Why do jackpot winners feel the need for an attorney or financial adviser?

Reply #36

KY Floyd — Wed, 10 Feb 2016 03:09:15 GMT

Since you're already s financial expert who's capable of managing millions of dollars, why isn't that what you do for a living

Reply #35

Coin Toss — Wed, 10 Feb 2016 00:58:04 GMT

LiveInGreenBay,

Far better to pit a little effort into finding a decent attorney and financial adviser than to deal 'unprotected' with masses of bloodsucking relatives, acquaintances, current and former co-workers, con men and women, scam artists, terrorists who want a cut of your winnings or all of them, etc....

Reply #34

LiveInGreenBay — Tue, 09 Feb 2016 21:05:02 GMT

Yea and which are you? A blood sucking lawyer or financial expert who can't find a real job

Reply #33

cbr$ — Tue, 09 Feb 2016 18:19:59 GMT

I'll hire a attorney just to look over any contacts to explain all the small print in them. I hire a financial adviser tell them up front what I'm really interested in listen to some of their suggestion. FDIC pays $ 250,000 per account. You figure out before hand interest your going to get on your accounts to it never excess the limit. Why? The government only pays up to $250,000, per. a account.If some thing happen in this bank let say one of your account is showing $259,000. The government wil... [ More ]

Reply #32

Romancandle — Tue, 09 Feb 2016 15:23:19 GMT

yeah... no need to hire financial experts or attorneys... just post your legal and investment strategy questions here at the LP

Reply #31

savagegoose — Tue, 09 Feb 2016 12:25:08 GMT

Excellent point made there noise-gate.

and othere, he had a plan just not the self discipline to stick with it.

Reply #30

Stack47 — Tue, 09 Feb 2016 03:23:09 GMT

I've wondered that too unless the prize winner is using a trust fund. All lotteries have rules lawyers would have to argue against in court which means the prize winner could wait months to collect. Maybe people want to see a financial adviser before validating their ticket is to get directions to lottery headquarters.

Once the money is in the account, lawyers and financial adviser can be very helpful.

Reply #29

Dreaming Gemini — Tue, 09 Feb 2016 03:17:29 GMT

I totally agree with you and Arizona Dream. I also have no heirs that I need to worry about after my departure. Whether I take home 7 mil or 50 mil, make that money last the 40 years of my maximum remaining life, and I'll be happy as a clam. Obviously the more the merrier life, as well as the merrier amounts I can share with loved ones.

Reply #28

Murgatroyd — Tue, 09 Feb 2016 03:01:56 GMT

As the saying goes, I am more concerned about the return of my money than the return on my money. When you're dealing with enough money to last a reasonable person for a lifetime, that's a good philosophy.

Reply #27

ArizonaDream — Tue, 09 Feb 2016 02:04:25 GMT

The issue there wasn't lack of a decent plan, but lack of self discipine to follow the plan.

Reply #26

Redd55 — Tue, 09 Feb 2016 01:50:01 GMT

But there are smarter ways of going about it besides just handing them cash. Paying for a hospital bill directly to the hospital or tuition directly to the school has lower tax consequences.

Reply #25

ArizonaDream — Tue, 09 Feb 2016 01:31:10 GMT

There's also a 5.something million lifetime exclusion of gift and inheritance taxes.

Taxes would not stop me from doing what I thought was right about sharing with a couple of people close to me.

Reply #24

noise-gate — Tue, 09 Feb 2016 01:14:48 GMT

This piece of a lottery winner by the name of David Lee Edward who won $27 million after taxes..

'I want this money to last, for me, for my future wife, for my daughter and future generations.'

Shortly after his win, he hired a financial adviser and a lawyer to look after his assets.

'If he followed my advice, he'd be pulling in about $85,000 a month for the rest of his life,' financial planner James Gibbs told the Broward-Palm Beach New Times in 2007.

Instead, Gibbs says, Edwar... [ More ]

Reply #23

mrbg — Tue, 09 Feb 2016 01:02:01 GMT

Another thing I hear people say is how much they would give to people. Alot of people are unaware of the 14k gift in a year because anything over the irs wants taxes. I would get a good tax attorney for sure.

