Transcripts
Welcome to Latorre Dreams and
Speaker:Fortune. My name is Timothy Schultz.
Speaker:This is an interview with financial
Speaker:advisor and author Robert
Speaker:Pagliarini.
Speaker:We will put a link to the YouTube
Speaker:video if you want to watch this
Speaker:interview in its entirety.
Speaker:But without further ado, let's get
Speaker:to the interview.
Speaker:So I am so excited to be joined
Speaker:here today by Robert Pagliarini.
Speaker:He is the author of
Speaker:The Sudden Wealth Solution,
Speaker:also a new book, BadAss
Speaker:Retirement. But I am so excited
Speaker:to welcome Robert here.
Speaker:We're going to be talking about
Speaker:sudden wealth and
Speaker:sudden wealth syndrome
Speaker:as well.
Speaker:And he's also a financial
Speaker:advisor.
Speaker:Let's dive into this.
Speaker:Robert, how are you doing today?
Speaker:Happy to be here, Timothy.
Speaker:This is a topic that I love to
Speaker:talk about. I've written about it
Speaker:and it's something that I
Speaker:have clients who are sudden wealth
Speaker:recipients. And so I've been doing
Speaker:this for a couple
Speaker:of decades now.
Speaker:And so it's a topic that I just
Speaker:love to discuss.
Speaker:Are you able to say roughly how many
Speaker:clients that you've helped
Speaker:or represented that have
Speaker:come across sudden wealth,
Speaker:roughly or.
Speaker:So I started in the financial
Speaker:services industry in
Speaker:96.
Speaker:So it's been it's
Speaker:it's close to 30 years
Speaker:now. So it's it's definitely
Speaker:in the hundreds.
Speaker:Wow.
Speaker:Well, I'm sure I'm sure you have
Speaker:some stories
Speaker:I wanted to ask you.
Speaker:So recently I read your
Speaker:book, which is really,
Speaker:really interesting and insightful,
Speaker:The sudden wealth solution.
Speaker:You compare coming
Speaker:across sudden wealth, such as a
Speaker:lottery win to
Speaker:being in a plane crash or something.
Speaker:That's very shocking.
Speaker:You mentioned a flight freeze
Speaker:or flight response could be foreign,
Speaker:could be shocking.
Speaker:What is shocking
Speaker:about it in working with your
Speaker:clients? I mean, I have my own
Speaker:experience. What's shocking about it
Speaker:and what is your experience with
Speaker:this? Why is it shocking?
Speaker:Yeah, great question, Timothy.
Speaker:So I will I will definitely talk
Speaker:about my experience working
Speaker:with clients.
Speaker:And I'd also like to talk to you
Speaker:about your own experience, because I
Speaker:think that's that's going to be
Speaker:fascinating as well.
Speaker:The reason I write and I wrote about
Speaker:how sudden wealth
Speaker:can be like
Speaker:a plane crash where you
Speaker:have a fight or flight or freeze
Speaker:response is
Speaker:because often times sudden wealth.
Speaker:It comes rather quickly
Speaker:and unexpectedly.
Speaker:Sometimes we have an idea.
Speaker:Maybe we have a business that we're
Speaker:thinking about selling.
Speaker:But oftentimes, if it's an
Speaker:inheritance or if it's a lawsuit
Speaker:settlement, certainly if
Speaker:it's a lottery win
Speaker:or you have some stock options,
Speaker:it really comes out of nowhere.
Speaker:It's not something that you can
Speaker:really anticipate
Speaker:and prepare for.
Speaker:We're all familiar with
Speaker:sort of slow and gradual.
Speaker:Well, I mean, that's 99.9%
Speaker:of the population.
Speaker:That's what they hope to achieve.
Speaker:And that can take months
Speaker:and years and decades of
Speaker:saving in investing.
Speaker:And as your net worth grows,
Speaker:you become a little bit more
Speaker:sophisticated.
Speaker:So this is a very long
Speaker:process where someone
Speaker:can sort of grow into
Speaker:their wealth.
Speaker:Well, that is not the case
Speaker:when it comes to sudden wealth
Speaker:with sudden well, it happens
Speaker:almost overnight and in many cases
Speaker:it is overnight.
Speaker:And so imagine your you're
Speaker:living your life one day.
Speaker:Everything seems normal.
Speaker:You have your friends.
Speaker:You have a certain amount of of
Speaker:investments that you have.
Speaker:You have a job and then
Speaker:everything gets turned upside down
Speaker:because of this sudden wealth.
Speaker:Now you have a situation where you
Speaker:have more money than
Speaker:you ever thought you would.
Speaker:And you have it instantly.
Speaker:And for some people
Speaker:that can really,
Speaker:let's just say, mess with that.
Speaker:Right. Of course they're excited.
Speaker:I mean, everyone will like more
Speaker:money. It gives you an opportunity.
Speaker:It gives you freedom and gives you
Speaker:choices.
Speaker:But at the same time, having that
Speaker:much money instantly,
Speaker:it can really start to
Speaker:affect how you
Speaker:think about your life.
Speaker:Think about your choices, think
Speaker:about maybe the friends that you
Speaker:have.
Speaker:And it can really put someone into
Speaker:a tailspin.
Speaker:And so that's why I really say
Speaker:that when you experience sudden
Speaker:wealth and I've seen it
Speaker:many, many times, there is
Speaker:a predictable pattern
Speaker:of people freezing.
Speaker:They just become frozen with
Speaker:an inability to
Speaker:make decisions, an inability
Speaker:to want to take any action.
Speaker:Because while there is that
Speaker:excitement of,
Speaker:my gosh, you know, I have all of
Speaker:this money now, there
Speaker:is something that comes
Speaker:with it almost simultaneously.
Speaker:And that is
Speaker:a feeling of overwhelm,
Speaker:a feeling of maybe
Speaker:guilt. You know, imagine you
Speaker:you get an inheritance or there's a
Speaker:lawsuit settlement and now all of
Speaker:a sudden you have this money.
Speaker:But the money didn't come from a
Speaker:lottery.
Speaker:It didn't come from selling a
Speaker:business. It came from someone being
Speaker:hurt or maybe even passing away.
Speaker:So you have all of these mixed
Speaker:feelings that can come
Speaker:with it. And and often
Speaker:one of the feelings is
Speaker:that I don't know what to do.
Speaker:Like, I got this money and
Speaker:I. And I feel responsible for it.
Speaker:I don't want to screw it up.
Speaker:So there's a lot of fear as
Speaker:well as excitement.
Speaker:And having those mixed emotions
Speaker:can cause someone to just not
Speaker:want to do anything.
Speaker:Yeah, and you mentioned that you
Speaker:can be I think you compared
Speaker:it to being in a vehicle in
Speaker:a car. You can be in the driver's
Speaker:seat or the passenger seat.
Speaker:What do you mean?
Speaker:And how do you take control of the
Speaker:situation if this happens
Speaker:or has happened to anybody listening
Speaker:or watching today?
Speaker:If you come across sudden wealth,
Speaker:whether it's an inheritance or a
Speaker:lottery win or something else, how
Speaker:do you take control?
Speaker:Yeah, that is such a good question,
Speaker:Timothy. I mean, that is the
Speaker:first principle in the
Speaker:book. It's take control.
Speaker:And in some people will find that
Speaker:a little odd. Like, why would that
Speaker:be the very first thing?
Speaker:There's so many, so many other
Speaker:sort of steps and things
Speaker:to think about. But why take
Speaker:control?
Speaker:And the reason I put it as number
Speaker:one is because I've seen situations
Speaker:where people did not
Speaker:take control. They didn't fully
Speaker:appreciate or understand that
Speaker:this is their money and that
Speaker:it's fine that you you have
Speaker:attorneys who help you, who
Speaker:tax experts, financial advisors.
Speaker:You have your team of people.
Speaker:That's great. I recommend it.
Speaker:And at the same time,
Speaker:it's still your
Speaker:money. It's still your
Speaker:responsibility.
Speaker:You need to make sure that you're
Speaker:finding the right people.
