so you just got rich maybe you buy gamestop at five dollars or bitcoin at a thousand
maybe did it the good old-fashioned way and won the lottery but by one means or another you have
found yourself with millions of dollars looking back at you when you open up your bank account
congratulations you've won capitalism now what you might have thought that making the money was the
hard part but in many ways holding on to it can be even harder friends you haven't heard from in
years will suddenly spring back into your life strangers will send you threatening letters and
even family members will have a sob story about why they suddenly need money and ironically enough
multi-million dollar windfalls from inheritances gambling or gambling and denial investing actually
increases the likelihood of being declared bankrupt by over a thousand percent so hang
on to your lucky windfall and stick around to learn how money works and if we end up securing
your fortunes for many generations to come make sure to give us a like and subscribe to understand
what to do with your newfound fortune you have to start off by understanding what not to do
believe it or not coming into life-changing amounts of money in a short period of time
can inflict upon people what psychologists call sudden wealth syndrome and while that might sound
like the best mental health problem to have it is still a serious problem according to the american
psychologist dr stephen goldbart the symptoms of this affliction include anxiety isolation
and paranoia brought about by the perceived guilt of receiving money that wasn't earned it's kind
of like the imposter syndrome turned up to 11. now this study was specifically conducted on
lottery winners but the same effects can be seen on most individuals that come into wealth quickly
whether they earned it or not it's easy to see why a lottery winner might feel a bit uncomfortable
about their newfound fortune but at the other end of the spectrum successful entrepreneurs that sell
off their business can often fall into the same mental trap and suffer the same consequences
this is where the three major threats to your wealth come into play they are in order from most
dangerous to least dangerous gambling getting sued and conspicuous consumption gambling is ironically
the biggest threat to overnight fortunes this might sound dumb to onlookers after all you just
made a crazy amount of money why are you trying to make more in such a silly way but this strange
pastime of overnight millionaires is partially because of selection bias just think the types of
people who make tens of millions of dollars within a short period of time by their nature tend to
be risk takers these risks could be anything like buying an irresponsible amount of lottery tickets
loading up your entire net worth into a failing company or simply choosing to start a business
in an up-and-coming field rather than becoming a good little employee with a stable salary and
health insurance the one problem with gambling here though is that it's limitlessly scalable
you might actually be surprised how hard it is to spend the quantities of money we're
talking about here just think if you had 100 million dollars and only 24 hours to spend it
what would you do buying houses planes cars and mega yachts actually takes a fair bit of work
there's a lengthy transaction process involved in all of these plus they tend to actually maintain
their value if you spend your 100 million dollars on a mansion you're not broke you've just shifted
your assets from cash to real estate however take that 100 million dollars to vegas and play hard
over a weekend and you will lose it the highest limit blackjack table open to the public in the
city is that caesar's with a cap of 500 000 per hand assuming you play perfect basic strategy over
a day and you have a dealer that offers 50 hands an hour you would expect to lose 1 million dollars
every 60 minutes now of course you might win but you also might lose a lot more than this
perfect little statistical assumption as well what's more is that if you are playing a normal
game and betting 500 000 a hand i bet you that just one click of the like button you would be
offered a private table where you could bet just as much as your little heart desired so yeah
gambling is a big no-no you have made your money with good fortune don't push your luck the next
big no-no is getting sued unfortunately if you become a high-profile overnight millionaire
you've become a high-profile target for litigious individuals this can range anywhere from
ex-business partners to ex-wives now you do have one advantage here which is that you can of course
afford good lawyers but unfortunately they might end up doing more harm than good at the two and a
half thousand dollars an hour that top law firms charge you might end up paying out more in legal
fees than you do in settlements finally there is over consumption now you might have thought this
was the biggest trap people fall into after all there are a lot of expensive things out there
but as we alluded to earlier it's actually really hard to spend money at this scale
a german billionaire once lamented that money gravitates to those with money if he bought a
limited edition ferrari it wouldn't depreciate in value like most cars it would actually demand
a premium year on year amongst collectors he purchased multiple holiday homes and they all
appreciated in value his jets got written off as business expenses and his super yacht ended up
turning up profit running charter gas while he was not on board oh and by the way you can actually
basically airbnb yachts like this one off charter brokerages this particular example will set you
back about five hundred thousand dollars per week which does go to show you can still consume your
way to being broke though you really need to put a lot of effort into it you can't buy things you
