But once immediate dreams are fulfilled, it's time to take a look at the big picture. Most financial planners suggest a more diversified portfolio. Diversification is important for investors. There are also plans that create a financial hedge against difficult times, such as putting aside a nest egg in case of being laid off or retirement. Some people set up trust funds for their children or start a foundation to improve the world.
Estate planning is also critical.
We're all mortally challenged. With more assets, greater insurance can help protect those funds as well. In making plans, it's important to avoid pitfalls that could either sabotage these plans or sink the funds entirely. Eddy warns the newly rich that friends and family will often come out of the woodwork looking for financial help. However, most financial advisers agree that taxes are most likely to trip up the freshly wealthy.