5 Tips for Managing Sudden Wealth (2024)

Have you experienced a sudden windfall? If so, you’ll likely deal with financial and emotional changes as you adjust to your new wealth. Here are 5 wealth tips to think about after coming into a large sum of money:

How to Manage Sudden Wealth

1. Take time to process your sudden wealth.
2. Assemble a team of professionals.
3. Consider the tax, liability and investment risks.
4. Manage your emotions and decision-making.
5. Make spending decisions that align with your goals.

We’re here to help you navigate the complexities of managing a sudden windfall. Ultimately, you’ll want to rely on a wealth team to help you manage your new-found wealth.

1. Take time to process your sudden wealth.

Often, when you experience a windfall by selling a business, winning the lottery, receiving an inheritance or hitting it big in some other fashion, you think something needs to be done with the money quickly, or that it needs to be spent. This is rarely the case.

2. Assemble a team of professionals.

You will likely need support related to financial matters and your emotional needs. With various types of windfalls come several potential tax pitfalls as well as the need to create a cohesive investing strategy to provide support long term. While these issues are largely financial, there may also be emotional and personal pressure from friends and family who want to gain access to your newfound wealth. Or, if the windfall comes from an inheritance, you may also be coping with a sense of loss. Having a wealth advisor in these situations is helpful to determine what areas might be a good use of time and money. At the very least, a wealth advisor can help mitigate the different situations you may need to work through. They can also offer support and encouragement in what can be a time fraught with emotional turmoil.

3. Consider the tax, liability and investment risks.

In addition to having a knowledgeable wealth advisor, you will likely need a tax professional. High-net-worth individuals can be subject to a variety of potential tax, liability and investment risks that, with proper planning, can often be mitigated or avoided entirely. A wealth advisor may have a team of individuals they can use to address these issues.

4. Manage your emotions and decision-making.

Coming into a large sum of money suddenly can undoubtedly be an emotional time in your life. It may be accompanied by feelings of grief, joy, guilt, or some combination of these. Before you make any financial decisions, consider reaching out to a trusted professional as you process your emotions.

5. Make spending decisions that align with your goals.

By far, the most important tip to remember during that time is to ensure proceeds are put to good use and employed to provide for your individual needs and goals, both in the present and over the long term. To aid in that process, a wealth advisor can be an asset in terms of managing the funds and in guiding you through emotional challenges.

We’re here to help.

At Mariner Wealth Advisors, your wealth team, tax professionals, risk management, estate planning and trust services professionals are under one roof.

Rather than going to several professionals to manage your sudden wealth, we can bring in tenured professionals to consider every aspect of your wealth and advice you on how to invest, save and spend it in the most tax-efficient way possible.

Learn more about our wealth management services here.

The views expressed are for commentary purposes only and do not take into account any individual personal, financial, legal or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. The opinions are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information.

Some services listed in this piece are provided by affiliates of MWA and are subject to additional fees. Additional fees may also apply for tax planning and preparation services.

Mariner Wealth Advisors (“MWA”), is an SEC registered investment adviser with its principal place of business in the State of Kansas. Registration of an investment adviser does not imply a certain level of skill or training. MWA is in compliance with the current notice filing requirements imposed upon registered investment advisers by those states in which MWA maintains clients. MWA may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by MWA with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about MWA, including fees and services, please contact MWA or refer to the Investment Adviser Public Disclosure website. Please read the disclosure statement carefully before you invest or send money.

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