Here are some things to consider when you’re putting together a longer-term strategy for your newly acquired wealth. Although this article focuses on commercial sales, the same ideas apply to any significant, unforeseen cash inflow.

Regardless of your circumstances, we strongly advise seeing a professional counselor.

1. Tax preparation for gifts and estates in relation to liquidity 

Events Under certain conditions, if you intend to give gifts to beneficiaries such as children, you may be able to benefit from valuation discounts for gift tax purposes if you give away a portion of your private business interest prior to the liquidity event (which may not be available if you make cash gifts after the event).

2. Take your time

If you have sold a business, the proceeds from the sale may have allowed you to support your family’s lifestyle in addition to your own pay.

You could now need to use your portfolio to pay for such charges. The most crucial thing to keep in mind is that creating an investment or gifting plan does not have to be done immediately.

3. Gauge your risk tolerance

How do you handle investment risk? In certain cases, asset allocation may have a greater impact on long-term performance volatility than either market timing or security selection.

 4. Recognize your immediate needs

Make sure you have enough cash and short-term investments to meet any taxes on your earnings, finance any planned expenditures (such a second home or family vacation), and buy health insurance (if your company’s insurance no longer covers you).

Read Also – Projected Salary Increase in Malaysia in 2024: New Wage Dates in Malaysia