Losing a spouse is an unimaginable emotional and financial upheaval. Suze Orman recently shared a poignant story on her podcast about a woman who, after the sudden death of her husband, was left with $7 million from life insurance. This woman, inexperienced in handling such a large sum, faced a series of challenges and potential pitfalls, highlighting Orman’s critical advice: do nothing with the money for at least six months to a year.
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Orman stressed the importance of this waiting period to prevent emotionally driven financial decisions that could lead to significant losses. “You may feel like you are making the right decisions and that you know what you’re doing when it comes to money that you’ve never handled before. But I’m here to tell you, you are not in your body, you will get taken advantage of possibly, but you will not be doing that which you should be doing 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, allowing her time to grieve and regain her bearings. Orman’s advice was clear: “You are to do nothing other than keep this money safe and sound, except obviously pay off debts and things like that, but nothing besides that, for at least six months, one year or two years suffering the loss of a loved one.”
However, this safety period was interrupted by a financial advisor who aggressively pushed the widow into making 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 have some financial advisor do things with people’s money when they’re not ready to do it just because this person may make more money or his firm may make more money.”
Orman emphasizes the necessity of understanding one’s personal financial situation and being wary of advisors who do not take the time to fully comprehend their clients’ needs. “I think about that as financial abuse, believe it or not. When you are a financial advisor and manage the advice that you are giving somebody, and the only way that you can do that is to understand who the person is, what have they gone through.”
The widow’s experience underscores a critical lesson for anyone coming into a large sum of money: finding the right financial guidance is crucial. Orman advocates for seeking a comprehensive wealth management team that includes specialists in various financial areas. “When you inherit large sums of money, and $7 million is a large sum of money. You want to make sure that you are dealing with a wealth management firm, a firm that has lawyers just to talk to you and not charge you.”
For those in similar situations, Orman’s story serves as a cautionary tale. It’s essential to conduct thorough research and ensure that financial advisors have your best interests at heart. By taking these steps, individuals can protect their newfound wealth and honor the legacy of their loved ones by making informed, deliberate financial decisions.
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This article Death Of Spouse Leaves Woman With $7 Million, Suze Orman Says ‘Do Nothing With That Money For At Least 6 Months’ originally appeared on Benzinga.com
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