Speaker:It all comes down to you.
Speaker:And I cannot stress that
Speaker:enough that taking
Speaker:control doesn't mean
Speaker:that you have to have all the
Speaker:answers because, of course, you're
Speaker:not going to.
Speaker:You need experts in.
Speaker:Eagle in tax and and in
Speaker:finance to be able to help you
Speaker:so you don't have to know
Speaker:everything, but you do have
Speaker:to appreciate the fact that it
Speaker:it does all come down to you
Speaker:and and I and I think for
Speaker:too many people,
Speaker:they get in a situation where they
Speaker:they have sudden wealth
Speaker:and they hire a bunch
Speaker:of people and they think
Speaker:that they're going to fix everything
Speaker:or solve everything or take
Speaker:care of everything.
Speaker:And while they, of course,
Speaker:can help.
Speaker:I don't want you to rely
Speaker:and relinquish all of
Speaker:your responsibility on to
Speaker:them.
Speaker:They're there to help you.
Speaker:But at the same time, in
Speaker:your core, you really have to
Speaker:understand this is yours.
Speaker:And you make the decisions, you
Speaker:hire, you fire.
Speaker:It's ultimately on
Speaker:you to make this
Speaker:work.
Speaker:And it's for the
Speaker:clients who I've seen who've had
Speaker:that mindset.
Speaker:It just puts them in a in a position
Speaker:of strength.
Speaker:It gives them a little bit more
Speaker:confidence rather than,
Speaker:well, someone else will take care of
Speaker:that.
Speaker:And I'm sure we've all read
Speaker:just that, the horror
Speaker:stories of people being taken
Speaker:advantage of.
Speaker:And I don't ever want
Speaker:to see that happen to somebody.
Speaker:And unfortunately, I think
Speaker:when someone gets taken advantage
Speaker:of, they've given
Speaker:up a little bit too much of their
Speaker:control and their power.
Speaker:And so what what you mentioned
Speaker:in the book I talk about
Speaker:as being the driver or being the
Speaker:passenger.
Speaker:And in your sudden, well
Speaker:journey, I think it makes sense
Speaker:at some times to be the driver,
Speaker:be the driver when it comes to
Speaker:researching your team, when it comes
Speaker:to hiring your team, when it comes
Speaker:to asking really tough questions,
Speaker:when it comes to monitoring
Speaker:your investment statements,
Speaker:when it comes to making
Speaker:sure that they're doing what they
Speaker:say that they're doing.
Speaker:But it also makes sense at
Speaker:times to be the passenger
Speaker:in the vehicle.
Speaker:And when you're the passenger, it's
Speaker:your asking the questions
Speaker:and you're relying on their
Speaker:expertise and
Speaker:you're getting different opinions
Speaker:on certain things.
Speaker:And so it's that mix of
Speaker:knowing when to take control
Speaker:and also knowing when to
Speaker:sit back and lean
Speaker:on the experts.
Speaker:And it can be really difficult for
Speaker:me. I know from my own experience
Speaker:and a lot of people I've met very
Speaker:difficult to trust experts
Speaker:and people to help you behind the
Speaker:scenes.
Speaker:If you win a major prize or
Speaker:something or an inheritance or
Speaker:anything.
Speaker:So I completely
Speaker:agree with you and empathize.
Speaker:I completely agree that most people
Speaker:need experts behind the scenes.
Speaker:But who do you need and
Speaker:how do you find the right people
Speaker:that you can trust?
Speaker:Yeah, that's that's a great
Speaker:question. I do think
Speaker:for the majority of situations,
Speaker:you do need experts
Speaker:who can help you, especially
Speaker:early on, navigate
Speaker:if there are some legal issues,
Speaker:if there are tax issues, which there
Speaker:usually are, and then
Speaker:when it comes to investments and
Speaker:cash flow, things like that, if
Speaker:you already have that experience,
Speaker:great.
Speaker:But I'm telling you right now, I've
Speaker:been doing this for almost 30 years.
Speaker:I wrote a book on Sudden well,
Speaker:if I won the lottery tomorrow,
Speaker:you better bet I
Speaker:would have a team of experts
Speaker:who could help guide me.
Speaker:Maybe not so much on the financial
Speaker:side, because that's what I do day
Speaker:in and day out.
Speaker:But absolutely, on the legal
Speaker:on the back side, it does make
Speaker:sense to get your team together.
Speaker:And that team, I call it the the
Speaker:Triad.
Speaker:It's really an attorney,
Speaker:a tax expert and a financial
Speaker:expert. I think you've got
Speaker:most of your bases covered.
Speaker:You will, of course, maybe get some
Speaker:insurance experts, things like that.
Speaker:But for the most part, though, those
Speaker:are the core three that you need.
Speaker:But the big question is always,
Speaker:who are you going to trust?
Speaker:And that is a very, very
Speaker:tough question to answer.
Speaker:I would actually say
Speaker:don't trust anyone
Speaker:if I won the lottery,
Speaker:50 million, $100 million,
Speaker:I wouldn't put myself in a
Speaker:situation where I would have to
Speaker:trust anyone.
Speaker:What I would suggest instead is
Speaker:make sure that the experts that you
Speaker:hire, you don't necessarily
Speaker:have to trust them, although
Speaker:that helps, but
Speaker:create a situation where it's not
Speaker:required. Your trust is not required
Speaker:for them to provide
Speaker:you with advice.
Speaker:So that means making sure that you
Speaker:have.
Speaker:Maybe other folks
Speaker:looking at your situation.
Speaker:You can hire independent consultants
Speaker:who simply
Speaker:are providing oversight
Speaker:and making sure that the people who
Speaker:say that they're doing the things
Speaker:that they're doing really are doing
Speaker:those things and that you're not
Speaker:being taken advantage of, almost
Speaker:like getting an audit.
Speaker:You know, public companies, they are
Speaker:audited. They don't they don't just
Speaker:issue their earnings and
Speaker:people believe them.
Speaker:They have an independent firm who
Speaker:comes in and will audit their
Speaker:numbers. They want to make sure that
Speaker:what they're saying they're doing.
Speaker:They really are.
Speaker:And so I'm a big proponent of making
Speaker:sure that you have other
Speaker:sets of eyes looking
Speaker:at your situation.
Speaker:I think that's really important.
Speaker:And then secondly, maybe
Speaker:even more important is not
Speaker:putting yourself in a situation
Speaker:where they can take advantage
Speaker:of you.
Speaker:So in the book and I and I've spoken
Speaker:about this a lot, especially when it
Speaker:comes to financial advisers,
Speaker:I mean, sadly, you see
Speaker:situations where
Speaker:financial advisers will take
Speaker:advantage of others.
Speaker:They will list themselves
Speaker:on the account.
Speaker:They will, you know, pay
Speaker:bills for you and at the same time
Speaker:maybe pay some of their own bills
Speaker:out of your your account.
Speaker:And so I say
Speaker:put up controls, accounts
Speaker:where they don't have access to all
Speaker:your funds. Make sure you that you
Speaker:have a custodian that is sending
Speaker:you monthly statements so you can
Speaker:verify. You can see the assets that
Speaker:you have.
Speaker:You can see if there were
Speaker:withdrawals throughout the month.
Speaker:And it's not a statement that your
Speaker:financial advisor is sending you.
Speaker:Because as we know, through Madoff
Speaker:write his firm, they
Speaker:had custody of the assets
Speaker:and he would also send statements.
Speaker:And of course, we know those
Speaker:statements were B.S.
Speaker:They weren't actual
Speaker:they didn't represent reality.
Speaker:So make sure that you have a
Speaker:separate custodian from your advisor
Speaker:so that you can log in to that
Speaker:account. Maybe at Schwab or Fidelity
Speaker:or whoever it is.
Speaker:And it's separate from your advisor.
Speaker:So create controls
Speaker:for yourself to make sure that
Speaker:if for whatever reason, someone
Speaker:on your team is trying to take
Speaker:advantage of you, that
Speaker:it's very limited in the scope of
Speaker:what they could do to you,
Speaker:and that you have other people
Speaker:making sure that you are
Speaker:you're not being taken advantage of.
