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Does A Lottery Winner Really Need A Financial Expert?

Topic closed. 31 replies. Last post 6 years ago by Viber.

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sully16's avatar - sharan
Ringleader
Michigan
United States
Member #81740
October 28, 2009
40340 Posts
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Posted: December 20, 2010, 8:57 am - IP Logged

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.

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"

    Avatar
    Kentucky
    United States
    Member #32652
    February 14, 2006
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    Posted: December 20, 2010, 10:08 am - IP Logged

    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't trust one of those H&R Block tax preparers at Wal Mart who probably has 4 hours of training using the same tax PC program I could buy for 40 bucks doing my multi million dollar 1040 form. 

    A jackpot winner could fill out their own tax form but since they'll owe the IRS another 8 or 9 percent on their winnings, it would be wiser to pay someone with experience.

      RJOh's avatar - chipmunk
      mid-Ohio
      United States
      Member #9
      March 24, 2001
      19820 Posts
      Online
      Posted: December 20, 2010, 10:15 am - IP Logged

      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't trust one of those H&R Block tax preparers at Wal Mart who probably has 4 hours of training using the same tax PC program I could buy for 40 bucks doing my multi million dollar 1040 form. 

      A jackpot winner could fill out their own tax form but since they'll owe the IRS another 8 or 9 percent on their winnings, it would be wiser to pay someone with experience.

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

       * you don't need to buy more tickets, just buy a winning ticket * 
         
                   Evil Looking       

        Littleoldlady's avatar - basket
        Clarksville
        United States
        Member #487
        July 15, 2002
        17638 Posts
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        Posted: December 20, 2010, 10:18 am - IP Logged

        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 detective to check them out first before I trusted all of my millions to someone whether I know them or not. 

        If you know your number is going to hit, have patience and then KILL IT!

        You never know when you will get another hit.

          savagegoose's avatar - ProfilePho
          adelaide sa
          Australia
          Member #37136
          April 11, 2006
          3300 Posts
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          Posted: December 20, 2010, 2:48 pm - IP Logged

          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?

          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.

          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

            ttech10's avatar - blobdude
            Texas
            United States
            Member #92330
            June 5, 2010
            887 Posts
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            Posted: December 22, 2010, 8:36 pm - IP Logged

            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 detective to check them out first before I trusted all of my millions to someone whether I know them or not. 

            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 family separate, but I could at least get some tips from her.

             

            But yea, definitely verify the person and their credentials before you just give them control over your money. It's also better if you find an accountant/financial planner before you've turned in the ticket so that you're just an average person (say you just moved to town and looking for a local accountant/planner if you need to).

              Avatar
              Milwaukee, WI
              United States
              Member #3131
              December 27, 2003
              665 Posts
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              Posted: December 23, 2010, 6:56 am - IP Logged

              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 start with the max tax, 35% fed and whatever is in your state and find a few deductions to reduce it.

              MarkP

                savagegoose's avatar - ProfilePho
                adelaide sa
                Australia
                Member #37136
                April 11, 2006
                3300 Posts
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                Posted: December 23, 2010, 9:11 am - IP Logged

                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 start with the max tax, 35% fed and whatever is in your state and find a few deductions to reduce it.

                MarkP

                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.

                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

                  joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

                  United States
                  Member #32537
                  February 12, 2006
                  698 Posts
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                  Posted: December 23, 2010, 11:05 am - IP Logged

                  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 if you must go to vegas, for god sakes, do it same tax year your winnings are being tax'ed,

                  and have full deduction for the loss's,   

                  their no point in gambling a ton of money away atfer that

                   

                  if i ever won mm or pb, i would spend like a million bucks on lotto tickets trying to win a 2nd one, if the irs wants proof , i have a stack of losers the size of a small house they can go thro LOL, all them poor tree's rofl

                  anyway its better to just get a ton of Books, IF YOU WIN, Buy a ton of investment books, etc, TEACH your self

                   

                  like right now and next year, max tax rate for dividend income, aka, companys that pay your share holders dividend income, have a max tax rate of 15%, Ya really, compared to 35% tax rate on all other income, its a Rich persons low tax rate LOL, thank you  republicans,

                   

                  so do your own research, find a company that has around 5 to 10% dividend for current stock price, and Buy that sucker,  all future income form it, is tax'ed much Lower, just hope to god dems Don't defeat the republicans in the future and tax your Dividend income like everthing else

                   

                  also a tip, if you are in a state that tax's dividend income, its Easy as a simple side step to avoid your state's tax's on Dividend income,online a job or any other income, dividend payments are simple ownership of the stock

                  set up a trust, again do your own research,

                  , don't just take my word for it,  set it up  in a other state THAT does not tax dividend income,  and Bam,  move the stocks into that trust, and let the trust bank account collect dividend income form the stocks,  thus avoiding your state tax on dividend money ,   the rich Really do play by a Whole other set of rules,

                  owning stocks that pay you, as a % of ownership, you  get share of their profits, their only stocks worth having btw, makes you into the ownership class, and they Don't Put up with the outrageous 35% tax rate on their money

                   

                  o and before you dems, or tax the rich people run in, beware,  dividend income, SHOULD never be tax'ed, know why?, THE GOVT already tax's the company PROFITS, then they  balls to tax dividend payments to you also, its bloody double tax before you ever get the money, its a outrage, we went to war over double tax's btw, if it was not for republicans  must profits by companys would be tax'ed into they MOVED outside the nation

                   

                  know how the dems don't think its a double tax, cease some dividend income, comes form outside the nation!, but if you own a usa company stock that pays you a dividend, to bad, they tax the company, then you ,  <snip> the dems and their double tax's, and tax the rich mindset,

                   

                  This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

                    socalgal's avatar - bobblecars3
                    California
                    United States
                    Member #103560
                    January 3, 2011
                    56 Posts
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                    Posted: January 3, 2011, 10:42 pm - IP Logged

                    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 take some financial management classes.  You can go to a community college or adult education.  So, if you do hire an advisor, at least you will understand some of the lingo.  You won't have the wool pulled over your eyes.

                    Right now, I've been emailing financial advisors and attorneys.  I ask very specific questions.  Almost all of them reply.  But the difference is "how" they reply.  Most are generic and tell me to call them for a "free consultation".  That means they will try to sell their services during the "free" time without answering any of your questions.

                    A few have replied and actually answered my questions, plus sent more info.  Then they sent a follow up email to make sure I got their first email and attachments.

                    So when I do win the lottery (cross fingers) I know who I will be talking to about managing my winnings. :)

                      dk1421's avatar - Lottery-024.jpg
                      North Carolina
                      United States
                      Member #64582
                      September 1, 2008
                      347 Posts
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                      Posted: January 4, 2011, 9:53 am - IP Logged

                      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/problems/etc. After a year or two, it would probably only be twice a year.

                      Yes, it's more money going out the door, but I think for peace of mind, it would be worth it.

                      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!

                      "Don't be a schmuck, always take the cash." -Coin Toss

                        Guru101's avatar - rw6jhh
                        Indiana
                        United States
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                        January 7, 2007
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                        Posted: January 4, 2011, 10:54 am - IP Logged

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

                        Gonna win.Big Smile

                          Mamma28z's avatar - phone
                          Lower MI
                          United States
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                          July 22, 2010
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                          Posted: January 4, 2011, 1:55 pm - IP Logged

                          * 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...

                            dk1421's avatar - Lottery-024.jpg
                            North Carolina
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                            Member #64582
                            September 1, 2008
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                            Posted: January 4, 2011, 9:47 pm - IP Logged

                            * 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...

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

                            "Don't be a schmuck, always take the cash." -Coin Toss

                              Avatar
                              New York,
                              Panama
                              Member #73078
                              April 4, 2009
                              3490 Posts
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                              Posted: January 4, 2011, 9:56 pm - IP Logged

                              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.

                              Agreed!!Patriot

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

                              Now, does it count??

                               

                               

                              *Jr$ina