How to Handle Sudden Wealth

[beauanderos]

We're stackers here, for the most part. We realize that the dollar is in it's death throes, whether that be immediate, or a demise that is delayed. We've learned to read the "handwriting on the wall,"
and thus we apportion a measure of our income to amass silver and gold and some, to a lesser extent, platinum and/or palladium, because we understand that they are each stores of value. There are
some who envision the coming "greatest transfer of wealth in history," as faith in fiat is destroyed and the masses return to believing (and acting upon) the real worth of precious metals, driving their
price to levels few can imagine now.... gold surpassing $60,000 an ounce, silver $1000 to $1500.

Many fantasize as to what sudden shifts of fortune could afford them, without perhaps acknowledging that such a milieu of repriced metals could arrive with its own set of curses (be careful what
you wish for?) Many have offered their opinion in other threads that while precious metals could climb nominally in depreciated dollar value, the cost of goods/living expenses would keep pace as well,
leaving one no better off than before. Granted, under this scenario, you would be able to survive, perhaps flourish, but mostly you would be merely maintaining your purchasing power... as opposed to
the 99 percent who foolishly maintained their faith in fiat and paid the price for their folly.

The point of this post is... what if? What if precious metals run up to unheard of heights without hyperinflation, perhaps due to a dollar devaluation or a new currency backed by gold?
How would your life be affected if your net worth suddenly increased one hundred times its present value? One thousand times? Due to normalcy bias we think this can't happen to us, thus we avoid even
considering the consequences were "our dreams" to come true. How would sudden wealth affect you? Those in your circle of influence? Can you/should you prepare yourself in advance for the psychological
shock that such a shift would represent?

When things change, they can change suddenly, perhaps in unalterable fashions one cannot even imagine. The latest snowflakes of a DOW 1300 point loss this last week, and 23 other global stock markets
currently in rapid decline, could potentially be the final impetus to a world-wide avalanche of equity markets collapse, concomitant with a massive shift of "hot money" seeking safe haven. With derivatives
as a catalyst, you'd be foolish to dismiss the possibility that "anything could happen."

So... now you're rich... beyond what you could ever imagine. What happens next???

http://www.cnbc.com/2013/11/24/ealth.html

http://www.sfgate.com/business/article/Overcoming-the-New-Money-Blues-Troubled-new-2777864.php
"The bottom line, experts say, is that very few people are psychologically and emotionally prepared for the life-altering effects of large amounts of money."

http://www.mmcinstitute.com/about-2/sudden-wealth-syndrome/

[Copper Catcher]

What happens next???

To answer this question properly I think is all a matter of perspective on how you view money. Some view obtaining money as a lifetime goal where there is no end. Few have ever answered the question: How much is enough? One of the richest Americans in history, John D. Rockefeller who was the founder of the Standard Oil Company and, later, a philanthropist whose wealth bankrolled the Rockefeller Foundation was asked once, "How much money is enough money?" He replied, "Just a little bit more." His net worth was estimated at $340 billion! He as born in 1839 and died in 1937 at the age 97.

Money is a tool. How a person handles money, no matter how much or little that amount might be, determines how well of a life the person leads.

We all know instances of people who never had much money suddenly get a bunch and seem to go crazy spending every penny. Within a few years they are back to where they once were or worse! Likewise you see lots of examples of famous people making millions go bankrupt or die of drug overdoses.

Money does not make anyone invincible nor is it the key to happiness. Sure money does or can make life easier! But a more important question to ask might be: what makes you happy and satisfied now? What gives your life purpose and meaning and what role does money play in this?

To help focus your attention take a moment and ponder these questions: If you had only one month to live what would you do? Next, let's say you only had one week to live. What would you focus your time on doing? Now the hardest one: You just have 48 hours to live what would you spend your time doing?

Money and wealth come and go and does not give anyone the opportunity to add one more second to their life. How you live your days, is how you live your life! After all, we all are creatures of habit.

[justoneguy]

"Good things take time, but great things happen all at once".
Rat Race the movie

[wheeler_dealer]

Scary thought. Considering the surrounding environment one would be wise not revealing such fortunes should this occur. While sudden wealth would make life easier it won't ease the struggle of those less fortunate or prudent around us. It may increase one risk of personal safety to demonstrate any newfound wealth.
That said, were such blessing to occur for me I feel that a tempered approach to helping ease the misfortune of others may be the most rewarding benefits of newfound wealth.

[Recyclersteve]

Great topic, even if we are fantasizing!

I'd seriously consider retiring- not sure whether I would or not.

I'd also enhance my stash of survival gear, food, etc. Also, I'd have great hiding places built all over the place, but would try to be discreet about it.

