Topic: Financial Advice for a young millionaire (Read 916 times)

To be honest, maturity does not come with the age but with the responsibility. I remember when my father died, I was 19 years old and fortunately I had a job where I was getting about $100 per month back then. The only mistake I made was, that I trusted some closest people who are my relatives but later I saw their true faces when I was about to start construction to build my own home.

So, my advice is, never to trust anyone. Not even your relatives. Do whatever you want, you will learn from your mistakes. Try to be a hard-working man and never think that you will earn like your father without working hard.

If someone has inherited a business from their parents, of course they will be able to manage it easily if they are ready to manage the business their parents inherited and if they are not ready to manage a business, I think they can learn about the business so they can manage it well. be kind and don't waste what his parents have inherited from him because it would be very detrimental if they squandered what his parents have inherited from him, for now it will be very difficult to choose people who we can entrust to be able to run a business and it will indeed be better well, we manage as best we can and continue to study well what we can do to make the business continue to grow.

Does those child not have other close relatives such as uncles or aunts? Usually those who are born as sole heirs have uncles or aunts who always stick to their parents' business and that often happens, I'm confused about what advice to give to that child, if he has good close relatives then he can continue the business he inherited his father but if he has evil relatives, he would be better off selling the business and going to college.

To first not go by what anyone here says.  Now I could properly guide one, and so can some others, but most can't, and really there's no way for you to know if I'm legit, or if anyone is , for that matter.  I guess I could provide my CRD #, which for an American is your virtual code, that identifies you as a financial advisor.  If someone is trying to work with you and your finances and can't product this, you know they aren't legit.   

But my advice is to work with a season advisor who is open minded.  Don't go to a bank for one (Chase, Wells Fargo, Bank of America), don't go to a company like Northwestern Mutual who thinks it's okay to sell everyone Whole Life Insurance, nor a company like Fisher Investments who encourages people to "We hate Annuities and you should to", ie sell them before out of surrender, as well as produces a brochure chalk full of bullshit and won't address it (a buddy and myself wrote them a letter as members of a large broker dealer firm, and they refused to address it.  We pointed out the lies, misconception and hypocrisy.  AMAZING that the SEC allows it.  Well, pathetic, not amazing).  Best firm to hire someone to help would be an independent one..Raymond James, Edward Jones type.

Never go to free meal financial meet ups ( just had a client tell me about being invited to one, she told me she "ended up feeling back for the guy, and bought an annuity from him for about 30k.  Nothing wrong with that, technically, until she told me it was the Allianz 222 which is a bonus annuity and famous for being utilized as a scam by advisor.  No such things as bonuses in finance, at all !!! 

Be careful out there everyone.

If indeed the business is already running well it is also very impossible to stop so it is better that we have to continue it, right what you say, whether or not it depends on us, but if it can't it doesn't matter because indeed to accept new things we have to adapt first to be able to accept and run it, unless indeed from a long time already understand it because it often helps our parents' business processes. Because when the business is already running, in my opinion, the children only have to enjoy the results, with work that might not be as bitter as their parents when they pioneered and established the business.

That's right, surrounding associations can certainly influence us, especially if we can't manage finances properly. Managing finances is not easy because there will be many temptations that can affect us such as socializing around, with a young age it is not easy to stay away from socializing around. And it is also rare for young people to succeed at a young age by starting their own business, even by continuing their parents' business, sometimes it still falls apart because of the influence of the surrounding social environment that attracts them to enjoy youth just for fun.

Becoming a young millionaire is actually a lot and comes with a great responsibility, and being a millionaire and young, you need a very high level of commitment to be able to manage that money because all your target will to want to make more money, decline matters a lot because you have to have a better way of controlling money especially in spending, and making money in millions is a very good start, you will set goals on how to make more millions. You hardly see millionaires with friends they always want to be alone but and if it may be that they have friends it will be old friends then business partners, and you are earning we should learn to take the habit of saving seriously.  And also thinking adding up ideas, and from talking to be you can have good ideas and you can start up a business from does ideas.

Money management and business knowledge are essential, especially if you didn't start rich. Mastery, not survival, is the twist. You lead that business, learn everything, then follow your passion. It's practical and strategic. It's more than financial literacy when teaching youngsters. This is about developing leaders who think, empathize, and innovate. Not just inherit, they elevate. The legacy we should pursue. Individuals flourish with riches. More than money, make it about impact

I would advise him not to rush to spend money. In such a situation, the most important thing is to learn financial literacy, and it is not taught in schools.
And unfortunately this is the case, although this is probably the most important subject that would teach young people to understand that money can make money.
So, in the case of a young man who has inherited a lot of money, it is best to choose a prestigious university and hire sensible teachers. All this is necessary because an ordinary 18-year-old teenager will not be able to properly manage such a lot of money, and he can spend it all on nonsense things.

Want or not business from the family must continue to be run and about it can or not necessarily there is still time to study while still young.
It is true that we can give advice to anyone without waiting to be so or become a billionaire but with open thinking and different situations make us more free to see from a broader view so that it can provide input that may be good and can be accepted.

Management of financial is not an easy thing especially when still young with the many influences from young people who choose to stay in a comfort zone make it difficult for someone to get up and try to be able to manage business or finance so that it can remain stable.
And I think this is going or but a necessity that must be carried out consciously and responsibly.

