How to Protect an Inheritance to Live the Life You Want

Avoiding the Pitfalls that Can Empty Your Bank Account

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Video Transcript

Adam Stalnaker 0:10
Adam Stalnaker and Joe Kovach. Here the Rockport Wealth Advisors wanted to share a client story with everyone and kind of some of the pitfalls when it comes to somebody getting a windfall of money. Now we’re going to this client, his name is Doug. And he came in through a windfall of money. Let’s talk about what a windfall of money is. You can get it through an inheritance, death, divorce, or lottery winnings. Yeah. But, Doug, 10 years ago, got this windfall of money. And Joe, let’s fast forward to today, let’s talk about what has occurred in the last 10 years.

Joe Kovach 0:47
Doug did not too good a shape right now. Yeah, he so he resisted the planning process that we like to talk about in budgeting and, and frankly, I believe he thought he couldn’t go through several million dollars in ever. And it turns out, you can do it a lot quicker than you think. I mean, he would take planeloads of people to Vegas, he would remodel on house. Yeah, it’s good time for everybody. You got the freebie, you know, remodeling his house several times buying cars.

Adam Stalnaker 1:12
All good investments, right? You can really make a lot of money off of all those things.

Joe Kovach 1:19
Exactly. Exactly. So you know, we have a situation where no planning, oh, I’m never gonna go through this amount of money. It’ll never happen. You can certainly do it a lot quicker than you think there’s no question about that in. And now, Doug is not in great shape.

Adam Stalnaker 1:33
I mean, with a plan, Doug might be living off of income of $150,000 – $200,000 a year.

Joe Kovach 1:41
Easily, easily.  And doing most of what he wanted to do. Yeah, and doing most of what he wanted to do, but not anymore.

Adam Stalnaker 1:47
Instead, you spend that money, it’s gone. You can now not make any more money off of that money.

Joe Kovach 1:53
It’s tough to get interest off zero. Exactly. So you really it’s just a really sad situation. But it can happen. I think the point to take away is without a good plan and some budgeting you can go through a lump sum of money much quicker than you think… that’s the bottom line.

Adam Stalnaker 2:09
You see, those happen far too often because people just don’t understand the power of money in in creating a plan around. So if this is affected you or someone you know, feel free to reach out we’d be happy to have a conversation. And hopefully, it’s on the front side of Doug’s windfall and not on the backside

Joe Kovach 2:29
Right. A true example of small changes now can equal big changes later on.

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Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through Rockport Wealth Advisors, a Registered Investment Advisor. Private Client Services and Rockport Wealth Advisors are unaffiliated entities.

Rockport Wealth Advisors is a dba of Rockport Wealth, LLC, a fee-only Registered Investment Adviser (RIA) registered with the Ohio Division of Securities and offering a full range of professional services. The scope of any financial planning and/or consulting services to be provided depends upon the needs of the client and the terms of the engagement. Please see our ADV disclosure documents for more information about our business.

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