Does A Lottery Winner Really Need A Financial Expert?

Reply #31

Viber — Sun, 09 Jan 2011 08:35:14 GMT

No financial advisor for me.

An accountant, and a lawyer is all I would get on retainer.

I would be taking zero financial risks on a big payout. I'd be content to earn a modest 4% a year.

People looking to get a 15-20% return will probably turn over chunks of money to an advisor, but such returns are not without risks, and its all too easy to be wiped out before you know what the heck happend

Reply #30

Nacon — Wed, 05 Jan 2011 16:03:22 GMT

Reading these posts with what we would do when we win the big prize from the lottery, is a very a good exercise for the real thing, when it happens. We all dream of winning the ultimate prize but what to do when it actually happens. Then planning for this must part must be now, before that happens just like all of you (and I are doing) reading, listening and learning. All the information that you share here is very valuable we are all learning from this.

There are tons of accountants and atto... [ More ]

Reply #29

jrosina — Wed, 05 Jan 2011 02:56:48 GMT

Agreed

Reply #28

dk1421 — Wed, 05 Jan 2011 02:47:42 GMT

True, true. Always keep your eyes on everyone! I mean, look what happened to Caesar

Reply #27

Mamma28z — Tue, 04 Jan 2011 18:55:52 GMT

* BTW.... I LOVE my tax woman from H R Block. She owns two storefronts, teaches classes on tax prep, and has been doing taxes for over 20 years. She's no-nonsense, direct, and speaks her mind. I would definitely have her on my Board of Directors!*

Loved our accountant of 20 some years too- till he got caught embezzling...

Reply #26

Guru101 — Tue, 04 Jan 2011 15:54:31 GMT

All I know is, I'm gonna splurge at least $30,000,000 of the $330,000,000 I won on Tuesday.

Reply #25

dk1421 — Tue, 04 Jan 2011 14:53:02 GMT

You know what they say about 2 economists in a room - direct opposites of each other. Hence, I would hire two financial advisors, so I could hear both sides.

I would do the same with hiring two lawyers and two tax accountants - all from different companies.

This way, I've got more choices (and unfortunately, decisions, but for $330 million, I think I could take it) and can hear advice from all angles.

In the beginning, I would get them all together once a month to discuss any updates/pr... [ More ]

Reply #24

socalgal — Tue, 04 Jan 2011 03:42:01 GMT

I feel it's good to talk to several financial advisors now, even if you don't win the lottery. You don't have to hire them. Just ask questions and say you're thinking long term.

If you are lucky enough to win, then you have already experienced what it's like to talk to a financial advisor. You know how they talk, the way they sell, what their deal is. You won't be overwhelmed because you've already learned how to spot the good guys from the bad.

Also, if you do win, it's a good idea to tak... [ More ]

Reply #23

joshuacloak — Thu, 23 Dec 2010 16:05:14 GMT

their a funny southpark clip about trusting financial community

http://www.southparkstudios.com/clips/222624/the-importance-of-saving-money

as for deductions, besides deductions to none profit groups their 1 nice other

Sense your being tax'ed on gambling winnings, that same Tax year your being tax'ed on any winnings, your allowed to deduct gambling losses,

in other words, for that year ONLY, you can Blow money on gambling, and have a 100% write off onto your taxable winnings, so... [ More ]

Reply #22

savagegoose — Thu, 23 Dec 2010 14:11:53 GMT

well i cant argue with your logic. look at madoff. pillar of the wall street community.

nothing to say you cant retain control of all your money, just talk to professionals who should know more about making it work for you. of course they're going to need to be paid. anyhow its troubles i would like to have.

Reply #21

markp1950 — Thu, 23 Dec 2010 11:56:58 GMT

The financial community is riddled with FRAUD, just like the government, religious community, and the Health care frauds.

And all of them have the laws rigged in their favor.

Everything that I believed in and heard about when I grew up is a big fat lie.

They will all rob you and don't care if you live or die.

I'm not talking about the side freaks, I'm talking about the main players.

The good news is that if you win a huge lottery you can buy all the justice that you want.

You s... [ More ]

Reply #20

ttech10 — Thu, 23 Dec 2010 01:36:10 GMT

You can usually find a good accountant at reputable law firms. One of the firms I found here has a guy that not only is a CPA but he also deals with setting up trusts, so ideally I could either use his other services or ask him if he could recommend any other good CPAs in the area.

Also my aunt is an excellent CPA in Chicago so I could always ask for her help (wouldn't mind if she knew I won since she's already very well off). It would be my last choice, since I would want my financials and f... [ More ]

Reply #19

savagegoose — Mon, 20 Dec 2010 19:48:58 GMT

the take when you win is just that years tax. assuming you invest properly, the tax man will be back every years to tax any profit you make on the remaining money.

Reply #18

Littleoldlady — Mon, 20 Dec 2010 15:18:35 GMT

In lieu of all of the scams and outright stealing going around be sure to VERIFY the person's credentials and their reputation. Ask many, many questions..relating to customer satisfaction, how many clients do you have, how long have you been in business,find out if they are having money problems, check out their lifestyle, etc. If you get any funny twinge, move on the next one or you could wind up paying for the mansion your financial planner is living in.

Personally, I would hire a private d... [ More ]

Reply #17

RJOh — Mon, 20 Dec 2010 15:15:32 GMT

* H R Block has a Deluxe version of their software for those who have a higher than average income.

Reply #16

Stack47 — Mon, 20 Dec 2010 15:08:39 GMT

It's obvious the lottery won't be sending the jackpot winner bags of cash so they need a bank account where they can deposit the check. Most banks have financial advisers that will explain what their bank has to offer to get their best return on your investments. If the winner is satisfied with their banks rate of interest, they could stop right there.

