Omnia Discusses “Sudden Wealth Syndrome” in Financial Advisor magazine
In an article featured in Financial Advisor magazine, Chief Executive Officer of Omnia Family Wealth Steven Wagner answers the question “Is there a downside to sudden wealth?”
The short answer is yes, and it can lead to what Omnia calls “Sudden Wealth Syndrome” – an occurrence that can be catastrophic to family wealth when an unprepared heir suddenly inherits a large sum of money and makes poor decisions with it. Wagner explains that because they are unprepared, the family wealth is lost after it is transferred from one generation to the next.
“Sudden Wealth Syndrome is preventable,” says Wagner. “It all boils down to talking to your heirs about the legacy you want to leave.”
To prevent Sudden Wealth Syndrome, Omnia encourages wealthy families to engage in structured family meetings where second- and third-generation heirs can ask questions and learn about the family’s guiding values, long-term goals can be set, and a mission for the family’s legacy can be established.
Financial educational is another way to prevent Sudden Wealth Syndrome, whether starting with an allowance for younger children or through an investment educational course for older heirs.
The full Financial Advisor magazine article is available here.