If a few million dollars—or more—fell into your lap tomorrow, what would you do?

Sudden wealth isn’t a common or reliable way to get rich, but it can and does happen. Some big drivers of sudden wealth include:

– Receiving a substantial inheritance
– Getting a major settlement in a divorce or a lawsuit
– Receiving a big payout because of stock options or the sale of your company
– Winning the lottery

But while sudden wealth may sound like a dream come true, it’s often accompanied by serious challenges resulting from the “sudden” aspect of that money. With sudden wealth, everything about being rich—the good and the bad—happens all at once. In contrast, most people who build wealth slowly are able to address issues and concerns incrementally over time.

The result: Sudden wealth can be an emotionally charged and overwhelming experience. Sometimes there are emotional challenges because of the source of the money—a relative who died, for example. Feelings of panic or guilt can go hand in hand with the feelings of excitement. All those swirling emotions can cause recipients of sudden wealth to make bad—sometimes exceptionally bad—decisions about the money and about their lives.

Here’s a look at how you—or someone you care about, such as your children—can prepare to deal with sudden wealth effectively to realize amazing opportunities while avoiding the many pitfalls of “striking it rich.”

Relationship challenges of sudden wealth

To be sure, getting rich quickly can solve many financial problems. At the same time, getting rich quickly can create big problems in your relationships with other people—including the people in your life you care about most.

Some examples: Family and friends may knock on your door looking for funds from someone they now see as a financial “white knight.” A sibling might be looking for an investor in her new business, or a distant relative might ask for help paying medical bills. A friend might hit you up for a loan.

Your marriage can be impacted, too. Shared decisions about how to spend, save and invest the new wealth can create friction. Before you got rich, your money was used largely to pay the bills. Now, with a lot more money, the myriad possibilities can create a wedge between spouses.

Sudden wealth can also impact new relationships. Are new friends—and, especially, new potential romantic partners—interested in you, or your money?

Registered Representatives offer securities through Securities America, Inc., Member FINRA/SIPC. Advisory Services offered through Securities America Advisors, Inc. ConfidentVision (5210 McKinney Avenue, Suite 300, Dallas, TX 75205) and Securities America are unaffiliated. Insurance products issued through many fine carriers. Securities America and its representatives do not provide tax advice.

This report is intended to be used for educational purposes only and does not constitute a solicitation to purchase any security or advisory services. Past performance is no guarantee of future results. An investment in any security involves significant risks and any investment may lose value. Refer to all risk disclosures related to each security product carefully before investing. Jan Mohamed is a registered representative of ConfidentVision. Jan Mohamed and ConfidentVision are not affiliated with AES Nation, LLC.

Jan Mohamed
Confident Vision
5210 McKinney Ave, Suite 300, Dallas, TX 75205
Office: (214) 525-7500 | Mobile: (214)215-8004
www.confidentvision.com