Honey, We're Rich!
Say what, dear reader? You have just been blessed with a humongous liquidity event?
After decades of work and a bit of luck you "suddenly" have millions, perhaps even tens or hundreds of millions of dollars in investible wealth after selling your business or going public.
You are now officially rich, and it feels great.
But wait. What's that? Obscure family members you never knew existed are beseeching you for "loans"; allegedly good causes from Missoula to Mozambique are demanding donations; sketchy financial "advisors" are bombing your email and phones with "once-in-a-lifetime opportunities."
First Things First
We've recruited family office investment heads and advised on selecting wealth-management firms. But it works both ways. We listen very carefully to our clients and learn a lot from them.
Here is some advice from clients who have been through it.
- The very first thing. Hire a tough, experienced lawyer who is used to dealing with wealth managers, brokers, and solicitors. (Not just the firm who helped you with routine legal chores on the way up.) It will be money well spent and you won't regret it. You will need a real pro to run interference for you against the sharks.
- The very next thing. Hire a reliable and reputable accountant who understands the complexities of wealth-management. You will need financial controls and a voice of caution. Dollars can slip away fast without an experienced check on your newly-rich exuberance.
- Take your time. No sudden moves. Think about how to organize your affairs, your objectives, impact on family-members and upcoming generations.
- Establish a realistic spending rate. And stick to it. One rashly-purchased yacht, jet, or hobby-ranch can punch a surprisingly big hole in your seemingly-unsinkable new fortune.
Fortune and Fate
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