The DUFF TORNEY Team

Michael Torney, CFP, J.D., LL.M. 
Moneta Partner

Stepping into sudden wealth can be both exciting and overwhelming. It brings so many possibilities along with so many questions to ask and decisions to make. You want to enjoy your new wealth, but you also want to sustain it and steward it well.  

But how?  

If your head is still spinning from a sudden wealth event, here are a few initial steps that can help you navigate your new circumstances: 

1) Be proactive. You don’t need to figure everything out right away. You do need to start assembling a small team of professionals who can help you think through the decisions ahead and who can help you design the life you want. The core team typically to build should includes an attorney, a CPA, and a financial planner.   

2) Slow down. There’s plenty of time to spend your money. First, keep your routines while taking time to think about your wish list. What is most important to you? Possessions? Experiences? Helping others? Starting a business? You need time to plan your path, so avoid making any promises to people close to you. To the extent you can, avoid even telling people about your new situation. Your sudden wealth will likely change how you spend time and money, but that doesn’t need to happen right away. 

3) Identify your negative money scripts. Many people have negative money scripts they tell themselves. These scripts are very powerful and often determine how people spend money. Viewing people with money as “privileged” or “better” is an example of this. It’s not the money that causes most lottery winners to go bankrupt; it’s their own relationship with money. To help stay in control on this front, I highly recommend reading “The Psychology of Money” by Morgan Housel. 

4) Identify what you really need. Start with values. What do you value most? Security? Charity? Family? Significance? Think back to your wish list in item two. Which item on the list corresponds to a value of yours?   

5) Create a plan. You’ve identified your values and the things on your wish list that match up. Now it’s time to sit with your financial planner and design an investment strategy to reach your objectives. A competent planner can show you how achievable your plan is and where the limits are of your new wealth. 

The book recommendation above is intended to be helpful or interesting to the reader. This is not an endorsement or confirmation of any of the content, opinions, or recommendations within the books, or from the authors, stated above. Any trademarks and copyrights of materials presented herein are the property of their respective owners. 

© 2024 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment advisor does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. 

Trademarks and copyrights of materials referenced herein are the property of their respective owners. Index returns reflect total return, assuming reinvestment of dividends and interest. The returns do not reflect the effect of taxes and/or fees that an investor would incur. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. An index is an unmanaged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise.