Nobody warns you about the week the money arrives.
When my company sold, we had more money than we had ever seen, all at once. We had good advice, careful plans, and smart friends. We still made a lot of mistakes. And when I started talking to other people who had come into sudden wealth, I kept hearing the same stories from different people in different cities.
So I went looking for them. I interviewed people who had made millions and asked what they got wrong. Their names are changed, but the stories are real. I’ve turned them into How to Blow a Fortune, 25 lessons, one page each. Start with the introduction.
Five of the wildest sudden wealth mistakes
Hedge What You Can’t Sell
Ron sold his company for $45 million in the acquirer’s stock. Less than a year later, the acquirer imploded and the stock went to zero. A hedge that would have kept at least $10 million was on the table, and he passed on it.
Don’t Let the Tail Wag the Dog
Rachel and her husband invested $100,000 in an oil and gas fund pitched by their trusted financial advisor. Four months later, they learned it was a Ponzi scheme.
Hire Someone Who Says No
Peter sold his company for $169 million at 27 and hired a friend as his financial advisor. The friend never pushed back. If Peter asked for a $2 million wire, it just showed up, and he says that decision probably cost him $20 million over ten years.
Get a Nice Rental
Tom bought a $7.5 million apartment in New York right after his sale. Covid hit before he moved in, and he has never spent a night there. It still costs $20,000 to $25,000 a month to maintain.
All In Twice
Greg put nearly 100% of his net worth into a new business that ran on cheap borrowing. When Lehman closed in 2008, its revenue went to zero.
More money advice for sudden wealth
The rest of the book covers things like:
Why a purchase that feels small each month can be the biggest mistake of the year
The generous impulse that can hurt the people you most want to help
The phrase that should make you walk away from any deal: “It can’t fail”
Fifteen minutes of due diligence and what they might have prevented
A first-year playbook for the twelve months after the money lands
If you have money coming, or you already have it and wish someone had told you this sooner, start with the first lesson. It takes about five minutes.