Speaker:Yeah, that makes complete
Speaker:sense. And I do want to ask about
Speaker:how that happens with people when
Speaker:they get some people when they get
Speaker:taken advantage of.
Speaker:But before I get to that, if you
Speaker:are seeking help
Speaker:from people so you
Speaker:come across an inheritance or when a
Speaker:lottery of 50 million tomorrow,
Speaker:where do you even look?
Speaker:A lot of people wonder, where should
Speaker:you look?
Speaker:If you're looking for an attorney.
Speaker:Of course you would.
Speaker:You could go to the Bar Association
Speaker:website, put in your zip code and
Speaker:try to find someone who's local to
Speaker:you.
Speaker:I would always make sure that you
Speaker:are interviewing several,
Speaker:whether it's attorneys, CPAs
Speaker:or financial advisors.
Speaker:You can you can get a referral.
Speaker:Maybe you already have an attorney
Speaker:that you know and trust.
Speaker:Maybe you have a business, you have
Speaker:some some contacts and
Speaker:the maybe the the
Speaker:the tax world, you can
Speaker:get a referral to
Speaker:an attorney, a CPA, a financial
Speaker:advisor.
Speaker:But then that's that's only the
Speaker:first step.
Speaker:Sadly, I see too many
Speaker:people get a referral and think
Speaker:that's that's the end of their due
Speaker:diligence. Like, well,
Speaker:so-and-so suggested this person, so
Speaker:I'm going to hire that person.
Speaker:That's not where it ends.
Speaker:That's just the beginning
Speaker:of of the due diligence that you
Speaker:should be doing.
Speaker:On, on your, your
Speaker:team.
Speaker:So making sure that they don't have
Speaker:any regulator or red
Speaker:flags. So, for example, as a
Speaker:financial advisor, you can go
Speaker:to FINRa Brokercheck
Speaker:and you can see does this
Speaker:advisor or does this firm,
Speaker:have they had any, you know,
Speaker:regulatory issues as the SEC
Speaker:buying them for something?
Speaker:Have they been sued before?
Speaker:They even have a license, right.
Speaker:I mean, that's that's a great first
Speaker:step. Someone says they're a
Speaker:certified financial planner.
Speaker:Okay.
Speaker:I always am
Speaker:in the mindset
Speaker:of don't trust,
Speaker:verify.
Speaker:And so.
Speaker:Okay, you say you have a CFP.
Speaker:Go on to the CFP website.
Speaker:Search for their name.
Speaker:Are they there? If they're not,
Speaker:you've got some explaining to do.
Speaker:Same with the CPA.
Speaker:It's easy to type CPA after
Speaker:your name.
Speaker:It's much harder to actually have
Speaker:the designation.
Speaker:So you can you can do these
Speaker:very quick Internet searches
Speaker:to verify
Speaker:that they have what they
Speaker:say that they have.
Speaker:So that would be another part of the
Speaker:due diligence process is making sure
Speaker:that there aren't any red flags.
Speaker:They haven't been sued.
Speaker:There's nothing sort of nefarious
Speaker:going on behind the scenes.
Speaker:Then ask the right questions.
Speaker:So I've written about this in the
Speaker:book. There's if you don't want to
Speaker:get the book, look online,
Speaker:type in my name and type in
Speaker:financial advisor questions
Speaker:to ask.
Speaker:And I have a dozen or so questions
Speaker:that you can simply just read
Speaker:down the list, ask the right
Speaker:questions.
Speaker:Make sure that they're a fiduciary
Speaker:when it comes to financial advisors.
Speaker:That's really, really key,
Speaker:is making sure that the person
Speaker:that you are hiring to help
Speaker:you manage your investments
Speaker:has to have your best interests at
Speaker:heart.
Speaker:And you would think when I when I
Speaker:tell other people outside this
Speaker:industry that they need a
Speaker:fiduciary, they think, well, isn't
Speaker:every financial advisor a fiduciary
Speaker:like, I'm paying this person to help
Speaker:me with my investments?
Speaker:Obviously, they
Speaker:have to have my interests in mind.
Speaker:Sadly, that is not the case.
Speaker:There are many.
Speaker:In fact, the majority of financial
Speaker:advisors are not fiduciary.
Speaker:They do not have to have your best
Speaker:interests and
Speaker:they don't have to have your best
Speaker:interests in mind
Speaker:or at the forefront when they're
Speaker:providing you with advice.
Speaker:It's absolutely crazy to think
Speaker:that that's legal, but
Speaker:unfortunately it is.
Speaker:So that's why you have to have
Speaker:a fiduciary, someone
Speaker:who will always put your
Speaker:interests ahead ahead of their own.
Speaker:So that's that's very key.
Speaker:And then, of course, you want
Speaker:to make sure that be
Speaker:the advisor that you have,
Speaker:whether it's the CPA or the
Speaker:attorney has some
Speaker:expertise in the area that
Speaker:you're hiring them for.
Speaker:I mean, there are hundreds of
Speaker:thousands, maybe millions,
Speaker:I don't know of attorneys out there,
Speaker:but if you're looking for an
Speaker:attorney to maybe help you with some
Speaker:tax situation
Speaker:when it comes to maybe
Speaker:a lawsuit settlement.
Speaker:There is a very small
Speaker:and narrow group of specialized
Speaker:tax attorneys who can help you
Speaker:with that.
Speaker:So just because they're attorney
Speaker:doesn't mean that they can they can
Speaker:help you and guide you through this
Speaker:process.
Speaker:So that's another key
Speaker:aspect, is making sure
Speaker:that you're your expert
Speaker:in really help you and has
Speaker:experience in
Speaker:the area in which you need.
Speaker:It's really shocking to hear
Speaker:you say that most financial advisors
Speaker:are not fiduciary is
Speaker:because it does phrase so
Speaker:important it more accountable.
Speaker:Imagine going to your doctor and the
Speaker:doctor's like, Well, you know, I
Speaker:think we should do this procedure.
Speaker:And you're like, Well, okay, yeah,
Speaker:that makes sense.
Speaker:But but what if, you know, the
Speaker:doctor was like, Hey, listen, you
Speaker:know, I'm getting X dollars for
Speaker:this.
Speaker:Yeah, maybe it'll help, maybe it
Speaker:won't. But I don't need to put
Speaker:my patients interests ahead of
Speaker:my own.
Speaker:I mean, that would be absurd.
Speaker:Sadly, in the financial services
Speaker:industry, that's our
Speaker:reality, that
Speaker:most financial advisors are not
Speaker:fiduciary.
Speaker:So that is the first question
Speaker:to ask.
Speaker:Are you not
Speaker:just a fiduciary but a
Speaker:full time fiduciary?
Speaker:So Tony Robbins, you're probably
Speaker:familiar with him.
Speaker:He's written a lot of books.
Speaker:He and, you know, I
Speaker:think he's amazing at what he does.
Speaker:And I love the fact that
Speaker:he brought it to people's attention,
Speaker:this idea that you need
Speaker:a fiduciary and the fact that most
Speaker:advisors are not, because I
Speaker:remember a decade ago,
Speaker:certainly two decades ago,
Speaker:I would stress, you know,
Speaker:you really need a fiduciary.
Speaker:And prospects who
Speaker:I would be speaking with, they
Speaker:didn't even know what I was talking
Speaker:about. They never heard the word
Speaker:fiduciary. They had no idea what I
Speaker:was talking about.
Speaker:And now I'm
Speaker:it's amazing what's happened,
Speaker:because now if I'm talking
Speaker:to a potential client, they
Speaker:will bring it up.
Speaker:They will say, so, Robert,
Speaker:are you a fiduciary?
Speaker:And I always have to chuckle because
Speaker:for years no one even knew what one
Speaker:meant. And so I will I
Speaker:will give credit, I think, for a
Speaker:lot of that, too, to Tony
Speaker:Robbins, because he really opened a
Speaker:lot of people's eyes.
Speaker:When you were looking for financial
Speaker:advisers or attorneys
Speaker:people to help you behind the
Speaker:scenes.
Speaker:How do you find the right rate?
Speaker:Because that's another thing that a
Speaker:lot of people are nervous about
Speaker:if they are to win a major
Speaker:lottery jackpot.
Speaker:How do you find someone that's not
Speaker:just going to rip you off or try to
Speaker:take advantage of you?
Speaker:Yeah, I mean, you win the lottery,
Speaker:you need some help.
Speaker:And you trying to, let's say an
Speaker:attorney and they say,
Speaker:okay, you know, I'm
Speaker:going to charge you $2,000 an hour
Speaker:and you think yourself, you know,
Speaker:prior to this, I made $2,000 a
Speaker:month. And this guy wants $2,000
Speaker:for an hour.
Speaker:But you have nothing.
Speaker:You have no perspective.
Speaker:You don't know if that's
Speaker:low.
Speaker:Maybe that's a deal.
Speaker:You don't know if that's
Speaker:ridiculously high.
Speaker:Maybe he's trying to rip you off.
Speaker:So the only way to know.
Speaker:Is by getting and talking to
Speaker:multiple attorneys and getting
Speaker:multiple quotes, because
Speaker:the $2,000 guy might
Speaker:say that that's normal.
Speaker:But then after talking to 2
Speaker:or 3 other attorneys who have
Speaker:a similar background, similar
Speaker:experience and
Speaker:similar expertise, you find
Speaker:that actually, you know,
Speaker:maybe $500 an hour
Speaker:seems to be where most
Speaker:of them are gravitating.
Speaker:Well, now all of a sudden, you have
Speaker:perspective and and you
Speaker:know that
Speaker:the $2,000 an hour attorney.
Speaker:He maybe was trying to
Speaker:mislead you or certainly
Speaker:wasn't being honest.
Speaker:If you said that that was sort of
Speaker:the going rate in.
Speaker:But the only way to know that
Speaker:is to sort of triangulate
Speaker:and figure out.
Speaker:And by getting other
Speaker:proposals, whether
Speaker:they're in the realm of it's
Speaker:normal or not.
Speaker:So, for example, in the financial
Speaker:investment management world,
Speaker:if someone said, you
Speaker:know, you know, we charge 3% of
Speaker:the assets that we manage for a
Speaker:client, 3%,
Speaker:you know, if you're not in this sort
Speaker:of world, you might think, well, 3%
Speaker:doesn't sound like very much.
Speaker:So I guess that seems fair.
Speaker:But then if you got one or 2 or
Speaker:3 other proposals
Speaker:from advisors, you would find that
Speaker:3% is is
Speaker:ridiculously high and
Speaker:that most people would be at 1%
Speaker:or less.
Speaker:And so that's really the only
Speaker:way to ascertain whether
Speaker:the person is providing you with a
Speaker:fair quote
Speaker:or if they're trying to take
Speaker:advantage of you.
Speaker:And and honestly, I would also
Speaker:do the same in reverse if
Speaker:you got a really low quote,
Speaker:someone said, yeah, you know what,
Speaker:we charge $100 an hour for our legal
Speaker:services.
Speaker:Yet everyone else was in the $600
Speaker:range.
Speaker:I would question that as well.
Speaker:You don't want you don't want to
Speaker:be on the outside,
Speaker:Right. You want to be sort of in the
Speaker:realm of this seems reasonable.
Speaker:And again, the only way to determine
Speaker:that is to get multiple bids.
Speaker:And is that a is it better
Speaker:to be charged
Speaker:from a percentage
Speaker:or a rate percentage
Speaker:of what you're investing or
Speaker:like an hourly rate or what what
Speaker:is in the best interest
Speaker:of the investor, would you say?
Speaker:Yeah. So when it comes to financial
Speaker:advice and investment management,
Speaker:there are a few different ways
Speaker:that an advisor can charge.
Speaker:The sort of, the antiquated
Speaker:way that you don't see
Speaker:too often anymore
Speaker:is an advisor who only
Speaker:charges on commissions.
Speaker:So a commission is basically
Speaker:a fee that is earned
Speaker:when something is bought or sold.
Speaker:So maybe they buy or sell an ETF
Speaker:or a mutual fund or an insurance
Speaker:policy.
Speaker:So the advisor will earn
Speaker:a percentage of
Speaker:that transaction.
Speaker:And what we're
Speaker:not seeing that a whole lot anymore
Speaker:because as you can imagine, there is
Speaker:an inherent conflict of interest.
Speaker:If the only way I'm paid is
Speaker:if I sell you something,
Speaker:well, I'm probably
Speaker:going to try to sell you a lot of
Speaker:stuff all the time, whether it makes
Speaker:sense or not.
Speaker:Right. That's what an unscrupulous
Speaker:commission based advisor
Speaker:would do.
Speaker:So that's that's not something that
Speaker:you see too often anymore.
Speaker:Another option is
Speaker:you charge hourly.
Speaker:Kind of like an attorney or maybe a
Speaker:CPA where
Speaker:you come in and you meet
Speaker:with them. Maybe you charge them x
Speaker:x dollars per hour,
Speaker:and that can work in some
Speaker:cases.
Speaker:I find that that's that's
Speaker:a decent strategy.
Speaker:If you, you know,
Speaker:y you're going to see the person,
Speaker:you have a set of questions that you
Speaker:need to ask.
Speaker:Maybe there's a particular issue
Speaker:or problem and you come to
Speaker:them, you get the advice,
Speaker:you leave.
Speaker:You implement it yourself and
Speaker:you pay them whatever the hourly
Speaker:rate was and that's that
Speaker:and sort of the relationship end
Speaker:there.
Speaker:The other very common
Speaker:method is for financial
Speaker:advisors is like you mentioned, the,
Speaker:the asset under management
Speaker:approach.
Speaker:And so their advisor
Speaker:is managing your assets for you
Speaker:on an ongoing basis.
Speaker:So it's not sit down with them for
Speaker:an hour and then leave.
Speaker:It's they are investing
Speaker:for you.
Speaker:For the days, weeks, months and
Speaker:years ahead.
Speaker:And the advisor then charges
Speaker:a percentage of whatever
Speaker:assets that they are managing.
Speaker:And as I mentioned earlier,
Speaker:that percentage is usually
Speaker:1% of what they're managing
Speaker:or less.
Speaker:Usually the more that they're
Speaker:managing, the lower the
Speaker:percentage that they're charging.
Speaker:Does that make sense?
Speaker:Yeah, absolutely.
Speaker:That does make sense.
Speaker:And I do want to ask
Speaker:in general what people should be
Speaker:investing in when you win a major
Speaker:lottery jackpot.
Speaker:Of course. I have my own opinion,
Speaker:but that's what you do all the
Speaker:time. So I'm sure you have
Speaker:some a lot of knowledge in that
Speaker:area. But also,
Speaker:before we get to that, when
Speaker:people come across sudden wealth,
Speaker:some people experience what is
Speaker:known as sudden wealth syndrome, a
Speaker:psychological term, what
Speaker:is sudden wealth syndrome
Speaker:and how does it affect some
Speaker:people?
Speaker:Yeah, it it's it's
Speaker:sad.
Speaker:But you do see that sometimes
Speaker:sudden wealth syndrome.
Speaker:It was a term
Speaker:coined by a therapist.
Speaker:And it what it really means,
Speaker:it's really just a broad based
Speaker:term for when
Speaker:someone experiences
Speaker:a sudden well a bad
Speaker:and either they
Speaker:they freeze with an inability
Speaker:to make any decisions or take any
Speaker:action or it's
Speaker:possible that they may have some
Speaker:guilt.
Speaker:Again, I go back to
Speaker:that situation and I have many
Speaker:clients where this has happened,
Speaker:where someone has become injured
Speaker:or has passed away,
Speaker:and now there is a lawsuit
Speaker:settlement.
Speaker:And you know, one of my clients
Speaker:who lost her husband
Speaker:when she the day that she
Speaker:got the settlement, it was wired
Speaker:into her account.
Speaker:And.
