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$220M Mega Millions lottery jackpot advice offered

Mega MillionsMega Millions: $220M Mega Millions lottery jackpot advice offered

Hit the Mega Millions jackpot? Here's some advice on what to do next

A drool-inducing $220 million is up for grabs in Tuesday night's Mega Millions lottery drawing. Before all that green goes to your head, we asked three Atlanta-based experts what should be the first five things on a lottery winner's to do list.

Barry Berlin, managing director of the Atlanta office of Atlantic Trust, a private wealth management firm and subsidiary of Invesco:

• Cold call successful people and ask them to recommend financial advisers. Hire a financial adviser, who doesn't work on commissions.

• Pick a place to park the money on the first day. Think safe, short-term and liquid instruments, such as Treasury bills. Don't put it all in a single financial instrument.

• Develop long-term plans for managing the money.

• Set a limit on immediate spending and don't go over it.

• Don't try to change everything about your life right away. "It takes time to get used to what the funds can do."

Sheryl Pressler, consultant and former chief investment officer of the nation's largest public pension fund, the California Public Employees' Retirement System:

• Keep quiet and don't rush to claim your winnings.

• Get a lawyer with expertise in handling lottery winnings. Consider putting ownership of the ticket into a limited liability corporation or partnership to limit potential tax liability and to obscure your identity.

• Don't change anything major in your lifestyle for the first year.

• Take courses to get educated about money management and investing.

• Hire a fee-based financial adviser who is at a reputable firm and experienced in handling large sums of money.

Stephanie Casteel, partner in trusts and estates for King & Spalding:

• Get an unlisted phone number before claiming the prize. A lottery winner she represented was inundated with calls, packages, flowers and balloons sent by financial advisers, people seeking money, etc.

• Put the unclaimed ticket somewhere safe, such as a safe-deposit box, until you are prepared to claim it.

• Hire a good tax or trusts and estates lawyer. Winnings can incur federal and state taxes of up to 41 percent, plus there can be additional taxes on gifts to people. Later, hire an accountant and a financial adviser. One financial adviser she's familiar with charged a flat $100,000 a year.

• Protect yourself from liability. Put ownership in a legal entity, such as a limited liability corporation to reduce potential liability from lawsuits and limit gift taxes.

• Be wary of friends. "Everybody has the next great deal."

AJC

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28 comments. Last comment 6 years ago by Avid Playa.
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Downhere, S.C.
United States
Member #35033
March 11, 2006
1956 Posts
Offline
Posted: February 19, 2008, 11:51 pm - IP Logged

Really good advise. I can think of a potential hazard on each one of these listed if you don't plan ahead. I guess protecting your investment (winnings) is the key, but most of all " Yourself ". Thanks Todd.

Joe

US FlagPlease Pray For Our Troops And Their Families.

    dumars798's avatar - batman17
    Atlanta
    United States
    Member #28656
    December 20, 2005
    5660 Posts
    Offline
    Posted: February 20, 2008, 12:14 am - IP Logged

    Good Info!!

            Smart bets...... Equal Phat Pocket$!

                         

                 





      JackpotWanna's avatar - squiz

      United States
      Member #4121
      March 23, 2004
      770 Posts
      Offline
      Posted: February 20, 2008, 12:20 am - IP Logged

      Nice!  Thank you.

        ThatScaryChick's avatar - AbnSTiA

        United States
        Member #56506
        November 21, 2007
        4432 Posts
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        Posted: February 20, 2008, 12:55 am - IP Logged

        Good advice. Yes Nod

        "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

          chasingadream's avatar - Archangel 01.jpg

          United States
          Member #38687
          May 3, 2006
          315 Posts
          Offline
          Posted: February 20, 2008, 2:36 am - IP Logged

          thx....... good advice

          Oogle  waiting patiently for my jackpot

            Avatar
            New Member

            United States
            Member #36729
            April 6, 2006
            1 Posts
            Offline
            Posted: February 20, 2008, 4:27 am - IP Logged

            Thanks

              spy153's avatar - maren

              United States
              Member #28409
              December 15, 2005
              1198 Posts
              Offline
              Posted: February 20, 2008, 7:54 am - IP Logged

              Okay, what about people who don't want to invest the money at all?  Or, if you're really bad at money, just take the annuity. 

              voir-vous dans mes reves!Cool

                JackpotWanna's avatar - squiz

                United States
                Member #4121
                March 23, 2004
                770 Posts
                Offline
                Posted: February 20, 2008, 8:42 am - IP Logged

                Okay, what about people who don't want to invest the money at all?  Or, if you're really bad at money, just take the annuity. 

