings have been listed on many of the to-do lists that have been circulated on Dinar Recaps and other lists that are easy to find.
I do plan on buying a new car which is something that almost everyone who gets a lot of money does. I hope I don't have to leave town though.
I have probably said too much here as I don’t want to preach to anyone. Hopefully somebody can find something useful out of my experiences.
Thank you for your kind words. There are a few important things that I forgot to say. First, many people who have not had money think that if they only get some money all of their problems will be solved.
This is absolutely not true. What happens is money magnifies problems. The more money you have the bigger the problems become. That is why you have to have good people on your team and another reason to stay tight lipped.
Most people who win the lottery, get a big inheritance or otherwise come into a lot of money will lose it shortly thereafter. There are a couple of reasons for this.
First there is a tendency to indulge and buy a lot of "toys". It is easy to explain the new car that everyone buys (unless its a Rolls), but it is a bit more difficult to explain acouple of new cars, and big new boat sitting beside the new addition to your house. In that case, I would just let it go with something like: "I had a rich uncle die".
I don't know about you, but when I received my High School Diploma (I don't have a college degree yet, but I am worling on it) I did not even know how to balance a checkbook. Finances simply was not taught.
The dot-com bust happened shortly after my partner died so in addition to not having things setup well I was under great emotional stress. My eyes were off the ball and I was relying on others to carry me. I did not realize until too late what I was being told was bunk.
Finally let me say that having made and lost a fortune once, I don't want to ever repeat that experience again. It is easy to spend money and I did manage to spend a couple million before it all went away.
Now, I want to focus only on my goals and never have to worry about the financial side again. I assume you may be in the same boat and that is why I propose you get a Tax & Estate Planning Attorneys and a Financial Team together (including DFA advisors) as quickly as possible.
Whatever your plans are, I would hope that you remember others in addition to yourself and your friends. Whether it be one of the many fine organization that help the returning Vetrans or Cancer research or an Organization like St. Judes research Hospital that is dedicated to obliterating many childhood disease or pick your Charities.
I did not do much of that last time, I just indulged my every whim. Now I have had over a decade without to reflect and it is one of my biggest regrets.
Dave Ramsey (does a talk show promoting taking financial control of your life, becoming debt free and financialy independent) advocates taking part of your wealth and after paying a tithe, contributing to the charities of your choice. He says the reason is simple.
Like the Grinch whos heart grows beyond the capacity to be contained, giving and being in service to your fellow human being has that property.
Personally I have been touched by several stories of people who have gone around and personally investigated situations and then if they feel if they are worthey provide a small grant to cover the need.
It might be something as simple as a plot of land for a community garden or funds for a house for disadvantaged girls who are going to school that are pregnant or any one of hundreds of worthy projects. I think it would be a blast running around and doing good works.
Anyway there I go preaching again so I will stop but that is my plan. I don't mean to say that I am not going to indulge myself, my family or my friends ... because I am.
I just intend on having fun doing Charitable works. I can recommend it to others. Okay, I will slap my hands and stop typing now. RandyT00 (~_~)
KJWayne: Randy is right! Making a million dollars isn't that hard to do . Keeping a million dollars is VERY hard to do. We all have a "COMFORT ZONE" that we live in . This zone can help you or bring you down.
An example is ths. If you are living on 2,000 dollars amonth, for a long time, then THAT is your comfort zone.
When something happens and you suddenly have 10,000 dollars, you will spend ,spend spend until you are back to that 2k. Your back in your comfort zone. Comfort zones can be expanded by SLOWLY making that zone bigger.
It has to be done SLOWLY and continuously. I worked for General Motors Assembly division as a Production supervisor. Please do not buy ,buy ,buy when this thing hits us.
Like Randy has stated, Have a plan and plan on having MONEY people to help you with your plan. Most of us in Dinarland have never had big money. Get ready to have it. Yes, buy that new car or new home but then wait, we're good at that. Let the dust settle ,set a time out period before you blow more money.
This will be a once in a life time happening. Think, how can I make this money last ? INCOME is thekey that we are looking for. My money is going to make me more money! Little risk,modest income,taxes piad, increase my "COMFORT ZONE"!
Buttercup: KJ that was awesome input. I would also like to add something I read a while back that I think is wonderful advice for those who are suddenly rich beyond their wildest dreams.
-I read somewhere that experts actually advise the suddenly rich to just go ahead and designate a predetermined amount -- either a percentage of your whole or a fixed dollar amount.
[Actually, I think they said 10% of your whole which may or may not be a crazy amount, depending on how much IQD you hold...obviously that's a personal decision]
-Anyway, their advice is to designate upfront a set portion of your newfound wealth as "mad money." Money that can be blown through with no guilt.