Speaker:There was there was
Speaker:a feeling of
Speaker:certainly not happiness or
Speaker:joy. Like I look at this money
Speaker:and look a look at what I can do
Speaker:with my life.
Speaker:It was the exact opposite is
Speaker:exactly what you would imagine.
Speaker:It was just a feeling of
Speaker:just.
Speaker:Just guilt.
Speaker:Like, I can't believe
Speaker:we settled and
Speaker:my husband is gone.
Speaker:And I've got some money in my bank
Speaker:account. Like, there was this.
Speaker:Inability to sort of reconcile
Speaker:that.
Speaker:This money was paid because
Speaker:our husband was no longer here.
Speaker:And she even said she said
Speaker:this money.
Speaker:It feels like blood money
Speaker:to me. It feels like
Speaker:it feels dirty, like
Speaker:I feel badly.
Speaker:And and the money just looking
Speaker:at this, the the the account
Speaker:balance makes me sick
Speaker:like this money is tainted.
Speaker:And so that's a situation
Speaker:where it's it's
Speaker:problematic because
Speaker:of course there is a loss.
Speaker:There is grief that's happened.
Speaker:And at the same time, we want to
Speaker:make sure that we use this money
Speaker:in a way that somehow
Speaker:can improve our lives
Speaker:and to somehow extract.
Speaker:From the money that we've lost,
Speaker:you know, this loved one, and
Speaker:that if we're able to use this
Speaker:money, maybe take some time off
Speaker:from work, maybe go on a trip
Speaker:somewhere, maybe do some meditation
Speaker:retreat. They don't view the money
Speaker:as well.
Speaker:I've lost my husband, and now I.
Speaker:I can't use this money because it
Speaker:makes me feel dirty.
Speaker:It's helping them understand
Speaker:that.
Speaker:The money can help them
Speaker:sort of deal
Speaker:with the situation that they're in.
Speaker:So that's just one example of
Speaker:how sudden.
Speaker:Well.
Speaker:Can be viewed and can really
Speaker:affect someone's life.
Speaker:Other examples are
Speaker:and this is the biggest, I
Speaker:think, regret when it comes
Speaker:to sudden wealth, especially
Speaker:with lottery winners.
Speaker:I think I find us more with lottery
Speaker:winners than probably
Speaker:any other sudden
Speaker:wealth event,
Speaker:and that is
Speaker:relationships can change.
Speaker:And so, you know, you've probably
Speaker:heard of the lottery curse.
Speaker:Well, what's the lottery curse?
Speaker:I mean, we all want to win the
Speaker:lottery, right?
Speaker:Millions of people play it.
Speaker:They want to win and then they win.
Speaker:And then they call it a curse.
Speaker:Like what happened?
Speaker:Like why? Why would that be the
Speaker:case?
Speaker:Well, it's usually because
Speaker:of the relationships and the changes
Speaker:of relationships, because
Speaker:you're living your life.
Speaker:You have a horse that are friends.
Speaker:They trust you. You trust them.
Speaker:There's no ulterior motives.
Speaker:Everything's great.
Speaker:You win the lottery.
Speaker:Suddenly, either you change.
Speaker:Or they change.
Speaker:Or they both happened.
Speaker:And that's where you can have
Speaker:long time friendships, even,
Speaker:you know, romantic relationships
Speaker:where because
Speaker:of the money.
Speaker:And because of the reaction to the
Speaker:money, those relationships
Speaker:can become severed.
Speaker:And that's when people point
Speaker:you out, you know, and say, I wish I
Speaker:wish I never won.
Speaker:Right. Because I had these great
Speaker:friends. I had this great
Speaker:relationship with my spouse,
Speaker:and now I don't have that anymore.
Speaker:Now I'm divorced.
Speaker:My friends don't hang out with me
Speaker:anymore.
Speaker:ET cetera, etc..
Speaker:And so that's one of the principles
Speaker:in the book, is making sure
Speaker:that you go into this sudden
Speaker:wealth event
Speaker:and making sure that you manage
Speaker:those relationships, because that is
Speaker:the worst thing that can happen
Speaker:is now all of a sudden you have
Speaker:money, but you don't have the
Speaker:friends like you used to.
Speaker:But that takes time.
Speaker:In fact, one of my clients whose
Speaker:father passed away,
Speaker:there was another lawsuit
Speaker:settlement.
Speaker:And I worked with him for.
Speaker:I mean, he's still a client, but in
Speaker:terms of helping him manage
Speaker:his relationships
Speaker:for over a year, helping
Speaker:him navigate.
Speaker:The relationships that he had.
Speaker:So here is one example.
Speaker:Here is something that he called me
Speaker:about.
Speaker:He said, We're out to dinner.
Speaker:My group of friends
Speaker:before I had money, like
Speaker:we all just sort of chipped in and
Speaker:we did our own thing.
Speaker:No one bought second a second about
Speaker:it.
Speaker:Now they all know I have the money.
Speaker:So his question was, well,
Speaker:do I offer to pay
Speaker:for everybody?
Speaker:You know, because my friends don't
Speaker:have very much, but I do.
Speaker:So I offer to pay.
Speaker:And if I do that, are some
Speaker:of my friends going to be kind of
Speaker:kind of pissed off like, now
Speaker:you got money, now you want to pay
Speaker:for me?
Speaker:Well, that's. That's kind of
Speaker:awkward.
Speaker:Or the reverse is true.
Speaker:Maybe he sits there.
Speaker:Maybe he only pays for his amount
Speaker:and maybe his friends are like, wow,
Speaker:you know, You know, I'm struggling.
Speaker:I just got fired.
Speaker:I don't have any money.
Speaker:You have all this money.
Speaker:Maybe you should at least offer to
Speaker:pay.
Speaker:Like you're put in these different
Speaker:situations where
Speaker:it's really hard
Speaker:to win.
Speaker:It's really hard to not
Speaker:be in an awkward situation.
Speaker:And the only way
Speaker:to sort of navigate this
Speaker:is to be very open and honest
Speaker:and to have these conversations
Speaker:with your loved ones, your friends,
Speaker:your spouse, whoever it might be,
Speaker:to be very, very open about
Speaker:it, because the worst thing that you
Speaker:can do is start making decisions
Speaker:that you think your friends or
Speaker:loved ones want when they might not
Speaker:or just not do anything,
Speaker:and to not at least have those
Speaker:conversations with them.
Speaker:Does that make sense?
Speaker:It sure does.
Speaker:And I remember
Speaker:when I won a little bit
Speaker:after winning, you know, in
Speaker:my head, I developed this
Speaker:line that I would just tell everyone
Speaker:if they asked for money and
Speaker:just tell them this statement
Speaker:like, I can't help you
Speaker:right now. I'll talk to my financial
Speaker:advisor. And
Speaker:I just it's a blanket rule for
Speaker:everybody. It's nothing against you.
Speaker:It's nothing personal.
Speaker:I just had that.
Speaker:This doesn't matter what they asked
Speaker:for. This is what I was
Speaker:conditioned to say, because there
Speaker:are so many people asking for money.
Speaker:When that happened.
Speaker:And I noticed in your book that you
Speaker:one of the things you suggested was
Speaker:to have
Speaker:a statement and you actually wrote
Speaker:one out within the book.
Speaker:And I've interviewed other winners
Speaker:with similar experiences.
Speaker:What can you expand upon
Speaker:that?
Speaker:Yeah. So, I mean, you're
Speaker:you're ahead of the game on
Speaker:that. And you were very, very smart
Speaker:to to
Speaker:have a preplanned
Speaker:statement because
Speaker:that's one of the issues is
Speaker:you have, again,
Speaker:going back to other clients and
Speaker:their situations.
Speaker:They have money.
Speaker:Everyone knows they have money.
Speaker:And one guy got invited to
Speaker:I think it was a birthday party.
Speaker:And so they're like, well, if
Speaker:I go, I know
Speaker:so-and-so is going to ask me for a
Speaker:loan. I know so-and-so has got this
Speaker:new, you know, investment they're
Speaker:going to want me to participate in.
