I was lucky enough once to try my luck in one of those cheesy money booths and despite not actually winning, anything it spurred the thought – what happened if I did? How would life change? what car would I buy first?
In fortunate and unfortunate, a good percentage of us, if not all, are likely to receive a large sum of money or valuable assets in the form of:
- an inheritance,
- sale of a business or personal asset,
- a lottery win,
- retirement, or even
Where receiving a large, life-changing amount of money in a short period of time, Psychologists have coined a term to describe this phenomenon.
Sudden Wealth Syndrome
The desires to spend what you never had more than likely will have the hidden ability to create the added pressure of knowing that you may not be managing this sum in the most responsible manner.
Throw in those long-lost family members who never knew you before you had money, and in most cases (or at some point) the Tax Man, it’s easy to understand it can quickly become an emotional roller-coaster.
Having money doesn’t mean you will necessarily stop worrying about money. In fact, it may lead to more worrying. Why? If you hope to manage this sum responsibly, you may have to learn a lot about financial planning and investing rather quickly.
Question(s) might be:
- How much should you spend now?
- Do you clear any debts?
- How will you invest the money you won’t be spending to ensure long-term growth and capital preservation?
- The black Aston Martin or the white Aston Martin?
Everyone will have an idea on what you should do, but what’s going to be the best long-term course of action? And what should you do to make sure it’s providing any future benefactors of your new wealth with the right benefit?
And these are questions I can help you with.
With all of the above (or most) there is also a case for prevention that may provide a cure. More on this to come…
Principal Advisor at Kofkin Bond & Co.
See who we are at: www.kofkinbond.com.au
And while you’re there have a play with LifeTracker: kofkinbond.com.au/life-tracker/