Reply #22

ArizonaDream — Tue, 09 Feb 2016 00:57:45 GMT

Any financial planner that tells me to invest primarily in mutual funds will be fired right away.

Preservation of capital, lowest risk investments are all I need. I have no heirs I need to provide for, no reason to take any risk. Just map out a spending plan/budget to make the money last the rest of my life.

Reply #21

Rexer90 — Mon, 08 Feb 2016 22:59:17 GMT

You listed the reason why you need a financial adviser right there in your post. You think it's a good idea to get 1% interest at the bank instead of 5-8% with mutual funds etc... So yeah, you need a financial adviser....

Reply #20

LiveInGreenBay — Mon, 08 Feb 2016 22:36:10 GMT

Good advice from you folks, thanks. Now all I have to do is win a mulit-million dollar jackpot.

Reply #19

Teddi — Mon, 08 Feb 2016 18:45:54 GMT

I saw someone write pretty much the same thing on another blog. She said it's stupid to pay someone to take care of your money, she's been handling her own money for years and she wasn't going to hire someone to do it if she won the lottery. She then said that she intended to give family and friends $X million which far exceeded the lifetime gift tax allowance. I had a good laugh.

Even if you know better than to do that, unless you're an accountant or tax attorney, you don't know the tax law... [ More ]

Reply #18

IJustWannaWin — Mon, 08 Feb 2016 16:43:36 GMT

I can't believe there is so much aversion to hiring professionals on this thread. First off, like any profession, there are lawyers and there are GOOD lawyers. A GOOD lawyer will help you to minimize the target on your back - because that is what you are...a target. People HATE rich people and they especially hate rich people who didn't work for their wealth. It is very easy to be envious of a lottery winner and envy is a dangerous thing. Husbands and wives, siblings, and parents and children ha... [ More ]

Reply #17

Coin Toss — Mon, 08 Feb 2016 15:55:45 GMT

LiveInGreenBay

The OP is very reminiscent of a union member complaining about a $5 raise in union dues when that raise in dues gets them another $35 a week in pay.

Just my $.02 but I find it curious that people trying to win millions would begrudge spending some shekels on financial advice.

Reply #16

GoogilyMoogily — Mon, 08 Feb 2016 14:46:28 GMT

Protect the principal from me wasting it or foolish investments.

Protect the principal from others trying to sue for chunks of it.

Reply #15

meenzy — Mon, 08 Feb 2016 14:44:30 GMT

I read an article about this, one interesting point that was brought up that resonates with me as I would feel guilty is you have a scapegoat if you feel bad saying no to people. Allot of times with such publicized lotteries you will get thousands of requests from anyone and everyone. You can simply say I gave full authority to my financial and legal team to manage my accounts assets here is there card please contact them. One reason why people (not so much family but hey sometimes even them) do... [ More ]

Reply #14

Redd55 — Mon, 08 Feb 2016 13:44:33 GMT

You want an atty who specializes in wills and trusts to make an iron clad will that reflects your wishes and that minimizes taxes to your estate.

Reply #13

maximumfun — Mon, 08 Feb 2016 08:47:55 GMT

dont need an esq or f.a. to pay off debts. dont need an esq or f.a. or acct to tithe - would need one to set up trust accts, but wouldnt do trusts so - no need. sounds more like i would need a magician to double my salary prior to a lottery win (what I earn now)... but ok so needed staff = 1 magician thus far. dont need anyone to withdraw money and put into separate account for livng expenses for year. needed staff count = still 1 magician accrued interest from winnings for car/big purchases/vac... [ More ]

Reply #12

One-Day — Mon, 08 Feb 2016 02:41:33 GMT

Take the annuity and avoid all the headaches. Unless you are a financial adviser or somebody in the financial arena, take the annuity. Otherwise there is a good chance you will lose all your money by error, theft, bad investments, bad advice, or/and excessive purchases. You can even lose your life, your spouse due to so much stress right off the bat. Give yourself time to become responsible and educated in the financial area. The first payment is more likely more than enough to live comfortably

Reply #11

GatorShea — Sun, 07 Feb 2016 23:20:26 GMT

Pay off all your debts. Give what money you intended to give away to the people and organizations and set up trust accounts for your kids. Take what you have been earning each year prior to winning and double it. Take that amount per year out and live off of that. Use any accrued interest from your winnings to make car or other luxury purchases or pay for vacations. If you have 10 million in the bank and can't live a comfortable full life then you are a fool.