Speaker:So, you know, I
Speaker:just don't think I should even go
Speaker:into that right there.
Speaker:That is a red flag, right?
Speaker:Because pre sudden
Speaker:wealth, of course, you would have
Speaker:gone. You want to buy it twice about
Speaker:it. Now that you got the money, now
Speaker:you're not going.
Speaker:So now all of your friends
Speaker:who are at the party and you're not
Speaker:they're like, well, you know Mr. Big
Speaker:Shots not come in because, you know,
Speaker:they're too busy spending their
Speaker:money. And that's how you can
Speaker:create these like divides
Speaker:in the relationship.
Speaker:So, yes,
Speaker:you you still should go.
Speaker:But the fear is that they're going
Speaker:to be inundated with all these
Speaker:requests, that it's going to feel
Speaker:very awkward.
Speaker:They don't know what to say and
Speaker:they don't know how to say no, even
Speaker:though they probably want to say no.
Speaker:And it's just going to be
Speaker:a really anxiety
Speaker:invoking situation that they'd
Speaker:rather just avoid.
Speaker:So instead of avoiding it,
Speaker:do what you did, Timothy, And that
Speaker:is have a line
Speaker:that you memorize.
Speaker:Beforehand.
Speaker:And then when you get in that
Speaker:situation and someone's asking you,
Speaker:Hey, Timothy, you know,
Speaker:I've got this really great idea
Speaker:for for a restaurant and but
Speaker:it only requires like $100,000.
Speaker:I think it makes sense for you.
Speaker:Like, you know, it doesn't matter
Speaker:what they ask for.
Speaker:You've got this canned line
Speaker:that you've memorized that you can
Speaker:just spit out at them, that
Speaker:is.
Speaker:That is respectful.
Speaker:Right. It's not you're not telling
Speaker:your friend of 20 years like, that's
Speaker:stupid. I have no interest in that.
Speaker:Right. That's probably not the
Speaker:best way to handle it.
Speaker:But it's firm.
Speaker:It's I always tell clients,
Speaker:never say yes.
Speaker:It's always.
Speaker:Well, you know, let me look into
Speaker:that. Let's talk to my financial
Speaker:advisor about that.
Speaker:You're the goal is to always
Speaker:shift the burden on
Speaker:to somebody else and that somebody
Speaker:else is typically the
Speaker:financial advisor.
Speaker:So be
Speaker:optimistic. Say, hey, that sounds
Speaker:like a you know, it might sound like
Speaker:a great investment that, you
Speaker:know, I wish you a lot of luck as
Speaker:far as an investment.
Speaker:I you know, I obviously don't
Speaker:have enough information.
Speaker:You really need to talk to my
Speaker:financial advisor about it and then
Speaker:leave it there. Then you change the
Speaker:subject, you move on.
Speaker:And I found that and I'm sure
Speaker:you have found that that works
Speaker:really, really well.
Speaker:I been I took it
Speaker:a step further.
Speaker:And when you read the book, you
Speaker:probably saw that I've
Speaker:created a.
Speaker:A.
Speaker:A few hoops
Speaker:for your friends and family and
Speaker:sometimes strangers to jump through
Speaker:if they're looking for a loan or an
Speaker:investment or a gift.
Speaker:And on my website, sudden
Speaker:wealth solution.com.
Speaker:There is a tool called the Money
Speaker:request tool.
Speaker:And what it does is
Speaker:it said
Speaker:they have to basically apply
Speaker:if they want a loan or a gift
Speaker:or an investment from you.
Speaker:They have to talk about
Speaker:the business venture or what the
Speaker:loan is for when they're going to
Speaker:get paid back.
Speaker:Who else is investing?
Speaker:Like, there's this laundry list of
Speaker:things that they have to complete
Speaker:that then get sent to your financial
Speaker:advisor to review so they can make
Speaker:a decision.
Speaker:And what I found is that it's
Speaker:really easy for someone to ask for
Speaker:money.
Speaker:Very, very easy.
Speaker:They have no problem asking
Speaker:for money.
Speaker:But as soon as you say,
Speaker:okay, I understand you
Speaker:want me to make an investment in
Speaker:this thing, go ahead and
Speaker:complete this this application.
Speaker:That's probably going to take them
Speaker:an hour to do.
Speaker:You know, many times.
Speaker:Clients have actually received
Speaker:a completed application in
Speaker:the 20
Speaker:almost nine years I've been doing
Speaker:this. Guess how many times
Speaker:someone has asked for the money?
Speaker:Fine. And said, great.
Speaker:Complete this application.
Speaker:How many of those have been
Speaker:completed?
Speaker:Five
Speaker:zero.
Speaker:My God.
Speaker:Zero.
Speaker:Not a single time.
Speaker:When someone asked for money, did
Speaker:they complete this application?
Speaker:Why is that?
Speaker:For a number of reasons.
Speaker:One, it takes a lot of time.
Speaker:Two, I ask a lot
Speaker:of really hard questions in here
Speaker:about about the investment,
Speaker:what they're going to get paid back,
Speaker:what the risks are, what the
Speaker:opportunity is.
Speaker:You're basically telling them to put
Speaker:together a business plan.
Speaker:I mean, that's really what this
Speaker:questionnaire, this application is
Speaker:all about.
Speaker:And most people.
Speaker:Again, really, really
Speaker:easy to ask for the money, but super
Speaker:lazy. They don't want to go through
Speaker:the hassle.
Speaker:Or when they start answering
Speaker:these questions, they realize they
Speaker:don't have good answers for them and
Speaker:they're like, well, you forget this.
Speaker:They're never going to give me the
Speaker:money.
Speaker:They know that a financial expert
Speaker:is going to look at their answers
Speaker:and they're thinking to themselves,
Speaker:Well, I have no shot of ever
Speaker:getting money, Right?
Speaker:Like that just took a very
Speaker:awkward situation into something
Speaker:that's not even discussed anymore.
Speaker:And if you do this, what you're
Speaker:really doing is you're training
Speaker:people. Just like that statement you
Speaker:used to tell when someone would ask
Speaker:you for something, you have trained
Speaker:them.
Speaker:Because now if they're going
Speaker:to ask you again for something else
Speaker:a week or month or a year later,
Speaker:they know what you're going to say.
Speaker:Talk to my advisor.
Speaker:No one wants to talk to your
Speaker:advisor, right? They just want you
Speaker:to say yes and write a check.
Speaker:So you're training the
Speaker:people around you, what
Speaker:it's going to require for
Speaker:you to help.
Speaker:And so and I'm not suggesting that
Speaker:you don't help people, but this is
Speaker:a separate category.
Speaker:This is a category of people.
Speaker:Someone's asking you for an
Speaker:investment or a loan.
Speaker:That's not helping.
Speaker:That's in the realm of this
Speaker:is an investment that needs to be
Speaker:analyzed and determine if it
Speaker:makes sense or not.
Speaker:Helping a gift, that's
Speaker:something entirely different.
Speaker:But you should still
Speaker:train the people who are asking you.
Speaker:You never say yes.
Speaker:It's always, well,
Speaker:that sounds interesting.
Speaker:But again, I'm going to need
Speaker:to talk to my financial advisor
Speaker:about that because
Speaker:one of the risks when you get sudden
Speaker:wealth is that you
Speaker:or some clients, they don't really
Speaker:know how much money they have.
Speaker:Right.
Speaker:Maybe they've made, you know,
Speaker:$50,000 a year.
Speaker:That was their salary.
Speaker:They're comfortable with the 50,000.
Speaker:They can get their head around it.
Speaker:Or maybe they're an hourly worker.
Speaker:They make $25 an hour, 30 an
Speaker:hour that they understand.
Speaker:That's their perspective.
Speaker:But all of a sudden, they know
Speaker:that they won the lottery.
Speaker:Right.
Speaker:The big billboards
Speaker:said that the jackpot was
Speaker:$300 million
Speaker:and they won the jackpot.
Speaker:They're thinking to themselves,
Speaker:I've got $300 million.
Speaker:Well, first of all.
