F. Scott Fitzgerald to Ernest Hemingway “The wealthy are different than you and I.”
Ernest Hemingway to F. Scott Fitzgerald “Yes, Frank. They have more money.”
WHO ARE THE SUDDENLY WEALTHY?
We are a wealthy country. As many researchers have documented, wealth in the United States is extraordinarily dynamic. The old wealth of chemicals, steel, and banking is replaced by new wealth from software, communications, and technology.
In the next twenty years, over $15 trillion of wealth will pass through inheritance from the Greatest Generation (those who endured the Depression, and fought the Second World War) to the Baby Boomers.
Incentive compensation in the form of stock options is a key factor in recruiting, retaining, and motivating corporate employees, from top executives to brilliant young engineers. When leading corporations are successful, these individuals may find their wealth grow into six or seven figures literally over-night, as their option grants vest or their companies go public.
The defined-contribution revolution in retirement savings has created trillions of dollars in 401(k) and 403(b) savings. Upon retirement, many are finding themselves with the option of rolling over lump-sum distributions that can range into the millions.
As the baby boomers begin to retire, roll-over accounts (based on lump-sum distributions from retirement savings plans) are actually growing quicker than 401(k) plans.
To these secular phenomena can be added lottery winners, newly qualified thoracic surgeons, NBA rookies, life insurance beneficiaries, successful entrepreneurs, and literally millions of other Americans, all confronted with the problems, challenges, and opportunities of sudden wealth.
Sudden Wealth-Avoiding the 12 Deadly Mistakes: