Powerball, mega-million, the daily lotto – the stuff of dreams.
Sadly, financial advisors know the truth: winning big in the lottery rarely turns out well and in fact, bankruptcy is a common fate for the purported winners. It doesn’t have to run that way, as long as the lucky few seek professional help. Cue your chance to make the storybook ending come true.
Our featured author knows the culprit: societal expectations and the common definitions of happiness in the world of riches. If you want to live large, you need a spacious house, a flash car, an opulent wardrobe and glittering jewelry. These things show you’ve arrived. Lottery winners usually flash with the cash, big time, right away – tomorrow be damned. So begins the slide into insolvency.
Some winners take what seems the sensible route: they invest their windfall in the hopes of gaining an even bigger reward, just like the wealthy folks do. Unused to big money, they commonly fall prey to bad ideas – even malicious advice of the criminal kind. The waters are full of sharks and the end is often painful and distressingly messy.
The solution, says our expert, can be found in the practice of behavioral wealth management. Reputable advisors need to help clients who’ve experienced a windfall – and it might not be the lottery, a sudden inheritance can be just as fortunate and risky – understand what they really want from life, the things that will support true happiness.
Clients must also understand their preprogramed ideas about money – thoughts formed by experience, messages from the media, and perhaps the life lessons of parents who grew up in more parlous times. Accepted wisdom might not be so smart when it comes time to manage millions today. A trusted advisor can help reshape their thinking, so they can make truly wise decisions when investing their new-found fortune.
For more information, please read:
Here’s Why Lotto Winners Often End Up Bankrupt | Wealth Management