Some of us are fortunate to have built up or received substantial wealth. Sometimes it is received suddenly, for example as an inheritance much larger than ever expected. Sometimes it is from luck like winning the lottery or having made an unexpected windfall on the sale of some land or a business that did much better than ever anticipated. A lucky break as a musician or sports person can lead to sudden wealth. By wealth I mean the sort of personal wealth that is classified as UHNW (Ultra High Net Worth) which means owning assets of $30million or more, or HNW (High Net Worth) which means about $5-30million.
While this is a great problem to have, it exposes one to a whole new range of isssues that need serious consideration if the wealth is to be preserved, firstly for oneself and immediate family, and secondly for future generations. The skills needed to manage the wealth are completely different to the skills, if any, that were needed to generate it in the first place.
“The world at large is extremely good at taking money away from those who do not know how to keep it” as many people who suddenly acquired substantial wealth learned the hard way when they as suddenly found that the money seemed to have disappeared! A vast number of ‘experts’ will happily make themselves available to advise you on how to invest your money as you may have discovered.
I have some personal experience in this area which I look forward to sharing with others in similar circumstances in the hope that we all learn from it. I will add my thoughts to this blog from time time and invite comments from anyone who is interested.