It’s the kind of story that’s ready-made for Hollywood.
Ted Williams, homeless and destitute, is “discovered” by a roving TV reporter. The reporter files a story in which Williams demonstrates his “God-given voice.” The next thing you know, Williams is famous.
I don’t know if Williams meets the technical definition of a high-net-worth individual (i.e., more than $1 million in investible assets), but his wealth has almost certainly grown exponentially in a very short period of time. And from the looks of it, that change has been hard to deal with. In fact, in an interview on the CBS Early Show back in January, Williams confessed he wanted a “nerve pill,” presumably to handle the stress. Since then, he’s had a run-in with the LAPD, which was dispatched to a restaurant to settle a shouting match between Williams and his daughter.
Over the course of my career, I’ve worked with dozens of people who have gone through similar “sudden wealth” events. Most have been entrepreneurs who have sold a long-held operating business. But I’ve also worked with several heirs, a handful of professional athletes and even a couple of lottery winners.
Everyone’s experience of wealth is unique, so it’s difficult for me to give general advice on how an individual might manage these changes. What I can do, however, is put some issues on your radar screen and make you aware of some of the changes commonly brought on by sudden wealth.
It’s easy to understand how sudden wealth can leave someone stressed and overwhelmed. In fact, I’ve seen cases where these emotions manifest themselves physically – through insomnia, loss of appetite, headaches, etc. In this respect, Williams’ comments about feeling out of control seem perfectly normal.
While the intensity of these emotions can lead to a shift in personality, I think it’s more accurate to say that wealth amplifies personality rather than changing it. I’ve seen several examples of this: a business owner noted for his charity suddenly wants to give away 99% of his wealth after he sells his business; a couple known for being private suddenly turn into recluses, obsessed with protecting their personal security.
The question “what do you want to be when you grow up” can be hard to answer. It can become even harder after wealth gives you the ability to leave your old life behind. I’ve found this can be a particularly poignant issue for business owners who can feel “lost” after selling their life’s work.
As Williams has discovered, dealing with one’s public identity can also be difficult – either living up to it or “living down” to it. I remember the experience of several executive clients during 2007-08, when many people blamed the financial crisis on corporate greed and boardroom hubris. The hostility these executives experienced was alarming and unsettling to them at the time.
Even if you believe your wealth hasn’t changed you, it can sometimes change the people around you. Friends and family members can view your windfall with envy or jealousy. Others can view you as a private bank, making requests for handouts or other financial support and becoming cold or even hostile should you refuse.
I know of several business families where succession has led to long-lasting conflict. When various branches of a family are treated differently by the founding generation, some family members can perceive the inequality as a sign of parental favouritism. That kind of injustice (either real or imagined) can often take a lifetime to overcome.