I'd think about what I could trade some of my stash for. If silver went up 100x and gold only doubled, I'd consider trading some silver for gold. I'd need to authenticate it first. Even if it went up tenfold real quickly, that wouldn't make me feel rich or like I could retire. Now 100'fold... Hmmmm...

I would not be hosting a "look what metals did for me" party...

It is really strange to think of taking a bag of, say, silver dimes to sell and they are so expensive that the other party wants to authenticate each one individually. Then they pay you with whatever currency is in existence at the time and you have to run their bills through a counterfeit detector. That would make for a very strange day. Oh yeah, you'd have to have a full security team around...

And if there was any way I could do so, I'd do more for my favorite charities.

[beauanderos]

The idea of sudden wealth might seem preposterous, but on the surface... so do many things we already prep for.

[Mossy]

The idea of sudden wealth might seem preposterous, but on the surface... so do many things we already prep for.

I think that, as a general rule, humans, as a species, thrive under poverty conditions and withers under bounty.

So, yeah, sudden wealth is something to be cautious of. (Not that I'd complain, mind you.)

[franklin]

I would have a lot of ammo...but I wouldn't tell anyone on the internet that I was buying it.

[slickeast]

I would have a lot of ammo...but I wouldn't tell anyone on the internet that I was buying it.

I think you just did.

So now anyone who sees this knows you will be stocking up on ammo

[franklin]

Why didn't I think of that?

[slickeast]

I would move to the country. Or somewhere where I can have some land. I would not buy any exotic car or dress in fancy clothes. I am not much of a materialistic type person. But I would probably buy a nice truck and a few water toys.

I would also help my brother and sister out by paying off their mortgage and cars.

I would want to be the same person I am now, but with more commas in my net worth

[fasteddy]

I would want to be the same person I am now, but with more commas in my net worth

So we would still have to buy your meals at the RC GTG's?

[slickeast]

I would want to be the same person I am now, but with more commas in my net worth

So we would still have to buy your meals at the RC GTG's?

Yup. That way I can keep my net worth high. You stay wealthy by spending someone else's money

[InfleXion]

I don't need to be rich. I'm happy with the 9 to 5 and my little slice. If I did come into sudden wealth I would probably first move into a larger and more secure home, upgrade my vehicle, donate a bunch to charity as well as start my own charity to address the problems I see in my community, make some strategic investments, and then pursue a career in the music industry. I figure if people like a song, then they have to hear the words (although I get that hearing isn't necessarily listening), and I think it would be a great tool to educate the masses about real money and other important matters. Tupac did the same thing to his detriment, but I think focusing on real money is enough without calling anybody out. Remove their method of control, the money printing machine, and there's not as much need to focus on who they are.

[beauanderos]

I don't need to be rich. I'm happy with the 9 to 5 and my little slice. If I did come into sudden wealth I would probably first move into a larger and more secure home, upgrade my vehicle, donate a bunch to charity as well as start my own charity to address the problems I see in my community, make some strategic investments, and then pursue a career in the music industry. I figure if people like a song, then they have to hear the words (although I get that hearing isn't necessarily listening), and I think it would be a great tool to educate the masses about real money and other important matters. Tupac did the same thing to his detriment, but I think focusing on real money is enough without calling anybody out. Remove their method of control, the money printing machine, and there's not as much need to focus on who they are.

The name eludes me right now... but there is a female Canadian folksinger whose lyrics are all various themes regarding Austrian economics.

[TXBullion]

Hopefully nothing would change.Hopefully throw more money around towards friends / family /strangers. Preferably anonymously to avoid that whole song and dance.... Maybe hire a couple of talented people to assist in various back end office duties for work but hopefully with natural growth that comes without sudden wealth though i would feel more inclined to get on it

[slickeast]

Maybe hire a couple of talented people to assist in various back end office duties

Jack, this is an interesting way to describe call girls

[beauanderos]

Maybe hire a couple of talented people to assist in various back end office duties

Jack, this is an interesting way to describe call girls

interview process...

"Uhmmm," the heavily front-loaded blonde asks... "what does the job entail?"

Jack smiles broadly... "You'll be working under me."

[TXBullion]

You guys are terrible.....

no thats not what I meant

[fasteddy]

uh huh...right!

nuthin wrong with dressin up the office's back end....

[Rosco]

Jack we are Stackers So you Know how we think

Thanks for letting US catch YOU

[fansubs_ca]

hire a couple of talented people

You know every time I see the word 'talent' this comes to mind:

http://www.moonie.ca/glenap/goofy/talent.html

Since I worte that page (in 1997) I've since acquired a subtitled version
of that episode.

So your word choice only further re-inforces how the others interpreted
your statement.

Of course I'm probably the only 'moonie' on this board...