Managing an inheritance or new wealth according to an Intermediate-Term Plan

A major factor in what you will do is, naturally, the size of the windfall. Depending on the amount of your new wealth, you could consider some or most of these options:

?Purchase a new home (or second home)
?Go back to school
?Embark on a new career
?Create trusts for your children
?Retire early (or immediately)

Note we didn't include ?Buy a new BMW? on the list. You could certainly choose to, but we've stuck to higher-level goals for a reason. Driving a new BMW, while certainly fun, won't change your life. Leaving a higher-paying position you hate for a lower-paying career you love, for example, will.

Say you currently earn $60,000 per year managing a call centre, but what you?d really like to do is teach. A NSW teacher's starting pay is just over $50,000*. You would love to change careers but you just can't afford the $10,000 cut in salary.

If you invest a $200,000 windfall at a five per cent (pre-tax) return, you can make up the difference in salary and change careers.
First determine your near-term goals, then get help to ensure your windfall helps you reach your goals.

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