Sudden Wealth Financial Advisors
Sudden Wealth Financial Advisor
Darrow Wealth Management specializes in helping individuals expecting a sudden wealth event or financial windfall. Sudden wealth from stock options following an IPO or acquisition, sale of a business, an inheritance, trust fund distribution, or other major wealth event can happen overnight. We’ll work to help you develop a strategy to make the most of the windfall and navigate other upcoming major financial decisions.
Types of Sudden Wealth and Liquidity Events
Stock Options
Large Inheritance
An unexpected windfall can change your life. If you’re expecting a lump sum from an inheritance, sale of a business, IPO or acquisition, work with a sudden wealth advisor who specializes in helping investors like you.
You can only spend a dollar once, so it’s important to have the support of a fiduciary financial advisor who will prioritize your goals and provide honest advice about what is – and isn’t – financially feasible.
Nationally Recognized Wealth Advisor in Stock Compensation
Selection of media appearances by Kristin McKenna CFP®, President of Darrow Wealth Management and a nationally recognized specialist in employee stock options and equity compensation.
Publications above reflect media organizations that have quoted and/or published articles authored by Kristin McKenna and should not be misconstrued as a current or past endorsement of Kristin McKenna, Darrow Wealth Management, or any of its advisors. Please refer to the media page for more information and links to published works.
Financial Advisor for Major Financial Windfalls (Video)
Financial Planning and Investing After a Liquidity Event or Sudden Windfall
A major liquidity event can transform your financial life. To maximize the opportunity, it’s critical to get the right team of advisors in place before making an irreversible decision. Through an ongoing advisory relationship, we aim to help ensure you are well-positioned to meet your short and long-term goals.
Ways our sudden wealth financial advisors can work to help you:
Financial planning. Cash flow projections, retirement planning, and development of a comprehensive financial plan
Tax planning. Understand the tax implications of the windfall including options to reduce tax liabilities in coordination with your tax professionals
Investment advisory services. Implement an investment plan based on your risk profile and cash flow needs
Custom investing solutions for liquidity and diversification. Depending on your goals and assets, sudden wealth investors may benefit from an asset-based loan or custom investment management strategies such as the use of options
Goal funding. Discuss your financial goals in light of the sudden wealth event, including planning for generational wealth, education funding, major purchases, ongoing income needs, etc.
Estate planning and gifting. Coordinate approach with your attorney to help ensure strategy is aligned with your post-windfall financial situation and in consideration of federal and state estate tax considerations
Charitable giving. Consider various vehicles to meet charitable giving objectives alongside tax planning considerations
Coordinate with tax and legal advisors. Coordinate approach with your tax preparer and estate planning attorney
Our approach in navigating a sudden wealth event is customized based on your needs and the nature of the windfall. As you might imagine, the planning opportunities and considerations after receiving an inheritance from a parent is usually quite different from an employee with stock options during an IPO.
As a financial fiduciary and registered investment advisor, we have a legal duty to act in our clients’ best interest at all times. This is the highest act of loyalty, trust and care as established by law.
Fee-Only Wealth Management
Work with an advisor – not a stock broker. As a client, you will never have to worry that your advisor may try to sell you a financial product for their own personal gain. As a fee-only financial advisor, we do not sell securities, investment products, or receive commissions or compensation from 3rd parties.
Meet the Team of Sudden Wealth Advisors
Our team of advisors have broad and deep experience and education in the fields of investment management and financial planning. Our advisors include a CERTIFIED FINANCIAL PLANNER™ professional, CPA, and Chartered Financial Analyst® designations. Learn more about the Darrow team of financial advisors.
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Frequently Asked Questions About Sudden Wealth Management
What does a sudden wealth advisor do?
Financial windfalls can change your circumstances in an instant. We will work to help you understand the nature of your liquidity event, potential tax implications, recommendations and timely key decisions you’ll need to make, and what this newfound wealth could mean for you and your financial goals. As sudden wealth advisors, we know that a large windfall can bring excitement – and stress. So we’ll break it down and help you prioritize throughout the process, taking as much off of your plate as possible.
When should I talk to a sudden wealth advisor?
It is often helpful to speak with an advisor before the liquidity event is finalized, but the timeline will depend on the situation.
For example, when advising exiting business owners, it’s best for us to start working with a client before going to market or signing an LOI. For individuals receiving an inheritance, we can usually kick off a wealth management relationship when distributions are set to begin. Most planning opportunities exist before stock options are exercised and sold, so speak with us before an IPO, acquisition, tender offer, major exercise decision or sale.
Can you help with other types of windfalls?
Yes! Especially when it comes to cash windfalls, the process, planning considerations, and opportunities are usually very similar.
Do you coordinate with my CPA or estate planning attorney?
Yes. Coordination with the entire advisory team is often essential, particularly on the tax side. Working together helps ensure decisions around equity compensation align with your broader tax and estate plans.
Are sudden wealth financial advisory services offered on an hourly or project basis or only as part of an ongoing wealth management relationship?
Our advisory services are only offered to wealth management clients as part of an ongoing relationship, which includes asset management and comprehensive financial planning.
We are currently accepting new clients with an investment minimum of $2,000,000. Net proceeds from upcoming liquidity events can typically qualify and will be discussed on a case-by-case basis.
Please see this FAQ page for more common questions about working with us.