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Personal Development 13,261 views Sep 20, 2018
How to Make the Most of a Staggering Windfall

Lots of millennials are about to come into a lot of cash in the near future. Okay, in the next 20 to 30 years. Baby boomers are about to offload most of their wealth to their children – a study by Accenture says between $1 $3 trillion will be transferred to heirs by 2050. Question: are the recipients ready to handle such amounts and if not, how can they make the most of each coin?

  • Do Nothing

First order of business as told by experts: do nothing at least for the first few months. Financial advisors reckon that upon receiving a huge sum of money, most people are likely to make hasty decisions. So, take a few deep breaths and do nothing until you are mentally ready to make sound decisions. Go on holiday, even, to sort out your thoughts.

An inheritance is different from rotary wins in that an heir knows the person who bequeathed them personally. In this regard, they are less likely to spend the money poorly.

  • List your Plans

You have all the money you ever wanted – or at least a little of it. What are your plans with it? While away on holiday or in the first month of receiving the inheritance, experts advise that you make four lists. The first is a safety measure – the cash you will set aside for medical and life insurance, personal use and such expenses; Fun – your planned vacations and other escapades; the future – portion set aside for investment; and cushion – money for emergencies. You want to ensure there is money for each of this categories and if you are so inclined, you could send some of it to charity.

  • Pay off Debts

If you have any debts, this is the best time to pay them off. You may never have cash of this magnitude again and so you want to be free of any encumberment. Also, note that you don’t have to make advance payments just because you have the cash. If your mortgage is payable in five years, you could invest this cash into a plan equivalent of this period then take out potions of it to pay off the mortgage as it becomes due.

An expert advises on thinking income instead of assets. Think of the inheritance as a certain amount of money for the next so many years instead of a lump sum – say $40,000 a year instead of $1.2 million. This perspective helps when planning on his to spend your new wealth.

  • Fund an Idea

You may not have a solid business plan but others could, and so here is your chance to be a venture capitalist. It comes with its tax benefits too, so you will be saving some and making money at the same time. There is no shortage of ventures that could use funding, such as upcoming web design firms that offer futuristic solutions.

Have Fun!

While making all these plans, don’t forget to have fun! You don’t have to live in squalor because you are too scared to spend what you have already earned. As long as the future is secure, you can have fun with what’s left.


