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Tips for newly minted Facebook millionaires: CNET News Video

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CNET News Video: Tips for newly minted Facebook millionaires

1:37 /

Congratulations, you're officially rich. But before you splurge on a winter getaway in Aspen or some sporty wheels, take a breath. CNET's Sumi Das speaks to a financial expert who says the best thing to do is follow three simple steps.

Speaker 1: So, your company have gone public or been acquired, now that you've added some zeros to your bank balance, what's next? Expert say newly minted millionaires should follow three simple steps. Speaker 2: Plan, diversify and take a very close look at taxes. Speaker 1: Uncle Sam is going to want his cut. Just ask Facebook co-founder Edwardo Saverin, who's getting hit for renouncing his US citizenship presumably to avoid hundreds in millions of taxes. Speaker 3: You have savings bond in two different places? speaker 1: Don't run for the border but seek a tax expert who can help with some common sense legitimate strategies. Next remember lessons learned from the first dot com boom and the recent financial down term. Speaker 2: You know, it goes back to the importance of diversification. Making sure that no matter how hopeful or depressed you are about the prospect of both Silicon Valley and investing in general, that you make sure you ride a middle ground. Speaker 1: Finally, be prepared for ambulance chasers. Your phone will buzz with calls from people wanting to manage your money. You wanna take a financial adviser over a broker. Speaker 2: If you're a broker, you're a salesperson. You are paid to sell whatever that firm wants you to sell. You push products. If you are an adviser, you have a legal duty of (adetiary?) obligation to your client to act in their best interest not in your own. Speaker 1: You should bet anyone you're considering hiring early. In San Francisco, I'm (Simi Das?) CNET.com for CBS News.

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