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Money Matters: Sudden wealth advice

Topic closed. 80 replies. Last post 7 years ago by Dollar419.

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Coin Toss's avatar - shape barbed.jpg
Zeta Reticuli Star System
United States
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January 17, 2006
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Posted: April 11, 2010, 3:52 pm - IP Logged

This is from an article in a local business journal. Nothing surpriszing, but some good advice. The article is about people coming ointo windfalls, and in the beginning of it he specifically mentione lottery winners.

Get financial guidance from a qualified source.

You would think that anyone who receives a six-figure or seven-figure check would immediately talk to a financial professional. But that is not always the case.

Some people put it opn their "to-do list" and then go out and do otgher things with the money. Some never bother to seek qualified advice at all. Instead, they listen to relatives or neighbors.

The problem is, sometimes these relatives or neighbors:

  • Have never had great amounts of money and do not understand the responsibilities that come with it
  • Only see wealth in terms of material things or purchases
  • Would like to vicariously live out their fantasies as a by product of your good fortune
  • Urge you to take chances (risks) with your money
  • Assume that yopu are "set or life"Want you to look at wealth from their mentality, or want you to associate with their shady lifestyle.

While your relayives and neighbors may mean well, they are likely not financial advisers. In fact, some advisers aren't well equipped to consult with people with sudden weslth either.

Scott McClatchey

Southern Business Journal

________________________________________________

I remember reading about a jackpot winner who talked about her sister-in-law saying, "Now that we've won". His comments above about relatives and neighbors certainly smacks of that.

Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

Lep

There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

    THRUST's avatar - f35l

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    Posted: April 11, 2010, 5:18 pm - IP Logged
    Never listen to friends, family or neighbors...this is obvious.

    Seeking not 1 but multiple professionals would be a good idea.

    Trust your gut...if something feels like a bad idea...then don't do it.

    there is a great article on this. Just search "8 lottery winners lose their millions" it is on an MSN site.
    Create a Decision Free Zone. Take time to really think about who, what, when, where & why...with your money.
    Or you could just p*ss it all away...it is your money. Smiley

    $1,000,000

      Avatar
      New York,
      Panama
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      April 4, 2009
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      Posted: April 11, 2010, 5:21 pm - IP Logged
      Never listen to friends, family or neighbors...this is obvious.

      Seeking not 1 but multiple professionals would be a good idea.

      Trust your gut...if something feels like a bad idea...then don't do it.

      there is a great article on this. Just search "8 lottery winners lose their millions" it is on an MSN site.
      Create a Decision Free Zone. Take time to really think about who, what, when, where & why...with your money.
      Or you could just p*ss it all away...it is your money. Smiley

      Yes it's your money, THRUST is right, but pleeeeeeeese try not to "P#ss" it all away!! Please!

      forget what "they" say about youWhat you say about you?...

      Now, does it count??

       

       

      *Jr$ina

        ca-dreamin*'s avatar - Lottery-065.jpg
        Chicago
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        Posted: April 11, 2010, 5:50 pm - IP Logged

        Thanks for sharing this Coin Toss.

        It wouldn't suprise me that people who can't make their own decisions with everyday stuff would turn to the wrong people for something big like this.

        I agree that you should also seek the advice of more than one advisor because EVEN they might not have YOUR best interests in mind.

          sully16's avatar - sharan
          Ringleader
          Michigan
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          October 28, 2009
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          Posted: April 11, 2010, 6:35 pm - IP Logged

          Thanks for sharing this Coin Toss.

          It wouldn't suprise me that people who can't make their own decisions with everyday stuff would turn to the wrong people for something big like this.

          I agree that you should also seek the advice of more than one advisor because EVEN they might not have YOUR best interests in mind.

          I Agree!  you also need to learn finance in a hurry so you don't get taken.

          Did you exchange a walk on part in the war ?

          For a lead role in a cage?

           

                                                      From Pink Floyd's " Wish you were here"

            lottocalgal's avatar - Lottery-043.jpg
            CA
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            Posted: April 11, 2010, 7:05 pm - IP Logged

            I Agree!  you also need to learn finance in a hurry so you don't get taken.

            I agree, But  I'd think of consulting a tax attorney. 

            Everytime I hear the word "Financial Planners" or "Advisor,"  all I picture are the slugs out their that are stealing clients money.  I mean  How do you protect yourself?  I just watch a special on television. I think it was American Greed when the "advisors" was supposed to be placing his clients money in a simple money market account but kept taking the money in and out of high risk investments and forcing the client to pay early withdrawal penalties that they werent even aware of.  Not because he didn't pay attention but because his trustworthy advisor went behind him back.  I mean how can you know. 