need to buy experiences that don't retain any value after they're experienced well you know
apart from a fulfilled life and all so yeah avoid these three traps and your wealth should serve you
for generations to come but maybe that is easier said than done and now that we truly understand
what not to do it's finally time to actually lay out a game plan for unexpected millions which is
totally for entertainment purposes only so don't sue me mystery internet millionaire anyway step
number one don't [ __ ] open your mouth and tell any mother or anything about anything
alright in all seriousness though keep everything as low profile as possible at least until such a
time as you have finished everything else on this list if you're a lottery winner stay anonymous if
your lottery doesn't allow for anonymous winners get a lawyer to pick it up on your behalf if they
don't even allow that do what the still mysterious a campbell did in mask up to collect your prize
somewhat easier to pull off these days so you're in luck if you have made your money
through a more conventional means like gambling on robin hood rather than on your state lottery
then try to avoid bragging about massive gains to your friends and family bragging anonymously
on the internet is actually fine so long as you are confident nobody will take you seriously and
or trace the account back to you step one ensures that you don't invite all the nasty attention that
will draw you into these three traps step two is to get good legal assistance there are actually
law firms that specialize in things like lottery winnings and they have decades of expertise in
setting up systems to ensure that you and your money are protected legally which leads us on to
step three protect your assets set up a company in trust structures that legally separates you
from your money the reason why you hear rich people talking about trust funds so much is for
precisely this reason trusts are legal entities that can hold assets like a pile of cash let's say
or they can be more complex and hold assets like shares in a company which in turn holds a pile of
cash this is likely what the lawyers in step two will recommend this type of trust will have two
important people the trustee who decides what the trust fund does and the beneficiary which is the
person who gets paid the money from the trust fund oh and by the way these two people can be the same
person and that person can be you what this means is that if you get sued you can just say
oh well i don't have any money oh that over there you mean the trust that owns a company that has
millions of dollars sitting in it well i don't own that i just control it and benefit from it
now you might ask why would you add a company on top of this trust fund and that's a great question
trust funds are awesome but they can't hold on to cash for very long they are legally required
to disperse a large percentage of their cash every year to their beneficiaries this is to prevent the
trustees you know the people that actually make the decision in the trust from holding out on
giving the beneficiaries any money wouldn't want the trust fund babies missing out on the third
trip to aspen this winter would we the problem with this rule for you though is that it means
at the end of the year you would have to pay out a good chunk of that lovely trust fund money and
you would be right back where you started holding on to a big pile of money that could be sued right
off you whereas if you give all that money to a company that just so happens to be owned by the
trust then the company can decide if it's going to pay dividends this year and if so how much that
then gets given to the trust which then gets given to you to not gamble with congratulations you are
now getting paid like every rich person ever and you got to learn how trust funds work along the
way now step four is actually putting that money to good use money loses its value over time thanks
to inflation and if your money is not making more money then you will eventually spend it all even
if it does take a lot of time so go find some good investments nothing too crazy remember you're here
to preserve the money not double it overnight that no gambling rule applies to the stock market
as well step five is setting up a budget where you can live indefinitely off these investment returns
the conventional wisdom on this is that this budget should be anywhere between two to five
percent of your total invested assets economics explained in a video on the financial independence
movement that established these rules last year and i will leave a link to that video which
describes this investing rule in much more detail and finally step six find a new place to call home
we have covered nationless elites on this channel before and now it's your turn to become one
you need to pick and choose a country that will offer you a good quality of life without
infringing any of those nasty taxes upon you popular choices amongst so-called financially
independent nomads or global elites depending on who you ask include monaco lichenstein singapore
the bahamas and bermuda and don't worry if these nations sound a little bit cramped to you
you only need to live there for six months and one day out of the year to avoid those taxes
and then you are free to travel around the world with your money which is now safe productive and
practically limitless now i'm assuming for most of you watching that the real step one would actually
be making a million dollars and a great way to do that is starting a company look at people like
steve jobs who made billions in his lifetime after founding the most valuable company to ever exist
although his billions were not actually made from that company to learn about the company
that really made steve jobs a billionaire go and watch our video on the topic
and while you're at it please consider liking and subscribing to keep on learning how money works