Robert Pagliarini was featured in a column titled “Sudden Wealth Syndrome” by the prestigious publication, Wealth Management. Here is a short excerpt from the column:
Pagliarini identified some of earliest dangers windfall recipients often face which, if left unchecked, can lead to their financial and emotional demise:
- Many think they have more money than they do. “Until they have a check in their hands, I ask them to pretend they’re not getting anything.”
- They view a windfall very differently than money they have worked for and as a result often spend it irrationally, he says
- They immediately quit their jobs. “I tell sudden wealth clients to go on vacation for a couple of weeks before doing anything.” Jobs give people a purpose, Pagliarini says. “Their current job may very well not be right for them long-term. But, when they don’t have to get up and do something, it can create a void. There’s a honeymoon period where they go on spending sprees and it’s very exciting. But, eventually, they’re likely to experience an emptiness again until they can create a new identity and mission for their lives.”
- They become suspicious. “Recipients can withdraw and become suspicious of everyone’s intentions. When reps try and get them to focus on the financials first, they appear like everyone else—most interested in the money. And, you can easily lose your client’s trust,” Pagliarini says.
- They are barraged with business propositions, requests for loans and the like. “The rep can help the client craft a statement,” says Bradley. “It could be something like, ‘This money has turned out to be a much more complex issue than I anticipated. I’m trying to figure it all out with my advisor. In the meantime, I won’t be making any new investments.’” Pagliarini suggests his clients instruct anyone who asks them for money to “call me so that I can be the bad guy.”
You can read the full article here: Sudden Wealth Syndrome.
About the Sudden Wealth Financial Advisor
Robert Pagliarini, PhD, CFP®, EA has over 26 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.