                Annuity is Great too. Age is a factor.

                With the current mega jackpot this high it maybe better to take the Annuity.

                Current mega jackpot 270 mil = 10+ mil /a year/26 year.

                Less pressure,  Money keeps coming in. 

                control spending, keep a budget 

                Say to moochers"money tied up" 

                Less big investment mistakes( no rush to invest) (avoiding scams) ( Current stock market is bearish )( Real estate balloon has popped ) 

                Pay less taxes

                I read most finanical advisors say take annuity.

                  OldSchoolPa's avatar - Lottery-057.jpg
                  Gurnee, Illinois
                  United States
                  Member #49731
                  February 12, 2007
                  835 Posts
                  Offline
                  Posted: February 20, 2008, 1:25 pm - IP Logged

                  Hit the Mega Millions jackpot? Here's some advice on what to do next

                  A drool-inducing $220 million is up for grabs in Tuesday night's Mega Millions lottery drawing. Before all that green goes to your head, we asked three Atlanta-based experts what should be the first five things on a lottery winner's to do list.

                  Barry Berlin, managing director of the Atlanta office of Atlantic Trust, a private wealth management firm and subsidiary of Invesco:

                  • Cold call successful people and ask them to recommend financial advisers. Hire a financial adviser, who doesn't work on commissions.

                  • Pick a place to park the money on the first day. Think safe, short-term and liquid instruments, such as Treasury bills. Don't put it all in a single financial instrument.

                  • Develop long-term plans for managing the money.

                  • Set a limit on immediate spending and don't go over it.

                  • Don't try to change everything about your life right away. "It takes time to get used to what the funds can do."

                  Sheryl Pressler, consultant and former chief investment officer of the nation's largest public pension fund, the California Public Employees' Retirement System:

                  • Keep quiet and don't rush to claim your winnings.

                  • Get a lawyer with expertise in handling lottery winnings. Consider putting ownership of the ticket into a limited liability corporation or partnership to limit potential tax liability and to obscure your identity.

                  • Don't change anything major in your lifestyle for the first year.

                  • Take courses to get educated about money management and investing.

                  • Hire a fee-based financial adviser who is at a reputable firm and experienced in handling large sums of money.

                  Stephanie Casteel, partner in trusts and estates for King & Spalding:

                  • Get an unlisted phone number before claiming the prize. A lottery winner she represented was inundated with calls, packages, flowers and balloons sent by financial advisers, people seeking money, etc.

                  • Put the unclaimed ticket somewhere safe, such as a safe-deposit box, until you are prepared to claim it.

                  • Hire a good tax or trusts and estates lawyer. Winnings can incur federal and state taxes of up to 41 percent, plus there can be additional taxes on gifts to people. Later, hire an accountant and a financial adviser. One financial adviser she's familiar with charged a flat $100,000 a year.

                  • Protect yourself from liability. Put ownership in a legal entity, such as a limited liability corporation to reduce potential liability from lawsuits and limit gift taxes.

                  • Be wary of friends. "Everybody has the next great deal."

                  It is clear that all of the advisors are biased toward fee based planners (I happen to not be a fee based planner, but my clients all know I do an excellent job for them).

                  So this is what I would do when I win the Mega Millions jackpot:

                  1) No need to cold call celebrities...I will meet with my Primerica RVP and invest a large portion of the funds in various load mutual funds.

                  2) Consult with my PLPP law firm about setting up trusts and go through estate planning.  Have already determined I would claim the winning ticket in either a trust or LLC.

                  3) Get a PO box...for all lottery mailings.

                  4) Reinterview tax accountants.

                  5) Continue getting my free personal finance education through my trustworthy Primerica representative who happens to be paid based on commissions.  FYI a person being paid via commissions isn't the problem; the problem is people making unsuitable recommendations merely to garner more commissions (i.e. a stockbrocker churning investments, a financial rep recommending an annuity when a rollover to an IRA fits the bill, etc.).

                  6) Set a budget but still buy desired auto, clothes and home.

                  Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                  The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                    showme3's avatar - Lottery-012.jpg
                    Toms River, NJ
                    United States
                    Member #32600
                    February 13, 2006
                    205 Posts
                    Offline
                    Posted: February 20, 2008, 8:13 pm - IP Logged

                    It is clear that all of the advisors are biased toward fee based planners (I happen to not be a fee based planner, but my clients all know I do an excellent job for them).

