As The Wall Street Journal explains in “How to Help the Suddenly Wealthy,” the overnight success story may be a person who becomes wealthy quickly by self-publishing a novel and makes more money with one book release than they previously made in an entire year.
This can make them feel overwhelmed, confused, and anxious about their next steps. This is where professionals can help them move forward.
Many of these overnight success stories have an instant and significant need for planning. One of the first things that an experienced estate planning attorney will do is discuss the person’s goals. Once this is known, a sound strategy for wealth management can be crafted.
Many folks who are used to living from paycheck to paycheck don’t think about important defensive planning strategies such as purchasing life insurance, disability insurance, or estate planning. Many haven’t started saving for retirement or for their children’s college education.
It can be overwhelming for a person to receive a sudden large infusion of cash. Many want to allocate their funds wisely, but frequently don’t know where to start. With the help of an experienced attorney, they can prioritize what’s most important to them and apply thoughtful tactics to achieve those goals.
It’s also critical for those who’ve become overnight financial successes to change their mindsets. Now that the small hobby in the basement is their way of making a living, they must begin to consider themselves as the CEO of their new ventures. This could be a multi-million-dollar company. They don’t ever want to live paycheck to paycheck again, so they must manage the finances of their new career and be able to withstand the ups and downs of business cycles.
Reference: The Wall Street Journal (November 3, 2016) “How to Help the Suddenly Wealthy”