Tags: #personal 

Ivan Serrano 's Entries

11 blogs
  • 07 Dec 2017
    Investors are happy about the Pro-business incentives like low-interest rates. Because of this, investors are looking for financial instruments that promise high returns. REITs are on top of the list for the best investment opportunity. REITs, the Real Estate Investment Trust refers to the type of security invested in real estate through mortgages and properties on major exchanges. REITs are attractive because they are generally exempted from the federal income taxes at the corporate level, and they have a dividend payout ratio of about 90 percent. Despite the promise of high returns, investors are skeptical to inject funds into a high-risk business environment. This is because the high-interest rates increase the cost of debt financing and REITS come with debts as they are acquisitive. But, despite these facts, you can still invest in REITs in a high-interest environment if the rise in interest rates is a result of a strengthening economy. But that isn’t all that you need to consider before investing in REITs: even with the high demand for property. Like applying for an MDEL, keep the following under consideration: Types of REITs: what are you interested in and which sector of the economy are you more knowledgeable in? These questions are crucial as they determine whether you will invest in retail, residential, healthcare, mortgage or office REITs. Keep in mind that the values of the investments rise or drop depending on the existing market conditions. Understand how REITs work: investment in REITs is simply an investment in commercial property where you either acquire it or develop the property from the ground up. The property is then rented out and the rental income generated distributed to the shareholders as dividends. As mentioned above, you get up to 90 percent of the taxable income annually. As an investor, you avoid double taxation. You also avoid paying the corporate tax. Which risks are involved? All investments come with risks. However, how much risk is associated with the chosen REITs? As with every investment, the interest rate risk is big in REITs because high-interest rates create a downward pressure on the prices of REITs stocks. You should also be aware of the company and sector-specific risks because some estates are defensive. Others do well in strong economies but get hard hit in case of recessions. Understand the metrics used to evaluate REITs: Since the traditional metrics for evaluating stocks don’t apply to REITs, you have to be more careful. In REITs, you need to understand FFO or Funds from Operations. FFO is a version of earnings, and it adds back to the property’s depreciation. It also makes adjustments that accurately show REITs income which influences the dividend payout ratio. The cap rate, intrinsic value, debt coverage and the net asset value are the other features you should be aware of. Final Thoughts REITs can provide real returns on investment, and when you invest in quality properties, then you are guaranteed total return investments. The management of the property should be solid, and you may want to buy a mutual fund that invests in REITs because they will only invest in the best properties.
    790 Posted by Ivan Serrano
  • Investors are happy about the Pro-business incentives like low-interest rates. Because of this, investors are looking for financial instruments that promise high returns. REITs are on top of the list for the best investment opportunity. REITs, the Real Estate Investment Trust refers to the type of security invested in real estate through mortgages and properties on major exchanges. REITs are attractive because they are generally exempted from the federal income taxes at the corporate level, and they have a dividend payout ratio of about 90 percent. Despite the promise of high returns, investors are skeptical to inject funds into a high-risk business environment. This is because the high-interest rates increase the cost of debt financing and REITS come with debts as they are acquisitive. But, despite these facts, you can still invest in REITs in a high-interest environment if the rise in interest rates is a result of a strengthening economy. But that isn’t all that you need to consider before investing in REITs: even with the high demand for property. Like applying for an MDEL, keep the following under consideration: Types of REITs: what are you interested in and which sector of the economy are you more knowledgeable in? These questions are crucial as they determine whether you will invest in retail, residential, healthcare, mortgage or office REITs. Keep in mind that the values of the investments rise or drop depending on the existing market conditions. Understand how REITs work: investment in REITs is simply an investment in commercial property where you either acquire it or develop the property from the ground up. The property is then rented out and the rental income generated distributed to the shareholders as dividends. As mentioned above, you get up to 90 percent of the taxable income annually. As an investor, you avoid double taxation. You also avoid paying the corporate tax. Which risks are involved? All investments come with risks. However, how much risk is associated with the chosen REITs? As with every investment, the interest rate risk is big in REITs because high-interest rates create a downward pressure on the prices of REITs stocks. You should also be aware of the company and sector-specific risks because some estates are defensive. Others do well in strong economies but get hard hit in case of recessions. Understand the metrics used to evaluate REITs: Since the traditional metrics for evaluating stocks don’t apply to REITs, you have to be more careful. In REITs, you need to understand FFO or Funds from Operations. FFO is a version of earnings, and it adds back to the property’s depreciation. It also makes adjustments that accurately show REITs income which influences the dividend payout ratio. The cap rate, intrinsic value, debt coverage and the net asset value are the other features you should be aware of. Final Thoughts REITs can provide real returns on investment, and when you invest in quality properties, then you are guaranteed total return investments. The management of the property should be solid, and you may want to buy a mutual fund that invests in REITs because they will only invest in the best properties.
    Dec 07, 2017 790