            Two words--Bernie Maddoff!

            Id rather just stick it in simple multiple CDAR accounts and earn the standard interest and consult a strait fee based attorney and none of that billable hours crap!  Just staight payment for consulations.

              Lucky Loser's avatar - bucks
              Texas
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              Posted: April 11, 2010, 10:02 pm - IP Logged

              This is a very good topic. Most people are already in a tough way when it come to finances, and, if they're not accustomed to handling the money they have efficiently then they're surely not ready for lottery winnings. Here lies the problem. They're so elated about the win that all they can think of is pleasures as opposed to business and this is what causes the money to go very quickly.

              In my opinion, the absolute best thing a person can do is to just take some time and let the win "soak in" for a little while. Remember, we have (180) days to claim the money and all this time will allow us to "set up camp" regarding business matters a well as getting accustomed to thinking and acting business-like. This is very important, people.

              Let's think retirement, interest, investing, returns, and profits instead of Porsche, $1 million dollar house, every day at the mall, and things you wouldn't normally do. Yeah, it's okay to enjoy it but, do it within reason and respect to your future. Set your kids up with something and do some charity...it'll come back.

              Money is designed mostly to take care of business, first, and then for pleasures...contrary to popular belief. There are many a people who wish they had all that money again so they could act differently. It's too late now, though. NOW is the time to plan for the future...and to GROOM one's self for it likewise. PATIENCE, DISCIPLINE, OPPORTUNITY, SYSTEM, MONEY, WISDOM, and all these good thing provide for a healthy and prospersous future.

               

              L.L.

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                Posted: April 11, 2010, 10:41 pm - IP Logged

                I would be wary about consulting "professionals" because they can easily take advantage of you.

                  THRUST's avatar - f35l

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                  Posted: April 12, 2010, 12:50 am - IP Logged

                  I would be wary about consulting "professionals" because they can easily take advantage of you.

                  Not if you do a little homework...You could learn all about it and try to manage/invest it yourself...but then you would be worried about your money all the time...if you can find someone you trust and has a good track record...then they can worry about your money while you are living it up. Party

                  $1,000,000

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                    Posted: April 12, 2010, 2:07 am - IP Logged

                    I would be wary about consulting "professionals" because they can easily take advantage of you.

                    If you don't know enough that you'll recognize it if a professional is trying to take advantage of you, how will you manage without help from a professional?

                      savagegoose's avatar - ProfilePho
                      adelaide sa
                      Australia
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                      Posted: April 12, 2010, 6:26 am - IP Logged

                      there used to be a thing called professional indemnity insurance., where you could be insured against the professional  losing your money. unfrtunately i think it was colvered by AIG.

                       

                      i was told it was insurance against them giving you bad advice.

                       

                      dunno how true it is, but if the win was big enough id sure be asking for a copy of the insurance polciy before dollar 1 gets sent to the planner.

                       

                      basically how hard is it? set a budget, $100k a month and you are under budget, personally i wouldnt mind postponing satisfaction for 6 months before i buy my super porsche.

                      it would mean i eat at the resturant, 3 days aweek instead of 6.

                      plan for me would be , see my budget and how much money i have ea month to spend, and always remeber to take out expenses once i rack them up.

                      like insurance, car maint, pool maint,  house maint, taxes.

                       

                      hell thats sound too hard i think ill stay at hotel and be chauffered around. as long as it remaINS UNDER BUDGET.

                      2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                      keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                        THRUST's avatar - f35l

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                        Posted: April 12, 2010, 7:46 am - IP Logged

                        ^

                        If you are spending $100k a month...you got problems and will be broke within a year. Like I said it is your money and if you want to p*ss it all away...then go ahead, more power to you. Try a budget of $10k-$25K a month...or less. Just because you won the lottery doesn't mean you can go crazy...even celebs go broke after earning mega millions type money. 

                        $1,000,000

                          lottocalgal's avatar - Lottery-043.jpg
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                          Posted: April 12, 2010, 8:48 am - IP Logged

                          This is a very good topic. Most people are already in a tough way when it come to finances, and, if they're not accustomed to handling the money they have efficiently then they're surely not ready for lottery winnings. Here lies the problem. They're so elated about the win that all they can think of is pleasures as opposed to business and this is what causes the money to go very quickly.

                          In my opinion, the absolute best thing a person can do is to just take some time and let the win "soak in" for a little while. Remember, we have (180) days to claim the money and all this time will allow us to "set up camp" regarding business matters a well as getting accustomed to thinking and acting business-like. This is very important, people.

