Most people want to start spending their money right away, and their list of desires is long. Delaying major life-altering decisions, such as moving or quitting a job, can put the brakes on impulsive behaviors.
“Use the decision-free zone to sort and organize,” Bradley said.
Robert Pagliarini, a certified financial planner whose firm, Pacifica Wealth Advisors, specializes in serving clients experiencing a windfall, also cautions against too many big decisions.
The author of “The Sudden Wealth Solution: 12 Principles to Transform Sudden Wealth Into Lasting Wealth,” Pagliarini also has a master’s degree in clinical psychology and explained receiving money suddenly often leads to depression.
“We take ourselves from what feels comfortable … and put ourselves in a brand-new environment,” he said. By moving, people leave their communities and join ones where they are not yet rooted. Taking up expensive hobbies like travel means less-well-off friends can’t participate.
“It’s really hard to keep those relationships,” Pagliarini said.
Family and friends may also come out of the woodwork asking for a share of the windfall. A decision-free zone provides an inoffensive way to tell them you’re not making any financial commitments just yet.
Read the full article on CNBC
About the Sudden Wealth Financial Advisor
Robert Pagliarini, PhD, CFP®, EA has over 25 years of financial planning and investment management for the suddenly wealthy. Robert is a CFP® Ambassador, one of only 50 in the country, and a real fiduciary. He authored the book The Sudden Wealth Solution: 12 Principles to Transform Sudden Wealth Into Lasting Wealth in hopes to help those deal with sudden wealth and the emotions that come along with it. In addition to his Ph.D. in financial and retirement planning, he earned a Master's in Psychology to better understand and be equipped when helping clients manage a windfall. He has helped clients from across the United States who have received a windfall from an inheritance, lawsuit settlement, business sale, stock options, sports and entertainment contracts to make sense of their sudden wealth. When he is not helping the suddenly wealthy, you can find him writing personal finance books and articles for Forbes. If you're needing help managing wealth, contact Robert directly.