Financial advisors and professionals play a crucial role in helping individuals manage sudden wealth. When individuals come into a large sum of money through inheritance, lottery winnings, or a successful business exit, they often face complex financial decisions that require expert guidance.

One key role of financial advisors is to help clients create a comprehensive financial plan that aligns with their newfound wealth and long-term goals. This may involve creating investment portfolios, tax planning, estate planning, and risk management strategies.

For example, a financial advisor can help a lottery winner understand the implications of taking a lump-sum payment versus annual installments, and then create a plan to manage and grow the winnings responsibly.

Furthermore, financial professionals can provide education and guidance on the potential pitfalls of sudden wealth, such as overspending, attracting unwanted attention, or making uninformed investment decisions.

References:

• "The Impact of Sudden Wealth Syndrome" - WealthManagement.com
• "Managing Sudden Wealth: A Behavioral Finance Perspective" - Journal of Financial Planning
• "The Role of Financial Advisors in Windfall Management" - Investopedia