We have all seen or heard instances where large lottery wins have changed people adversely. Many lose it all.
It seems that sudden big money causes problems. Most of those are the result of never having had experience with large usable sums. It is a different world when your impulse purchase can be an S-class Mercedes instead of a chocolate bar.
For the empathetic, there will be no shortage of newly discovered relatives and assorted pitchmen. Life will be nothing like it was before.
Money does not solve problems, it merely substitutes the new problems of too much money for the old ones of too little.
The trick is to discover the meaning of money you don’t need to spend today.
After cashing the ticket, the next few steps should be straightforward.
But you might inherit enough money to cause some problems. The process is the same but this time you get to do some of the steps before you see the money. Think strategy, advisors, and lifestyle needs.
What would happen if you give a 7-year-old $500 with no limits on what they could do with it? Strangely many adults behave the same way.
Financial literacy is about attitudes as well as details. Schools don’t teach that.
Young professional athletes, music performers, and actors seem to have the same problems. Helpers to spend the money. New sources of previously unaffordable excitement. Cars, boats, drugs, booze and jewelry all appear often enough to know they are a problem.
Author, Harriet Ward Beecher, of “Uncle Tom’s Cabin” fame had a brother, clergyman Henry Ward Beecher. He died in 1887 and offers this enduring thought.
A man can no more make money suddenly and largely, and be unharmed by it, than one could suddenly grow from a child’s stature to a man’s without harm.
The boy scouts have it figured out. Their motto is “Be Prepared.” Many of us forget to acquire the skills and thinking patterns that help us.
It is never too late to start.
Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.
In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.
Please be in touch if I can help you. firstname.lastname@example.org 866-285-7772