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The first thing the 1,000 or so new post-IPO Faceb

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Advice to new Facebook millionaires: take a breath

by Sibin C Sunny on March 21, 2012

The first thing the 1,000 or so new post-IPO Facebook millionaire employees might need: a reality check.
Financial advisers who cater to entrepreneurs and others who find themselves trading Chinese takeout for caviar say new millionaires rarely think rationally early on.
"It will probably take three to five years to absorb the full impact," said Susan Bradley, founder of the Sudden Money Institute, a Florida-based organization that coaches the newly wealthy and their advisers.
Advice to new Facebook millionaires: take a breath
Advisers say new millionaires are prone to mistakes, like making extravagant purchases or risky deals with friends. Others get so overwhelmed they leave the fortune sitting in the company stock. And some - troubled by the idea of letting even a trusted adviser take the reins - make outlandish investment decisions, often against the advice of a professional.
On Wednesday, Facebook filed regulatory documents for a $5 billion public offering. Many employees at Facebook - at least among those working at the company a few years or more - are expected to be worth between $4 million and $20 million on paper when the company goes public. When the lock up period to sell shares ends six months post-IPO, that paper wealth turns liquid.
Many financial advisers have one piece of advice for soon-to-be-rich employees of Facebook: sit tight.
Financial advisers say it's best to take the lock up period to make a list of goals, decide how aggressively to spend and plan out with an adviser how to invest without putting those goals at risk. Of course, there is room for some fun with the money, advisers say. But don't
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