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Won the Lottery? Here’s How to Protect Your Money and Avoid Costly Mistakes!
What happens after you win the lottery? In this video, financial expert Robert Pagliarini shares essential tips on how to protect your lottery winnings and avoid the common mistakes that lead to financial ruin. Hosted by Powerball winner Timothy Schultz, this interview covers the critical steps every lottery winner needs to know—setting up safeguards, choosing the right financial advisors, and staying in control of your money. If you’re playing to win or already dreaming of that big jackpot, this is the advice you can’t afford to miss!
🌟 ROBERT PAGLIARINI'S WEBSITES & SOCIAL:
SUDDEN WEALTH SOLUTION BOOK: https://www.suddenwealthsolution.com/
BADASS RETIREMENT BOOK: https://www.badassretirement.com/
INSTAGRAM: https://www.instagram.com/badassretirement/
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Lottery Experts & Advisors Interviews: https://www.youtube.com/playlist?list=PLtW0y2ulAs_IbWPwgVUUEpIoigflp6Q_K
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➡️ SUBSCRIBE TO TIMOTHY SCHULTZ'S YOUTUBE: https://www.youtube.com/timothyschultz
🌟 TIMOTHY SCHULTZ'S WEBSITE & SOCIAL:
Website: https://www.timothy-schultz.com/
Instagram: https://www.instagram.com/officialtimothyschultz
TikTok: https://www.tiktok.com/@timothyschultz
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🎙 ABOUT THE PODCAST:
Meet your host, Timothy Schultz – a Powerball winner turned journalist! With Bullhead Entertainment, LLC, he's bringing you tales of triumph, with a focus on our mindset and the belief that anything is possible.
If you have a story that you want considered for this podcast, email us today! Email Timothy Schultz's team at Contact@Timothy-Schultz.com.
Mentioned in this episode:
Special Announcement from Timothy Schultz
This is a short announcement from Timothy Schultz about how you can watch this interview on Youtube!
Youtube: LOTTERY, DREAMS AND FORTUNE Podcast
Special Announcement from Timothy Schultz
This is a short announcement from Timothy Schultz about how you can watch this interview on Youtube!
Youtube: LOTTERY, DREAMS AND FORTUNE Podcast
Transcript
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.
