Suddenly wealthy people may have a hard time controlling their wealth and ultimately end up losing it all. The Article suggests that three main reasons these type of people are unable to retain their wealth is due to a lack of understanding the impact of taxes, a lack of understanding saving and investing techniques, and pressure from loved ones to spend. Called “sudden wealth syndrome” in the financial industry, it can be avoided by saving early and understanding debt and equity. One thing that comes as a benefit from this “syndrome” is that now smart savings and investing information is easily accessible to all people who want to become knowledgeable on these strategies.
See Juliette Fairley, The Downside of Sudden Wealth, Financial Advisor Magazine, June 16, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
