Losing a spouse is an unimaginable emotional and financial upheaval. Suze Orman recently shared a moving story on her podcast about a woman who was left with $7 million in life insurance after the sudden death of her husband. This woman, inexperienced in handling such a large sum, faced a series of challenges and potential pitfalls, highlighting Orman’s critical advice: don’t do anything with the money for at least six months to a year.
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Orman emphasized the importance of this waiting period to avoid emotionally driven financial decisions that could lead to significant losses. “You may feel like you’re making the right decisions and you know what you’re doing when it comes to money you’ve never used before. But I’m here to tell you that you’re not in your body, you’re there may be abused, but you will not do what you should do with this money.”
The woman, a 57-year-old mother of four, initially followed Orman’s guidance. She kept the money in a safe, low-risk money market account so she could have time to grieve and reorient herself. Orman’s advice was clear: ‘You are not to do anything other than keep this money safe and sound, except of course paying off debts and things like that, but nothing else, for at least six months, one year or two years, while you suffers the loss of a loved one.”
However, this safety period was interrupted by a financial advisor who aggressively pushed the widow to make significant investments, including $2.4 million in annuities. According to Orman, this action was nothing short of financial abuse.
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“Nothing upsets me more than that,” Orman says. “To not prevent a financial advisor from doing things with people’s money when they’re not ready just because this person might make more money or their company might make more money.”
Orman emphasizes the need to understand personal financial situations and be wary of advisors who do not take the time to fully understand their clients’ needs. “I consider that to be financial abuse, believe it or not. If you’re a financial advisor and you manage the advice that you give someone, and the only way you can do that is by understanding who that person is, what he or she has.” passed through.”
The widow’s experience underlines a crucial lesson for anyone making a large sum of money: Finding the right financial guidance is critical. Orman advocates looking for an extensive asset management team with specialists in various financial areas. “If you inherit large sums of money, and seven million dollars is a large sum of money. You want to make sure you’re dealing with a wealth management company, a company that has lawyers to talk to you and not charge you to take.”
For those in similar situations, Orman’s story serves as a cautionary tale. It is essential to do thorough research and ensure that financial advisors have your best interests at heart. By taking these steps, individuals can protect their new wealth and honor the legacy of their loved ones by making informed, informed financial decisions.
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This article Husband’s Death Leaves Wife With $7 Million, Suze Orman Says ‘Don’t Do Anything With That Money For At Least Six Months’ originally appeared on Benzinga.com
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