                    So this is what I would do when I win the Mega Millions jackpot:

                    1) No need to cold call celebrities...I will meet with my Primerica RVP and invest a large portion of the funds in various load mutual funds.

                    2) Consult with my PLPP law firm about setting up trusts and go through estate planning.  Have already determined I would claim the winning ticket in either a trust or LLC.

                    3) Get a PO box...for all lottery mailings.

                    4) Reinterview tax accountants.

                    5) Continue getting my free personal finance education through my trustworthy Primerica representative who happens to be paid based on commissions.  FYI a person being paid via commissions isn't the problem; the problem is people making unsuitable recommendations merely to garner more commissions (i.e. a stockbrocker churning investments, a financial rep recommending an annuity when a rollover to an IRA fits the bill, etc.).

                    6) Set a budget but still buy desired auto, clothes and home.

                    Total BS........  Commision based Financial Planners are worse Thieves  than Lawyers.  They get their commissions upfont so why would they care if the investments they put you in lost you money.   They already got paid........... On to the next sucker.........  If you lose money they just blame it on market conditions, not their investment recomindations that they already got paid on.....this sounds like a spam for Primerica.  Just my oppinion.  Be very carefull investing a large sum of money.  MY best advice. interview many so called financial planners, take you time, make them show you their track record. Heck with that kind of money ask for a guarrenteed return and see what they say. 

                     

                    Hoping to hit the big one on Friday!

                    goodluck to all,

                     

                    Don 

                    GO NJ DEVILS! STANELY CUP HERE WE COME! Red Devil

                      gocart1's avatar - lighthouse
                      da bronx,city island,n.y.
                      United States
                      Member #30516
                      January 17, 2006
                      331 Posts
                      Offline
                      Posted: February 21, 2008, 3:43 pm - IP Logged

                      YES ...thanks Todd......this is the stuff i'm looking for,,,,just hope i get to use it someday............

                        Avatar
                        New Member

                        United States
                        Member #58630
                        February 22, 2008
                        2 Posts
                        Offline
                        Posted: February 22, 2008, 10:33 am - IP Logged

                        NEVER take the annuity...regardless, that is just the dumbest thing to do and exactly what they want you to do.

                          Trained2beRich's avatar - home
                          Houston,TX
                          United States
                          Member #35196
                          March 13, 2006
                          54 Posts
                          Offline
                          Posted: February 22, 2008, 11:12 am - IP Logged

                          It is clear that all of the advisors are biased toward fee based planners (I happen to not be a fee based planner, but my clients all know I do an excellent job for them).

                          So this is what I would do when I win the Mega Millions jackpot:

                          1) No need to cold call celebrities...I will meet with my Primerica RVP and invest a large portion of the funds in various load mutual funds.

                          2) Consult with my PLPP law firm about setting up trusts and go through estate planning.  Have already determined I would claim the winning ticket in either a trust or LLC.

                          3) Get a PO box...for all lottery mailings.

                          4) Reinterview tax accountants.

                          5) Continue getting my free personal finance education through my trustworthy Primerica representative who happens to be paid based on commissions.  FYI a person being paid via commissions isn't the problem; the problem is people making unsuitable recommendations merely to garner more commissions (i.e. a stockbrocker churning investments, a financial rep recommending an annuity when a rollover to an IRA fits the bill, etc.).

                          6) Set a budget but still buy desired auto, clothes and home.

                          HMMM.... You must love where you work. I have 2 issues wih your suggestion... a LOADED mutual fund as opposed to a no load mutual fund.  Who says Primerica is better or as good as Vanguard and Fidelity?  And yes I watch Suze Orman.

                            Trained2beRich's avatar - home
                            Houston,TX
                            United States
                            Member #35196
                            March 13, 2006
                            54 Posts
                            Offline
                            Posted: February 22, 2008, 11:21 am - IP Logged

                            Of the 3 advisors I would actually want to work with either Sheryl or Stephanie.  The answers are more in line with the way that I think.  Yes you can find a great advisor but not everyone wants 20% returns.  I wonder how it would be if i bought into AAA muni bonds for the first 5 years with a ladder maturity schedule and then after they all mature rethink how i want to invest.  I would be happy with an income stream of 10k a month with the rest reinevested.  I know the first thing I would buy for myself are bionic hearing aids to replace the ones I have.