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  • 18 May 2018
    Unless you work nights, how to start your day will determine whether you get through your to-do list and meet your goals or not. You may argue that you are not a morning person but, if your employer expects you in the office by 8 am or if you have a meeting scheduled for 7 am, you will have to show. This means that you need to shower, get dressed, maybe clean the dishes, or eat breakfast, get the kids to school, and show up in time. As an agile software development life cycle professional, here are some of the ideas you can employ to start your day off perfectly and not have to worry about the iron box you could have forgotten to switch off. Identify something you’d like to do Write down a list of things you’d like to do before you head out of the house. Perhaps you need to fix and eat a good breakfast, shower, do the dishes, prepare and drop off your kids at school or even do laundry. You should also write down a list of things that would make you happy if you did them in the morning. This could be meditating, going for a run, reading, playing an instrument or doing yoga. It doesn’t have to be a long list, and it shouldn’t be something that needs you to be awake for 3 or 5 hours to accomplish. Since mornings set the pace and tone for your day, you need to ensure that you don’t rush through things. So, whatever you think you should do, make sure it’s meaningful. For this to work, identify and prepare for the morning activity the night before. If you work for a company like Diamond and Diamond, this plan will keep you productive and able to take care of the big cases. Your list could have different categories like productivity, self-care, and health. Identify how much time you’ll need How long will it take you to read, meditate, eat breakfast, shower, or get your kids ready for school? Working backward from the time you need to be at work or heading out to that meeting, determine the time you should be out of bed. If your list is too long or you find that some days need more to be done than others, then you should prioritize. If spending a few minutes doing yoga makes you the best version of yourself, then do it and leave out other tasks. Also, note that breakfast is the best meal of the day and so, include time for breakfast unless you can eat elsewhere. Make it a routine The only way to make something habitual or routine is by doing it repetitively. Once you identify what you need to do in the morning, stick to the list so that it becomes a natural rhythm that forms a part of you.  You can only make changes as you go but, don’t make the change drastic. This also means waking up at the same time every day, even on weekends so that you have time to take care of everything you need fast. As you integrate the new routine, you will soon realize that some things do not work for you too well. Don’t be afraid to switch things up, swap activities, or do other things the night before. Don’t overthink it The morning routine only works if you don’t put too much thought into it. If you don’t have to think about it as much, then you won’t suffer from decision fatigue. And, it becomes easier to go for a run at 5 am. The first 7 days are the toughest. Lastly, we recommend that you do it consistently for at least 7 days, pushing yourself to make it to a month and then transform that routine into a lifestyle. Don’t forget to set your intentions for the day.
    991 Posted by Ivan Serrano
  • 07 Dec 2017
    Investors are happy about the Pro-business incentives like low-interest rates. Because of this, investors are looking for financial instruments that promise high returns. REITs are on top of the list for the best investment opportunity. REITs, the Real Estate Investment Trust refers to the type of security invested in real estate through mortgages and properties on major exchanges. REITs are attractive because they are generally exempted from the federal income taxes at the corporate level, and they have a dividend payout ratio of about 90 percent. Despite the promise of high returns, investors are skeptical to inject funds into a high-risk business environment. This is because the high-interest rates increase the cost of debt financing and REITS come with debts as they are acquisitive. But, despite these facts, you can still invest in REITs in a high-interest environment if the rise in interest rates is a result of a strengthening economy. But that isn’t all that you need to consider before investing in REITs: even with the high demand for property. Like applying for an MDEL, keep the following under consideration: Types of REITs: what are you interested in and which sector of the economy are you more knowledgeable in? These questions are crucial as they determine whether you will invest in retail, residential, healthcare, mortgage or office REITs. Keep in mind that the values of the investments rise or drop depending on the existing market conditions. Understand how REITs work: investment in REITs is simply an investment in commercial property where you either acquire it or develop the property from the ground up. The property is then rented out and the rental income generated distributed to the shareholders as dividends. As mentioned above, you get up to 90 percent of the taxable income annually. As an investor, you avoid double taxation. You also avoid paying the corporate tax. Which risks are involved? All investments come with risks. However, how much risk is associated with the chosen REITs? As with every investment, the interest rate risk is big in REITs because high-interest rates create a downward pressure on the prices of REITs stocks. You should also be aware of the company and sector-specific risks because some estates are defensive. Others do well in strong economies but get hard hit in case of recessions. Understand the metrics used to evaluate REITs: Since the traditional metrics for evaluating stocks don’t apply to REITs, you have to be more careful. In REITs, you need to understand FFO or Funds from Operations. FFO is a version of earnings, and it adds back to the property’s depreciation. It also makes adjustments that accurately show REITs income which influences the dividend payout ratio. The cap rate, intrinsic value, debt coverage and the net asset value are the other features you should be aware of. Final Thoughts REITs can provide real returns on investment, and when you invest in quality properties, then you are guaranteed total return investments. The management of the property should be solid, and you may want to buy a mutual fund that invests in REITs because they will only invest in the best properties.
