I am flabbergasted by how many seemingly smart people are inept at handling newly acquired wealth or how some can create a fortune exceeding $1 billion in a few years and then blow it all up faster than they acquired it.
This goes for professional athletes, entrepreneurs, actors, rock stars and lottery winners. Even those kids of baby boomers who find themselves with a minor inheritance can find lessons to learn in here.
The key is recognizing that your new found wealth is not an ongoing revenue stream, but more typically reflects a onetime windfall.
Why is that? Because you never know what the future holds no matter how much you plan… and because most importantly it’s real hard to replicate being in the right place at the right time.