.The Seven Stages Of Sudden Wealth

By Douglas Wolford

The path to wealth is often a slow one, a journey that takes place one step at a time over the course of several decades. But for some people, certain events—receiving an inheritance, selling a successful business, winning the lottery—can create a rags-to-riches experience, seemingly overnight.

When that happens, the results can be both thrilling and confusing. I’ve seen many clients, colleagues, and close friends go through a period—and a process—of adjustment to sudden wealth that, unless anticipated and managed consciously, can be very jarring.

The goal of this primer is to provide a preview of the psychological transformation you, or someone you care about, may encounter when coming to terms with this newfound wealth. And so, with respect to Elizabeth Kübler-Ross, on whose famous model this primer is loosely based, I offer you what I call the Seven Stages of Sudden Wealth.

.5 Money Lessons Grandparents Can Teach Their Grandkids

Starting as young as age 3, your grandchildren could reap a lifetime of rewards from these five basic financial skills.

If you are like many grandparents, you like your kids, sometimes, but you LOVE your grandkids. Being a grandparent is a special honor. You have a unique ability to shape your grandkids well beyond just spoiling them with sweets and sending them home.

Given how important financial skills are to succeeding at life, it’s surprising schools don’t teach our children more about money. As a grandparent, however, you can teach your grandkids important financial lessons — and you should! These lessons can leave a positive mark on your grandkids for decades to come.

.5 Ways NOT to Gift to Children … and 5 Better Ideas

By DANIEL A. TIMINS, ESQ., CFP® | Law Offices of Daniel Timins

Parents who mean well sometimes put their children in a position to blow it.

Giving to children can be a weakness. We often want to help children actualize their financial goals and give them an easier life than we might have had. However, gifting to children can also be a disaster:

We all realize that many children are irresponsible with money, do not have enough life experiences yet to protect it, and are targets of those interested in getting a piece of the money you gave them.

Here are five common and less-than-ideal gifting scenarios, and suggestions you can use to protect your assets:

.3 Ways to Instill Enduring Financial Values in Your Children

Leading by example is always a good idea, and the earlier you start, the better. These three lessons can get the whole family going in the right direction.

Passing down values related to family wealth is one of the most crucial, yet challenging, tasks for parents today. Children’s experiences with money during their formative years can shape how they save, spend and give for the rest of their lives.

What’s more, taking the right approach can ensure a family’s wealth is preserved through future generations. One recent study found that 70% of wealthy families lose control of their assets by the second generation, and 90% by the third. That’s a frightening prospect, especially when previous generations have taken so many steps to grow and maintain their wealth.

How I Saved a Small Fortune and Taught My Kids to Be Independent

Smart Insights From Professional Advisers

My money-saving parenting strategy boils down to saying one magic word and saying it often: NO

It’s much easier these days to spend money on material things, especially if you can afford to do so. What’s worse is the peer pressure to keep up with the Joneses or their kids. Like many of you, when my wife and I grew up, a family dinner at Ponderosa was a BIG family night out.

I fondly remember the all-you-eat buffet and especially loved the chocolate pudding. I grew up in Arlington Heights, Ill., in a middle-class family of four. We did fine financially compared to our neighbors (the houses were all so much smaller back then).

I have succumbed to the peer pressure of keeping up with the Joneses more than I like to admit. If only I still lived in the nice three-bedroom ranch we first bought in Glen Ellyn for $220,000 I would have boatloads more money today! My mortgage would have been paid off years ago. I would already be financially independent had we not moved to a bigger, more expensive home. I probably would have been able to save close to 50% of my income today had we not moved.