On point! in order to have more knowledge and expand or spread the business and money left to him by his father, it would really help if he focused more on learning how to handle his own finances but right now, getting his own financial planner is the trend, especially if the child's forte is not managing business or finances, it's hard to insist because it might just make it worse if ever, so it's much better if we ask the person directly if he is willing to the suggestions that other people give him because at the end of the day, it's his own decision to follow.

Agree with you. I'm also not the son of a millionaire, but if you are in the position described by the OP, of course the best advice is to continue learning how to manage your finances well and use your money for productive things, not for waste. . The last one is of course business, study the business left by your father so that it can be continued and developed, even though we don't like it, we have to force this so that over time we can master it and can entrust the business to other people and we can continue the business that we like.

From OP's story we can conclude that it is important to educate our children about finances and educate children about the basics of entrepreneurship so that they can learn empathy, leadership and be independent in making money. So that when we are no longer around, our children can easily continue our business and continue to develop the inheritance we left behind. At least when his parents were gone he didn't just spend the inheritance he left behind but was able to develop it so that it continued to grow.

The only financial advice I can give is to take full care of all the money he inherited, take responsibility for managing it, and not use it just to enjoy the life he has. Money is something that can be lost anytime if it's not used correctly. And since he has the opportunity to learn more and learning more skills by utilizing the resources he has, maximize it and be a better person to be able to successfully manage all those money.

He should get a skill or go for knowledge, cause its better he does that than waste that money on life and from his age we can expect a lot of mistakes that he could make from involving in bad friends or drinking, smoking unhealthy gambling life and all that.

I would say he us more in need of a mentor and tutor than any other thing, he might not have enough experience to grow a business now, but its better he gets that money working with an investment while he gets himself in other with pursuing knowledge. I think that's all that can help him.

Go to a trusted financial advisor because they will be able to provide the right advice, for example when suggesting investing they will also provide investment options that are suitable for young people or when suggesting opening a new business they will also tell you which businesses are suitable for young people, and the boy just has to choose what to do so that he can get more money and can guarantee a better life.
However, he must be careful because there may be people who approach him and suggest things that look good but are actually fraudulent, and also if someone suggests investing in Bitcoin, he must also tell him everything including how to store this asset properly and so on so that investment goals can be achieved.

As he is very young and has inherited everything from his father, he must now proceed very cautiously. It may be difficult for him to manage such a big business alone. You should learn about the business well beforehand and plan accordingly. Also take a reliable and skilled worker who can manage this business well you can learn a lot from this too.

I'd suggest that they put a decent chunk, say 50% of it, away into some sort of trust fund that locks it away for a few more years. That way they can have a bit of fun, take risks and blow through all of it if that is what they choose - then they will have a sizable sum to fall back on when they realize how hard money is to actually make. They don't have to be wasteful with the first 50% but many people at that age in life have no idea about money and how far (or not) it can really stretch. When they haven't earned the money either, it have even less meaning to them. I'd warn them away from taking any drugs, but would expect them to drink a few alcoholic drinks along their journey.

Enjoy it the way you want to and learn from your mistakes if ever you will be doing one or some. It is easy to tell them to spend it wisely or put it to an investment but not all young people are into that or even having understanding of what's right and what's not especially if it is with money. They may consider asking their older relatives about it and such but they could be taken advantage of in some instances.

The reason why I said to spend it on the way an individual would want to, is to also know the value of money. He/she could use it on things which are really not important such as luxurious things, and eventually nothing will be left. That is the time which he/she could reflect and learn. HmIt might light a fire within him to again reach that money thru hardwork of his own and be able to spend it as it should be. Failing teaches the best lessons in life. Consider that you are inheriting to an 18 years old boy and not a grown up man.

op is at the age where he is learning a lot so he can manage his father's business now if he wants to. In this case he can take the advice of some special knowledgeable people instead of taking advice from public place and he will get good results. I myself will not give him any advice as I have no experience in running a business.  So I don't think my advice will work well for him. He should take advice from those people who are involved in the business and have long experience

First thing first, since the boy is not yet out of school and he's the only son of his mother I think the mother is the person that needs to be advised more right now because she's the one that the young man will listen to more because he must be closer to his mom since he is the only child I believe the mother can't watch his only son to start spending the money he got from his father's inheritance lavishly on girls, exotic cars or wine. My advice is that the mom should get a good financial adviser for herself and the son with that the boy will understand the importance of investment and since he's still schooling, having a good business class would help him to understand the types of business he should venture into but right now I think I don't know the type of business to recommend them to invest in to because they don't have an idea yet so it's impossible for them to be successful into any kind of investment because they have zero knowledge about it.

What must be considered in my opinion is that he must be able to manage finances well, with him receiving a lot of money or inheritance it does not mean that he can use it at will to do things that give pleasure only temporarily. he must be able to manage it well as you said that one of them is by fulfilling his needs, which needs must be met. It's just that not all young people can be like that, because every person or young person certainly has different attitudes and thoughts.

Regarding the business, I think there are two possibilities if he doesn't like it, he can just sell it and start the business he wants and dreams of, but starting a business from scratch is not an easy thing because it needs skills, determination, courage, and mature knowledge. The second possibility is that he can continue his business, if he doesn't like his business it is unlikely that he will leave it abandoned because it is not a good decision, he can continue it by adapting first because indeed to accept a new thing we have to adapt first, over time I am sure he will definitely like it. Because the business he is interested in is not necessarily going to make him comfortable in running it.