Speaker:They don't really have $300 million,
Speaker:do they?
Speaker:Right. Because they took the lump
Speaker:sum.
Speaker:No one gets the annuity.
Speaker:They took the lump sum.
Speaker:So let's say it's 150 million.
Speaker:That that's the that's their jackpot
Speaker:lump sum payout.
Speaker:Right. They have $150 Million.
Speaker:But do they really know
Speaker:they pay taxes on that hundred and
Speaker:50 million?
Speaker:Okay. So now they have
Speaker:75 million.
Speaker:Okay, great.
Speaker:So it went from they think in
Speaker:their head they've anchored that
Speaker:they have $300 million
Speaker:when in reality they don't have
Speaker:anything close to 300 million.
Speaker:They probably have somewhere around
Speaker:70, 65, $75
Speaker:million, which is still
Speaker:granted, it's a lot of money.
Speaker:So they see that in their account
Speaker:and they think, wow, 75
Speaker:million, I can do any of it.
Speaker:I can spend as much money as I
Speaker:possibly want for as long as I want.
Speaker:I can gift money to all my friends.
Speaker:I can buy them houses.
Speaker:Like there is an unlimited amount of
Speaker:money because I have $75
Speaker:million.
Speaker:They don't.
Speaker:Understand just how
Speaker:quickly $75 million
Speaker:can go when you have
Speaker:no controls on what you're spending
Speaker:or what you're giving away.
Speaker:And one of my clients called it
Speaker:monopoly money.
Speaker:You know, monopoly money.
Speaker:It's it's sort of this
Speaker:fake money you don't really
Speaker:understand.
Speaker:It doesn't have like a lot of value.
Speaker:It has value, but you don't really
Speaker:understand what the value is.
Speaker:And so what's important when I'm
Speaker:working with someone who's come into
Speaker:a lot of money, who hasn't
Speaker:sort of been exposed to that amount
Speaker:of wealth before.
Speaker:Rather than saying you have
Speaker:$75 million,
Speaker:that's meaningless.
Speaker:What the hell does that mean?
Speaker:What I do is I say, Well, okay,
Speaker:what how much income
Speaker:is that going to produce
Speaker:per year?
Speaker:And maybe the income, whatever the
Speaker:amount is, let's say it's $500,000
Speaker:a year. That's an amount that they
Speaker:could safely withdraw withdrawal
Speaker:from their portfolio without
Speaker:running out of money.
Speaker:So now they they understand.
Speaker:Okay, well, 500,000
Speaker:is a lot of money.
Speaker:But they can get their head around
Speaker:it versus
Speaker:300 million.
Speaker:And then 150 million and then 75
Speaker:million, 500,000,
Speaker:they can kind of appreciate
Speaker:and and understand
Speaker:versus what 75 million is.
Speaker:So it's really important to sort
Speaker:of shape how
Speaker:much money they have in terms of the
Speaker:income that they can withdraw.
Speaker:And I found that that that is
Speaker:a super effective strategy
Speaker:of getting people to sort of
Speaker:appreciate what they can spend money
Speaker:on and what they can't.
Speaker:Does that make sense?
Speaker:Yeah.
Speaker:Yeah, it sure does.
Speaker:And just to back
Speaker:up just a little bit.
Speaker:When people are
Speaker:asking for money and you do have
Speaker:a statement that you
Speaker:give to people, that doesn't mean
Speaker:that you can't help people.
Speaker:I helped a lot of people
Speaker:back in the day and,
Speaker:you know, of course, love people,
Speaker:but it was a very painful thing
Speaker:to have to deal with people
Speaker:coming out of the woodwork and
Speaker:people asking for money,
Speaker:especially people that I loved and
Speaker:cared about, family and friends.
Speaker:And, of course, I helped a lot of
Speaker:people, but I wanted to be
Speaker:financially responsible so I
Speaker:couldn't help everyone to the extent
Speaker:that I wanted to, because you
Speaker:want to be financially responsible.
Speaker:But in the cases that you do
Speaker:want to help people and you can
Speaker:help people and the financial
Speaker:advisor says,
Speaker:look, this is okay.
Speaker:This is within your budget and you
Speaker:work it out.
Speaker:How is that done?
Speaker:What is the tax write up for how
Speaker:much you can give per year and
Speaker:how does that work?
Speaker:Do you know?
Speaker:Yeah. Great question.
Speaker:And I'm so glad that you brought
Speaker:this up because
Speaker:when you have a sudden wealth event,
Speaker:obviously you're excited.
Speaker:You want to improve your life.
Speaker:But part of improving your life is
Speaker:helping those around you.
Speaker:You know, your your friends and
Speaker:your family, your loved ones
Speaker:like to be able to share
Speaker:in that in a meaningful
Speaker:way is
Speaker:is just a wonderful thing to be able
Speaker:to do.
Speaker:And it can also go very,
Speaker:very.
Speaker:Badly.
Speaker:And I say that because
Speaker:I've had situations where clients
Speaker:who wanted to help had a
Speaker:really, really big heart.
Speaker:And I feel
Speaker:like other people sort of took
Speaker:advantage of their generosity
Speaker:and kept asking for things
Speaker:different amounts for different
Speaker:things, different people.
Speaker:And if you want to help,
Speaker:that's wonderful.
Speaker:But you don't want to help
Speaker:so much that it hurts.
Speaker:And there is a fine line
Speaker:between helping and hurting.
Speaker:And when I say hurting.
Speaker:That not only applies to you,
Speaker:the one giving the money and hurting
Speaker:your finances like giving too much,
Speaker:but it can also hurt
Speaker:the person that you're giving
Speaker:the money to.
Speaker:I'm seeing many situations
Speaker:where you're doing it
Speaker:because you want to help, but they
Speaker:they get the money and it just.
Speaker:Ultimately, maybe that helps them,
Speaker:you know, initially, but ultimately
Speaker:it actually hurt them more
Speaker:because maybe they didn't get that
Speaker:job. Maybe you help them with
Speaker:a with a loan so they
Speaker:could start a business that you
Speaker:didn't really believe in, but you
Speaker:were you know, they were a friend.
Speaker:You wanted to help them.
Speaker:So they quit their job and they
Speaker:started this business that went
Speaker:bankrupt. Now they don't have a job
Speaker:and now they're maybe they're in
Speaker:debt because they took some loan,
Speaker:the other loans out for banks to
Speaker:start this business.
Speaker:So you want to be very.
Speaker:Very particular about
Speaker:not only who you're helping, but how
Speaker:you are helping them. And in fact.
Speaker:One of the principles is how
Speaker:to help in the right way.
Speaker:And there's no really easy answer to
Speaker:that.
Speaker:But firstly, make sure
Speaker:that you are not hurting yourself
Speaker:by giving too much money
Speaker:away. So in that example of someone
Speaker:who could safely
Speaker:withdraw $500,000
Speaker:a year and could live on that for
Speaker:the rest of their lives, if
Speaker:all of a sudden they're wanting
Speaker:to give a million, 2
Speaker:million, they want to buy someone a
Speaker:house for 3.5 million.
Speaker:That's going to have an effect
Speaker:on their financial security.
Speaker:And so working with an adviser
Speaker:to show them in black
Speaker:and white, like we run these Monte
Speaker:Carlo simulations where it's very
Speaker:easy to
Speaker:have their have their whole plan in
Speaker:there, and then to say, if we
Speaker:did X, what would happen
Speaker:to my financial security if I bought
Speaker:all of my friends $1 million house?
Speaker:What's going to happen to my
Speaker:financial security?
Speaker:Can I afford it?
Speaker:Sometimes the answer is, you know
Speaker:what? You can you can absolutely
Speaker:do that. And it's not going to
Speaker:affect your finances.
Speaker:And so if you want to do that,
Speaker:here's how to do it.
Speaker:Or oftentimes we'll run it and say,
Speaker:here is the effect of what you're
Speaker:what that decision is going to be.
Speaker:And often they'll look at that and
Speaker:go, well, no, that doesn't make any
Speaker:sense. I'm like that.
Speaker:That's going to hurt me.