                          Let's think retirement, interest, investing, returns, and profits instead of Porsche, $1 million dollar house, every day at the mall, and things you wouldn't normally do. Yeah, it's okay to enjoy it but, do it within reason and respect to your future. Set your kids up with something and do some charity...it'll come back.

                          Money is designed mostly to take care of business, first, and then for pleasures...contrary to popular belief. There are many a people who wish they had all that money again so they could act differently. It's too late now, though. NOW is the time to plan for the future...and to GROOM one's self for it likewise. PATIENCE, DISCIPLINE, OPPORTUNITY, SYSTEM, MONEY, WISDOM, and all these good thing provide for a healthy and prospersous future.

                           

                          L.L.

                          I do agree with you LL

                          About  98%.  I wont  need to let the money "soak in".  I have SUCH meager taste and wants that even a million dollar (net)  win would last me years.  I have always said  that my dream home is around (in this market) $450-$500k and my dream car, a chrysler c class fully loaded is about 35k.  the rest would simply be put in the bank and draw the meager interest.  I saw a winner on TV go out and buy jewely worth $1300.  I though to myself why?    Im into electronics  not jewelry or clothes but would I go out and buy Bang Olufsen, no way!   Anything from FRY'S or Best Buy would be good enough for me. 

                          I was watching one of the "lottery changed" shows and saw a guy who even though he won,  banked the money and still collects second hand items and fished for his meals.  Then another guy said,  his luxury was knowing that the water and electricity is always on.  Thats how I think.  Its built into me.

                          I know people would say "you never know what you will do"  Buy I truly do.  I am such a chicken about not having the money last, that I'd rather put it in the bank and draw 1% interest rather than take the chance to hire some  sheister financial advisor who will steal it.

                          When it comes to money,  I truly have the qualities you speak of.  I even have dropped the number of lines I play in the lottery because I simply can't afford it. 

                          No, Lucky Loser,  WHEN I win.  I can say, in all honestly and sincerity, that the money ( depending on the amount) will last me forever!

                            Avatar
                            New York,
                            Panama
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                            Posted: April 12, 2010, 8:59 am - IP Logged

                            I do agree with you LL

                            About  98%.  I wont  need to let the money "soak in".  I have SUCH meager taste and wants that even a million dollar (net)  win would last me years.  I have always said  that my dream home is around (in this market) $450-$500k and my dream car, a chrysler c class fully loaded is about 35k.  the rest would simply be put in the bank and draw the meager interest.  I saw a winner on TV go out and buy jewely worth $1300.  I though to myself why?    Im into electronics  not jewelry or clothes but would I go out and buy Bang Olufsen, no way!   Anything from FRY'S or Best Buy would be good enough for me. 

                            I was watching one of the "lottery changed" shows and saw a guy who even though he won,  banked the money and still collects second hand items and fished for his meals.  Then another guy said,  his luxury was knowing that the water and electricity is always on.  Thats how I think.  Its built into me.

                            I know people would say "you never know what you will do"  Buy I truly do.  I am such a chicken about not having the money last, that I'd rather put it in the bank and draw 1% interest rather than take the chance to hire some  sheister financial advisor who will steal it.

                            When it comes to money,  I truly have the qualities you speak of.  I even have dropped the number of lines I play in the lottery because I simply can't afford it. 

                            No, Lucky Loser,  WHEN I win.  I can say, in all honestly and sincerity, that the money ( depending on the amount) will last me forever!

                            Forever is a very Long Time!!!LoL!!!

                            forget what "they" say about youWhat you say about you?...

                            Now, does it count??

                             

                             

                            *Jr$ina

                              rdgrnr's avatar - walt
                              Way back up in them dadgum hills, son!
                              United States
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                              Posted: April 12, 2010, 9:29 am - IP Logged

                              I can live simply but job one is liberty, independence and freedom in a country currently being led by those who want to limit it and making sure my family is safe.

                              That being said, disconnecting as much as possible from dependence on others for life's necessities would be my primary focus in any initial financial outlay from a jackpot win. Also, I wouldn't hesitate one second to claim my winnings because one second is actually longer than I trust the government with my money.

                              The path the current regime has us on can result in nothing less than financial collapse, a breakdown in law and order and civil unrest if not ended in the next two elections. Anyone who isn't preparing for that possible eventuality is whistling past the graveyard.

                              I would spare no expense in major outlays for building necessary structures and all things necessary to get off the grid and so forth.  You won't be able to use those millions in the bank to build anything if the dollar collapses.


                                                                           
                                                   
                                                                       

                               

                               

                               

                               

                                                                                                                                 

                              "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                          --Edmund Burke