It’s amazing when you read some of the stories of how lottery winners, literally some of the luckiest people on the world since the odds are so low that you will ever win anything, least of all the mega millions jackpot, actually end up broke or claiming bankruptcy due to poor financial planning.
If you ever come into a windfall of money like the lottery, it’s important to take a moment to make the right plans for several aspects of your newfound wealth. For one thing, find yourself a great tax accountant. They will help you muddle through all the ins and outs of doing certain things with your money, and will help you keep the most that you legally are entitled to without getting choked by taxes.
Another important person to look for is a trustworthy financial planner. Financial planners can help you to actually map out a budget, plan long term for where your money is going to go, and also to help you make the wisest investments with your money according to your risk tolerance and goals.
In short, a financial planner can keep you from blowing it all and then ending up with no retirement or savings plan.
The next thing you are really going to need is an estate planner. The estate planner can help to ensure that after you are gone, your loved ones can get the most benefit out of your inheritance that they possibly can. It means that less may go to Uncle Sam in the notoriously large estate taxes, and your loved ones will get the most they possibly can within the limits of the law.
As soon as you have any idea that you are coming into a large sum of money, it’s important to take a breath and decided what to do with it first. Make sure you first pay down any sort of outstanding debts, especially revolving debt like credit cards and lines of credit.
After this, you may be able to treat yourself to some stuff, or make a few wise investments with your newfound financial planner hirees, but it’s important to never spend outrageously. It’s well known that when people become wealthy, it seems like everyone and their brother is looking for a piece of it.
People suddenly need loans, ask for large favors, and do things they never would dream of doing if you hadn’t come into wealth. Choose these gifts of generosity wisely, and make sure that you feel good about it.