    790 Posted by Ivan Serrano
  • 10 May 2018
    It’s not every day that we feel productive and it is especially so as the day wears on. Luckily, there are mechanisms that we can put in place well in advance to help us with low bouts of motivation or creativity. Here are a few smart tricks you can apply in your day-to-day blogging. Plan in advance One of the ways to get ahead of a creative blog is by planning. That way, you won’t waste precious time looking for inspiration of content to write. It helps to not only have a topic but a brief outline of the direction you may want to take. That then makes researching the text more effortless. Bank your posts There are days outside your scheduled posting where you feel inspired to write a piece. What one of the most prominent lies creatives tells themselves is that they will either remember or write something later. Use these moments to write whatever it is and take it out on a rainy day. It may not always be perfect and may need some tweaking, but it would be much better than the agony of staring at a blank page. Use templates While creativity is highly encouraged, there are times where nothing seems to inspire you to create something fantastic. Here are where templates come in. Depending on what you’re going for, some apps help you create images or posters without having to result to Photoshop or a sketchpad. For those working on a series or a project, you can have a general outline to use on all the posts that save you time on trying to figure out what goes where. Content will flow easier given your thoughts are set to surge in a specific way. Having templates also work if you write e-books or follow a particular style format for your work. Create time to focus Multitasking has gotten a lot of praise over the years, only for scientists to tell us in the recent past that it doesn’t work well when we want to excel at a task. When it comes to writing the post, give it single focus and allow your mind to flow. Switching between work, from an article on Diamond and Diamond to writing on how to install soffit affects the article’s end quality. You don’t have to sit for five hours straight; you prepare timeslots for the intense focus to prevent fatigue. Schedule posts and sharing If you share articles at a particular time and you’re done in advance, you can always schedule the publication and check it as ‘done’ on your to-do-list. With technological conveniences today, you don’t have to be present to share your post when it goes live because the application does that for you. Don’t force it We’ve all experience difficult times or changes in our lives that make it hard for us to be faithful in our blogging. Should this happen, take a break. You’re better off sending an apology blog than sending out mediocre posts.
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  • 01 Jun 2018
    Feet and our hands are perhaps the parts of our bodies that we use most yet many do little to care for them. The only time people pause to notice they have feet is when they hurt, or more so when they have to call lawyers personal injury corporates hire after an accident. Consider thanking them for their services with these simple tips. Clean diligently The feet are perhaps the dirtiest region of the body but probably get the least or same attention as other parts of the body. Ensure to clean your feet thoroughly twice a day using, preferably milk soap or antiseptic soap to remove dead skin cells and kill bacteria. A brush with light bristles is preferred, but nothing too rough as it’ll strip your skin of natural oils. You can exfoliate twice a week using a foot scrub or sugar and oil after soaking your feet for 10 minutes. Once you are done, use a separate towel to dry your feet, remembering to dry between the toes. The reason to use a separate towel is that there could be fungus between your toes. Moisturize Cracking and dry feet are a sign that your feet need some TLC. You may notice these problems mostly during winter, but don’t wait for the wear and tear to show before you moisturize. You can do it a few times a day if you’re in a position to but right before bedtime is the optimum time because it during your sleep that the body heals itself. Include the top, bottom, and toes during this process, ensuring you get moisturizer into every crevice. To retain moisture and also not to stain the sheets put on socks. You don’t have to get fancy foot creams, sheer butter, olive oil or coconut oil can do the trick. Massage Though highly underrated, foot massages are one of the ways to keep your feet free of problems that tend to plague them. It promotes blood circulation on the feet and legs, relaxes you after a long day, you’re likely to have a sound sleep, and eliminates inflammation and any pain you may have. For this, use the oil you moisturize with; you can rub it in the palm of your hands to warm it for better absorption. Massaging may time consuming when you want to get into bed, but you can do it as you even read a travel blog and it takes the same amount of time. Use a kneading pattern, making circular motions using your thumbs. Remember to stretch your ankles and toes as well.
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