Adults, Sudden Wealth and Consequences:
Avoiding Hidden Pitfalls
Sudden Wealth Can Cause Sudden Problems
About 78 percent of former NFL players have gone bankrupt by the time they have been retired for two years, and about 60 percent of former NBA players go broke with in five years of retirement. Also the majority of lottery winners go bankrupt with in 5 years. Professional athletes, celebrities and others who acquire sudden wealth desperately need guidance from professional managers and agents, team managers and other professionals. Your clients need guidance to be more responsible and savvy in how they invest, save and spend the substantial sums they acquire in a short time.. This workshop will help your clients to understand the “business of wealth.”
Athletes, celebrities, lottery winners, or anyone who comes into sudden fame and fortune will encounter a new environment that will be foreign to most and difficult to navigate for even the most well-adjusted person.
Fame and fortune often bring out family, friends, philanthropists, wannabe entrepreneurs in need of seed capital, investment advisors and a long list of people with outstretched hands. Guilt, generosity, lack of investment acumen, and enthusiasm about new-found wealth often lead to bad decisions that drain the fortune before its owner has a chance to truly understand its power and limitations. In addition, often sudden wealth leads to conspicuous consumption and out-of-control spending.
- If you are a professional sports team manager or agent
- If you are a manager or agent working with celebrities
- If you are an investment manager or advisor, accountant or lawyer for athletes or celebrities
- If you have responsibility in any way for a group of people who will acquire relatively sudden wealth
Give recent recipients of sudden wealth one more gift:
A “Sudden Wealth Workshop”
Sponsor a special one- to two-day program for your clients who are joining the ranks of the high net worth community to understand the wonderful position they are in, and at the same time understand the dark side of the wealth. Using the research and customizing a set of techniques, case studies and tools, based on their bookKids, Wealth & Consequences,our program will help your clients explore:
- What money is for?
- What is a sustainable spending rate? At what rate should I be spending?
- How can I manage investments and trusts with a multi-generational view?
- Can I/should I create Intergenerational Equity (replication of my lifestyle for future generations)?
- How can I become financially savvy about asset allocation, hiring and firing investment advisors/managers?
- How can I deal with family and friends with the outstretched hand?
- What are some thoughtful ways to approach philanthropy (individually and as a family)
- How can I recognize if I or family members develop “out of whack” emotions such as guilt or entitlement?
- How do I and should I define success (beyond the money)?
- What are the true sources of sustainable happiness?
- What are the financial educational needs of my children and how do I make sure they learn techniques such as:
- The Five Financial Values
- Real-time investing
- Spontaneous learning time
- Class time
- Financial and investment games