A tax preparer or an accountant are financial experts but I would go to a firm that has the most experience with 7 digit tax returns. I wouldn... [ More ]

Reply #15

sully16 — Mon, 20 Dec 2010 13:57:18 GMT

A good CPA , also do a background check on the bank you chose, don't want one thats going under.

your money is only insured up to a certain amount.

Reply #14

ttech10 — Sun, 19 Dec 2010 20:45:14 GMT

This is on the Wikipedia page for the lottery ( Lottery jackpot records to be exact):

The IRS requires at least a 25% withholding of any gambling wins in excess of $5000. However, the take home pay for a large jackpot winner is often misleading. Winners often find themselves in a tax bracket much greater than 25% and have to pay any remaining balance owed to the IRS later when they file their returns.

So since every lump sum payment would put you in the 35% tax bracket you would have

Reply #13

Colt45ML — Sun, 19 Dec 2010 18:43:40 GMT

Do you think a professional planner or attorney is more likely to try to kill you and take your money than so called friends, relatives, aquaintaces, and just plain people from your past are to get a lawyer and try to sue you at best, and at worst, try to do more criminal acts in order to get their hands on that money? The number one priority, in my opinion, for a mega millions or powerball jackpot winner is to protect his assets, and the first act of asset protection is to make sure if at all p... [ More ]

Reply #12

Litebets27 — Sun, 19 Dec 2010 16:43:26 GMT

Great topic...

I believe it all depends on how much time you are willing to dedicate to following your money and the tax laws and know how much you need to save for the future. Research...research...research.

I also experienced being audited. After putting in many hours of reading the tax laws and hours of speaking with IRS agents and their advisors, I was able to resolve my problem and get every penny back.

After win a large Jackpot, if you drop the money into a safe account and give y... [ More ]

Reply #11

PERDUE — Sun, 19 Dec 2010 16:17:12 GMT

Learn to handle your money........

Or your money will handle you..........

Remember:

You make money..........

Money doesn't make you.........

Reply #10

Fla386 — Sun, 19 Dec 2010 13:50:32 GMT

Not me,no financial advisor here,i can spend it all by myself

Reply #9

kapla — Sun, 19 Dec 2010 10:12:16 GMT

Yes, but after year one you will need a good accountant. And I agree with all the comments about needing an accountant. I also agree that MOST financial planners/brokers/financial advisers are just SALESPEOPLE. But knowing that going in, you can use that to your advantage. If you have a strong, specific goal and stick to it you will either walk out with a fair deal or just walk out. Most of them work on some form of commission/bonus so shopping around you should be able to find a good comfortabl... [ More ]

Reply #8

iGlenn — Sun, 19 Dec 2010 01:28:21 GMT

Most of the state lotteries only withhold 25% for the IRS. But the top tax bracket is 35% which you would be in with a PB/MM win. So you'd have to pay an additional 10% when you file.

Reply #7

Luckysaloneman — Sat, 18 Dec 2010 23:44:51 GMT

I thought the IRS acts on Uncle Sam's behalf by taxing and taking away a chunk of the money before the check hits the jackpot winner's bank account? Was I wrong in that assumption

Reply #6

Luckysaloneman — Sat, 18 Dec 2010 23:41:43 GMT

I thought the IRS always takes its own well BEFORE the lottery money hits the winner's bank account, hu

Reply #5

ttech10 — Sat, 18 Dec 2010 23:29:20 GMT

I think the only thing a lottery winner really needs is a good accountant as I'm sure the folks at the local H R Block don't usually deal with people who have millions.

I'd say only those who don't know how to save and only spend are the only ones who should get financial planners, but then I think of Jack Whitaker. Before winning the lottery he was worth something like $15 million and still he used the money unwisely. Aside from how much he spent on his grand-daughter (right?) I read ot... [ More ]

Reply #4

Coin Toss — Sat, 18 Dec 2010 20:36:28 GMT

I also agree with kapla and will add this, the money saved by not hiring a financial planner may wind up being mere chump change compared to the money that could be lost by not hiring one.

I'm also sure there are financial planners out there who handle accounts that are a lot larger than lottery winners accounts.

Reply #3

iGlenn — Sat, 18 Dec 2010 19:49:51 GMT

I've happen to have had some success in the stock market. Along with capital gains in the market comes taxes. I hate doing taxes and therefore have an accountant. I carefully review the documents and tax laws to make sure that what is being submitted is lawful and accurate. I was forced to hire a tax attorney because I was audited and the IRS claimed I owed several thousand dollars more. My attorney and accountant cleared things up without any additional funds being paid to the IRS. Obviously, m... [ More ]

Reply #2

johngreek — Sat, 18 Dec 2010 18:32:49 GMT

i agree with kapla

Reply #1

kapla — Sat, 18 Dec 2010 18:13:16 GMT

The real reason MOST winners need them is this- If you are living paycheck to paycheck and you ONLY know how to SPEND money and not SAVE then you are in BIG trouble. But if you know and understand the value of savings and the need to put money away for the future (401k, IRA, 529 ect) then you should be ok.

Does A Lottery Winner Really Need A Financial Expert?

Luckysaloneman — Sat, 18 Dec 2010 18:03:32 GMT

At first glance, it makes a lot of common sense to hire the services of a financial expert after winning the lottery. At the risk of sounding paranoid, however, I will suggest that a lottery winner does NOT need the services of the so-called financial experts. By bringing a complete stranger into his newfound wealth, a lottery winner is courting needless danger. Depending on the deviousness of the so-called financial experts hired, a lottery winner could be courting trouble, even death. By bring... [ More ]