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What To Do With Restricted Stock Units (RSUs) And IPO Money

Sudden Wealth Management Tips for Tech-Savvy Individuals

When your stock goes IPO or you find yourself in possession of a sudden windfall, managing it wisely becomes paramount. Tech-savvy individuals, like you, understand that strategic financial planning is crucial in a fast-paced digital world. Avoid the pitfalls of sudden wealth syndrome by preparing, strategizing, and seeking professional guidance.

Sudden Wealth Syndrome: The Reality

Did you know that 80% of retired NFL players face financial troubles within their first three years out of the league?* This phenomenon, known as "sudden wealth syndrome," is not limited to athletes. It affects anyone who experiences a substantial influx of money, be it through an IPO, a lottery win, or another windfall. In such situations, unprepared individuals may face stress and financial challenges.

At TechGirl Financial, we believe that sudden money doesn't have to be stressful. With proper preparation and expert guidance, you can navigate these life-changing events without becoming another statistic of financial instability.

TechGirl's Unique Approach

Our approach begins with a simple yet powerful question: "What makes you happy?" We focus on lifestyle rather than material possessions, encouraging you to envision how you'd like to live your life. Whether it's starting your own business, engaging in charity work, or exploring the world, the clearer your vision, the more effectively we can put your money to work for you.

Tip #1: Shift Your Perspective

When managing your newfound wealth, it's tempting to think about what you can buy. Instead, consider how this financial freedom can liberate you from the daily grind of work. Understand that big-ticket items come with substantial maintenance costs, and it's crucial to plan your expenses around the income your wealth can generate, rather than depleting the principal amount.

Tip #2: Prioritize Income over Spending Principal

Smart money management involves planning your expenses based on the income your wealth can generate, without eroding the principal amount. Foundations and pensions follow this strategy to ensure long-term financial stability.

Tip #3: Tackle Taxes Wisely

Managing taxes can be challenging. Seek the expertise of an experienced tax professional who understands corporate stock rules and regulations. Estimate your taxes and set aside the necessary funds to meet your obligations, ensuring a smooth financial journey.

Tip #4: Achieve Financial Happiness

What will you do when your money starts working for you? Determine whether you have the time, expertise, or inclination to manage your wealth effectively. If not, seek professional guidance to develop income streams that will last a lifetime. Avoid the stress of losing money by implementing a well-thought-out plan that aligns with your financial goals and values.

At TechGirl Financial, we provide the resources and expertise to help you plan your ideal lifestyle and budget. We put your money to work, offer ongoing management, and keep you on track, allowing you to live within your means while enjoying the benefits of financial independence.

Ready to unlock your financial potential? Contact us today to start your journey towards financial happiness.  To get started click the button below to meet with our team. 

*Source: Forbes, Feb 9, 2015 - "5 Reasons Why 80% Of Retired NFL Players Go Broke"

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