Speaker:So then they decide maybe not to do
Speaker:it or to do it that much, you know,
Speaker:less amount or something like that.
Speaker:So that's the first step, is making
Speaker:sure you're not overextending
Speaker:yourself because you have
Speaker:a big heart.
Speaker:The second thing is, like we just
Speaker:talked about is making sure that
Speaker:however you're helping is not
Speaker:going to set them up for failure,
Speaker:is not going to hurt them in the
Speaker:long run.
Speaker:And work with your advisor, work
Speaker:with your team, really analyze.
Speaker:Is this going to help them
Speaker:not just today, but tomorrow
Speaker:and in the long term?
Speaker:And in terms of the
Speaker:tax strategy.
Speaker:It's pretty limited on how much
Speaker:money you can give.
Speaker:Each year to a person without any
Speaker:sort of gift tax consequence.
Speaker:It's about $17,000
Speaker:a year per person.
Speaker:If you come into sudden wealth,
Speaker:usually those amounts are much more
Speaker:than $17,000
Speaker:as a gift.
Speaker:And so you have to work with your
Speaker:especially your CPA,
Speaker:to figure out the best strategy to
Speaker:do it. Maybe you do it over time.
Speaker:Maybe it's in increments every
Speaker:single year.
Speaker:If you're married, you and your
Speaker:spouse can both give that amount to
Speaker:the same person.
Speaker:There are situations where I've
Speaker:recommended this with
Speaker:parents who came into sudden wealth
Speaker:and they're usually
Speaker:their sons for whatever reason that
Speaker:have had issues.
Speaker:They're not working very much.
Speaker:Maybe some substance abuse,
Speaker:things like that.
Speaker:They want to help them, of course,
Speaker:but they don't want to just give
Speaker:them money.
Speaker:And so you can buy an annuity
Speaker:so the parents would buy an annuity.
Speaker:Through an insurance company.
Speaker:They own the annuity, but the
Speaker:annuity is paid out every
Speaker:month and in monthly installments
Speaker:they get in. The son would get the
Speaker:income.
Speaker:And that way the sun doesn't have
Speaker:access to all of the money at once
Speaker:where they could maybe spend
Speaker:it on things that they shouldn't.
Speaker:But they know that with that money
Speaker:they could pay their, you know,
Speaker:their rent, they could buy some
Speaker:food, things like that.
Speaker:It's a limited amount and
Speaker:it lasts for the sun's lifetime.
Speaker:And so there are certain ways to
Speaker:help that are maybe
Speaker:more beneficial in certain
Speaker:circumstances than
Speaker:just writing a check.
Speaker:Yeah, that makes complete sense.
Speaker:We were here with Robert
Speaker:Pagliarini.
Speaker:Nice.
Speaker:We enjoy.
Speaker:Yes.
Speaker:And I feel like we have questions.
Speaker:I have questions that could go on
Speaker:for hours, but we are running kind
Speaker:of short on time.
Speaker:Hopefully we can have you back
Speaker:another time.
Speaker:But for people that are watching
Speaker:or listening today, where can they
Speaker:find more about you?
Speaker:Yeah, so you can look at the
Speaker:the book. The books website is
Speaker:sudden wealth solution.com
Speaker:and I'm about a year and a half ago
Speaker:I. I started an Instagram
Speaker:account you had two years
Speaker:ago. I didn't know what Instagram
Speaker:was. And so now I'm on
Speaker:Instagram and I actually kind of
Speaker:like it because we created this
Speaker:little community of, of
Speaker:sort of retirees and some sudden,
Speaker:well, folks about how to
Speaker:create and live their their
Speaker:best life post work
Speaker:and you know, sudden
Speaker:wealth.
Speaker:If it's large enough.
Speaker:It's kind of like an accelerated
Speaker:retirement plan because now you
Speaker:don't have to work anymore.
Speaker:And the difference is when
Speaker:most people retire at 60,
Speaker:65, 70
Speaker:with sudden wealth, you
Speaker:know, you could retire at 25,
Speaker:you can retire tired at 30.
Speaker:And so you have the rest of your
Speaker:life to try to to live
Speaker:and try to figure out what's going
Speaker:to give you purpose, what's going to
Speaker:give you meaning.
Speaker:And that can be hard when you're 25
Speaker:years old and you don't need to work
Speaker:and you can sit at home all day.
Speaker:And so this the book
Speaker:is Bad Ass Retirement, and it
Speaker:applies to retirees as well as
Speaker:sudden wealth recipients about
Speaker:really how to create
Speaker:the very best life possible
Speaker:that's filled with meaning and
Speaker:purpose and adventure.
Speaker:I love it.
Speaker:And we again, we will put links
Speaker:to all of this in the show
Speaker:notes if you're listening or in the
Speaker:description of this video, if you're
Speaker:watching this on YouTube today.
Speaker:But Robert, thank you
Speaker:so much. Is there anything else
Speaker:that you wanted to say today that we
Speaker:didn't cover, that I didn't ask
Speaker:or just don't know enough to ask or
Speaker:that you just wanted to say?
Speaker:Yeah. I mean, you ask really,
Speaker:really good questions and
Speaker:I'm sad we didn't get into
Speaker:your situation.
Speaker:I really wanted to explore
Speaker:what that experience
Speaker:was like for you, how you
Speaker:dealt with it. I mean, I love the
Speaker:fact that you you created
Speaker:that line that you could
Speaker:that you could sort of parrot to
Speaker:people
Speaker:like you do a wonderful job
Speaker:interviewing, you know, experts.
Speaker:But you are an expert as well
Speaker:because you experience this.
Speaker:And so I would love to ask
Speaker:you questions.
Speaker:I mean, maybe the next time I'm on,
Speaker:we we we have a little bit more of a
Speaker:conversation where I get to did
Speaker:the deep, you know, dive in a little
Speaker:bit deeper into how you
Speaker:handle things?
Speaker:Yeah, I would love to.
Speaker:I would love to.
Speaker:There are so many topics
Speaker:and areas we could go into at this
Speaker:that are just so fascinating.
Speaker:It's much of this is my life
Speaker:experience and I really empathized
Speaker:with your book, The Sudden Wealth
Speaker:Solution, and definitely
Speaker:am eager to read about us and
Speaker:about us retirement
Speaker:as well. But you're
Speaker:a beacon of knowledge
Speaker:and wisdom and I really, really
Speaker:appreciate your time today.
Speaker:Yeah, it's been my pleasure.
Speaker:I love talking about this.
Speaker:When someone goes through an event
Speaker:like this, it can feel very,
Speaker:very lonely.
Speaker:Like you're the only one in the
Speaker:world who's ever gone through this,
Speaker:who's feeling what you're feeling.
Speaker:And again, that can be euphoria.
Speaker:It could be fear.
Speaker:It could be guilt. It could be
Speaker:whatever it is.
Speaker:Just know that there are
Speaker:a lot of other people who have
Speaker:gone through this, who've
Speaker:experienced what you've experienced
Speaker:and who have come
Speaker:out on the other side
Speaker:with better,
Speaker:fuller lives
Speaker:as a result of the money that
Speaker:they have.
Speaker:Yeah, it could be very, very
Speaker:shocking, but you
Speaker:can make it very positive depending
Speaker:on which way you go.
Speaker:Absolutely.
Speaker:Yeah, Great.
Speaker:Yeah.
Speaker:Well, thank you very much, Robert.
Speaker:I really appreciate your time today.
Speaker:Such a pleasure.
Speaker:My pleasure. Thanks, David.
Speaker:So that was my interview with Robert
Speaker:Pagliarini. Really?
Speaker:Now, what did you think of this
Speaker:interview? Let me know by leaving a
Speaker:comment under the YouTube video
Speaker:for this interview.
Speaker:We will put a link to it along with
Speaker:all the other important links in the
Speaker:show notes.
Speaker:Remember, anything and everything is
Speaker:possible.
Speaker:Play responsibly if you play
Speaker:the lottery. As always, thank you so
Speaker:much for listening today
Speaker:and thank you for your support.