Reply #10

Coin Toss — Sun, 07 Feb 2016 23:15:42 GMT

Oh let's say you win tens of millions and decide to give quite a chunk to a charity.

Nice gesture, but a financial adviser would show you how to set up a special fund that would pay the charity annually. Just 'little' things like that.

With current interest rates (which are insults) good luck on going through a bank and living off the interest.

Reply #9

lulu1feather — Sun, 07 Feb 2016 22:27:51 GMT

I don't think I would get a financial adviser, but I would definitely want someone who would help me with taxes, and getting a will and trust set up

Reply #8

JoshUK — Sun, 07 Feb 2016 22:22:07 GMT

I don't think that I would need a lawyer in the UK if I ever won but I would for sure get a financial adviser...

Reply #7

ArizonaDream — Sun, 07 Feb 2016 22:14:44 GMT

Better watch for waiting too long to claim. In Illinois, you have to claim within 60 days of the drawing to choose the cash option. After that it's annuity only.

Reply #6

ArizonaDream — Sun, 07 Feb 2016 21:04:50 GMT

Good point about insurance. I will add a visit to my insurancce agent for increased coverage to my to-do list.

Reply #5

music* — Sun, 07 Feb 2016 20:59:43 GMT

A winner could buy Umbrella Insurance coverage. Another is Excess Liability Coverage.

When talking about CD's you should look at www.cdars.com

The maximum FDIC coverage here in the States is $250,000.00. Talk with a banker about different accounts like retirement acounts, and other accounts.

Reply #4

TheMeatman2005 — Sun, 07 Feb 2016 20:53:13 GMT

You have been a member on Lottery Post since October 15, 2015 and have written 133 Posts. That should be long enough to have learned of all the reasons you need to get a legal financial team together before claiming a lottery jackpot.

Let's say, for example, on the way home from the lottery after claiming your jackpot, you hit another car or worse, a pedestrian. Without the benefit of being an LLC, you can be sued for every penny you have. Whereas if you are protected by an LLC, they can't se... [ More ]

Reply #3

savagegoose — Sun, 07 Feb 2016 19:23:54 GMT

thats why you need auditors to keep track of the finances, and lawyers to check all your contracts. and ONLY your signature to transfer money. and lawyers to check on your lawyers. what is FDIC cover anyhow? $1 mill per account, so with say 200 mil you need 200 bank accounts to cover all your finances. there are tax efficient investments that you would need help to set up. like manage your money in a corporation, and only pay company tax instead of personal tax on the income. as the manager of t... [ More ]

Reply #2

ArizonaDream — Sun, 07 Feb 2016 19:23:17 GMT

I think I could do without any financial planner.

I would hire a tax accountant. I would have a lawyer draw up a will.

I think I would form a trust or LLC for real estate purchases, to keep my name out of easily searchable county records.

I might take a financial planning course myself, but short term, the money will go into CDs and t-bills.

Reply #1

sookie — Sun, 07 Feb 2016 19:16:24 GMT

If they are smart they don't give power of attorney and keep an eye themselves on the money.

But you (general you) in my opinion need help getting started. Where to put the money, options, tax advice, trust funds ect

Just because someone hires advisers doesn't mean they have to do what they say, people should still take responsibility for their money and finances.

Why do jackpot winners feel the need for an attorney or financial adviser?

LiveInGreenBay — Sun, 07 Feb 2016 19:03:24 GMT

If I ever won a major jackpot why would I need the advice of a high-priced attorney or financial adviser ? Common sense tells me to save my money. I'd distribute the money through several banks and live off the interest. As for the attorney and financial adviser...Who's going to watch over the watchers? I don't trust them. In Wisconsin recently an attorney was accused of fraud...She stole millions from clients. Way too many greedy people out there now days. Just my two cents.