Here's the latest post from our weekly Monday night #MoneyChat. This weeks guest was Gail Perry-Mason (@waistreduction).
Gail Perry-Mason is the Senior Director of Investments at Oppenheimer & Co. She has been featured in many publications including: Ebony, Black Enterprise, On Wall Street, The Washington Post and Associated Press. Gail is also the co-author of 'Girl, Make Your Money Grow', a national best seller. She is currently working on another book, 'From a Full Figured Woman to a Seven Figure Woman - A Woman's Guide to Shifting Her Assets!' - Follow her Facebook Fan Page for updates http://on.fb.me/kgCQ7I.
Q1. I have inherited a large sum of money. I don’t want to blow it- What is my first step?
Be still and allow your money to be still until you have a home for it. I'd suggest you find a home for your money, build your savings and pay off debts. (Write down all debts) Also, make sure you put funds away for retirement planning.
Q2. Once I’ve funded my emergency fund and paid off my debt, what are some other ways to grow my money?
Stop paying interest and earn interest through investments, you can meet with a financial advisor and set up a plan. Be sure to diversify your assets - never put your money in one investment.
Q3. How do I manage the funds I have saved?
Managing your money is more difficult than making it. Set up a B.O.D. (Board of Directors) and gain knowledge. Who's on this Board?
a. Financial/Investment Advisor
b. Lawyer
c. Financial Coach/Credit Specialist
d. Agent if you need one
Q4. How do I determine my net worth?
Your net worth is a way to measure your financial progress. It is simply your assets (what you own) minus your liabilities (what you owe).
So in your assets column - write down things of value: stocks/investments, art, collectibles, value of vehicles and real estate/homes, cash on hand. Then subtract your liabilities: credit cards, student loans, other debt, outstanding amount owed on vehicles, homes, etc.
The balance is your net worth!
Q5. Do I still need a budget if I’m a millionaire?
You won't stay a millionaire if you don’t have a spending plan.
Q6. How do I handle family & friends who now think I’m an open wallet?
Tell your friends not to bank on you. Give them creative ways to create income vs giving them a handout. They need a “hand up”. Money hurts friendships that are priceless. Never exchange money. If you give it, don't expect it back.
Q7. I want to invest some of my money in business ventures, what should I look for?
Realize the risks involved, but also rewards. Make sure you have expert advice; have business attorney review proposals and business plans prior to signing on the dotted line. Are you the only one investing? That's a red flag to back away. Always monitor your investment and know what is going on in the business.
Q8. Any final tips so we don’t mismanage the wealth we’ve accumulated?
Put a moratorium on spending. We have to stop putting our trust in money and put our money in a trust! www.legalzoom.com Also, compound interest is your best friend! Put a Do Not Disturb sign on your money. Calculate the interest gained on investments here -> http://bit.ly/kR7ubP
-Dorethia
dorethia@connercoaching.com
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