I’m 54 And About To Receive An Unexpected $3.7m Inheritance. What’s My First Phone Call?

While the whole idea of suddenly receiving money feels more like a Hollywood story than reality, in some cases, it can be very real. Any instance in which someone gets a sudden windfall can immediately raise concerns about what to do next. 

This is precisely how one Redditor feels, based on their post in r/personalfinance, after receiving a sudden multi-million-dollar inheritance. With a check coming for a significant amount of money, they are admitting they don’t know what to do and have not been good with financial planning in the past. 

It’s Okay to Feel Worried

With the unexpected news that the Redditor is going to receive a check for $3.7 million, there is every reason to feel worried. This is more than just a sudden windfall, it’s a life-changing amount of money, and at 54 years of age, this money could very well allow this Redditor to retire early. 

Understandably, this windfall is causing some immediate anxiety, as you have someone who doesn’t have a strong history of financial planning and money management. Although they admit to living within their means, they also readily acknowledge that they lack experience with financial planning, having worked in a blue-collar healthcare job for their entire lives. 

They know they have a 401(k) account, and that’s about it as far as financial planning goes, so they are hoping that Reddit can give some advice on whom their first phone call should be. 

What this Redditor Needs to Do

As far as the very first phone call the Redditor needs to make, it’s likely to a fiduciary financial planner. This is a credentialed financial advisor who has a fiduciary responsibility to you, and this is absolutely the first call that needs to be made. The only caveat is that the Redditor shouldn’t call anyone until they have the money in hand or deposited into an account.

The hope is that once this Redditor receives the money and consults with a professional, they can quickly develop a plan that considers both short-term and long-term goals. At the same time, and perhaps even before talking to a financial planner, this Redditor should also reach out and communicate with a lawyer. 

They need to hire someone who has no knowledge of the situation and can review any documentation without bias. The hope is that they can and will inform the Redditor of any special clauses, wishes, or other requirements that might be necessary to receive this money.

In addition, even if the Redditor doesn’t immediately indicate they have any debt, they should still look at their entire financial picture. How much do they owe on a mortgage, cars, or anything else that might not be considered bad debt? It’s fantastic that they have lived within their means, but this is also something to be watchful of. 

What You Should Not Do

While it’s impossible to say without more information where this Redditor stands financially, there’s no doubt that this money will be life-changing. This also means that the Redditor needs to keep the circle of people they tell about this money very, very small. 

It’s okay to tell a spouse, and potentially your children, but any other immediate family, especially someone who might have been related to the person giving you this money, should be out of the loop. 

In fact, this Redditor might want to consider never divulging any information about this money. This is the exact scenario where relatives will come out of the woodwork looking for a handout or reminding you of a time they lent you a little bit of money earlier in your relationship.

Arguably, the most important thing is not to do anything impulsive. This means that they should not go out and buy the sports car they have always dreamed about or pay off a mortgage. Until they consult with both a lawyer and a certified financial planner, they should continue living their lives as is, until everything is both legally and financially settled in a manner that makes everyone feel comfortable.

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