One thing that has helped combat sudden wealth syndrome is the fact that it’s easier for people to become knowledgeable about savings and investments, advisors note.
“The Internet is creating access to financial information that was formerly only available to the wealthy,” said Lynch. “Comfort around money comes from having a good understanding of the markets, economics and finance.”
Some 71 percent of Americans said they would be set for life if they received millions of dollars, while 26 percent said they wouldn’t necessarily be set for life, according to a TD Ameritrade survey of 1,006 Americans.
“Proper preparation and educating yourself ahead of receiving sudden wealth is key,” Lynch said. “And don’t rush into major decisions once you receive it.”
Midwesterners lead in fiscal responsibility, with 62 percent saying they would invest a sudden windfall compared to 52 percent in the Northeast and 57 percent across the country, according to the survey.
“In places like Omaha and St. Louis, investors are more likely to value saving and investing rather than depreciating assets, which you don’t see much of on either coast,” Lynch said. “The Midwestern mentality, culture and work ethic contribute to this conservative ideology.”