What would you do with an extra $90,000? Would you pay off some of your debts? Take a trip? Buy a new car or boat? You’ve got a real problem: What to do with the money? You may be thinking, “That’s a problem I could handle!”

According to Cornell University’s Department of Consumer Economics and Housing, Americans will inherit nearly $10.4 trillion in the next 30 years. That averages out to about $90,000 to every baby boomer in the U.S. The average may be higher here in the Napa Valley.

Where did the parents of the baby boomers get all this money? Their savings habits were probably no better than those of their children. They may have been just plain lucky, say some researchers. About two-thirds of the wealth that has changed hands since 1950 was from appreciation of assets. Housing ownership during this time has boomed. Also, those boomer parents own more than half of the stock that has averaged more than 10 percent per year in the last 20 years.

The researchers at Cornell cite a survey that says that the parents of baby boomers have over-saved because of uncertainty about their life expectancy.

Receiving a large amount of money can significantly impact us. Besides inheritance, there are several other ways individuals receive chunks of money: cashing in 401(k)s, insurance settlements, division of assets at divorce, etc.

Wealth management isn’t just for the rich. Most people are traumatized by sudden wealth. Over time, I have seen people react in dramatically different ways when these events occur.

Psychologically, many of these events are depressing. Personally profiting from the loss of a spouse, parent or friend creates a good measure of guilt for some. Divorce can be devastating, and dealing with the money makes it even scarier.

Windfall wealth is a complex problem. It has to last. You don’t want to lose it. You don’t want to be a patsy. You also don’t want to appear greedy or extravagant.

What do most people do with it? One Canadian study says that 84 percent placed most of it in investments. Only 39 percent made major purchases. About two-thirds paid off some debts. Instead of placing their inheritances and hard-earned money in short-lived indulgences, most were concerned with building and protecting their assets and passing them on to future generations. Most were concerned with long-term investing.

The Canadian survey said that 93 percent of those who became “suddenly rich” did not have enough information to make good decisions and nearly one-third said they didn’t know where to get good advice.

When it’s your turn, don’t go it alone. Do some homework. Get references. Talk to your CPA or attorney.

Contact Tom at 1030 Seminary St. Ste. D, Napa CA 94559, 254-0155 or suntrm@aol.com.