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

Topic closed. 36 replies. Last post 10 months ago by KY Floyd.

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LiveInGreenBay's avatar - driver
Green Bay
United States
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October 15, 2015
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Posted: February 7, 2016, 2:03 pm - IP Logged

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.

Never give up.  Banana

    sookie's avatar - nw femalewiz.jpg

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    May 17, 2013
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    Posted: February 7, 2016, 2:16 pm - IP Logged

    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.

      ArizonaDream's avatar - Lottery-009.jpg

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      October 10, 2015
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      Posted: February 7, 2016, 2:23 pm - IP Logged

      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.

        savagegoose's avatar - ProfilePho
        adelaide sa
        Australia
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        April 11, 2006
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        Posted: February 7, 2016, 2:23 pm - IP Logged

        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 the business , you collect a wage,. maybe some family members need a job,  they can get a job in your company.  you get the idea.  it all depends on how much work you want to do  prob the most important time will be selecting your people. if you spend a week deciding.  you can expect poor results, maybe 6 months  researching who you should trust before geting a team to collect the money, maybe the only 6 months work you ever need to do again.

        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

          TheMeatman2005's avatar - lightening
          Brooklyn, NY
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          October 29, 2015
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          Posted: February 7, 2016, 3:53 pm - IP Logged

          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.

          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 send you to the poor house.

          Nothing says that you have to allow lawyers and a financial team to rule over your money, but it would be wise to have counsel present when making decisions involving your money.

          The Meatman

          “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

          Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

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            Happy California
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            Posted: February 7, 2016, 3:59 pm - IP Logged

             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.

            No Pity!

             I've been rich and I've been poor. Believe me, rich is better. 

             Attributed to Joe E. Lewis and others

              ArizonaDream's avatar - Lottery-009.jpg

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              Posted: February 7, 2016, 4:04 pm - IP Logged

               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.

              No Pity!

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

                ArizonaDream's avatar - Lottery-009.jpg

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                Posted: February 7, 2016, 5:14 pm - IP Logged

                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 the business , you collect a wage,. maybe some family members need a job,  they can get a job in your company.  you get the idea.  it all depends on how much work you want to do  prob the most important time will be selecting your people. if you spend a week deciding.  you can expect poor results, maybe 6 months  researching who you should trust before geting a team to collect the money, maybe the only 6 months work you ever need to do again.

                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.

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                  London
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                  March 24, 2013
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                  Posted: February 7, 2016, 5:22 pm - IP Logged

                  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...

                  2016 Won/Lost

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                  UK Lotto / Spent: £4 / Won: £0 / Total: -£4

                  2016 Total: -£24

                  Jan: -£22 Feb: £0 ~ Mar: £0 ~ April: £0 ~ May: £0 ~ June: £0 ~ July: £2

                   

                  EuroMillions = £2 Line / Played: x11 [old price] 

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                    lulu1feather's avatar - 2uehclf
                    Oregon
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                    Posted: February 7, 2016, 5:27 pm - IP Logged

                    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

                      Coin Toss's avatar - shape barbed.jpg
                      Zeta Reticuli Star System
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                      Posted: February 7, 2016, 6:15 pm - IP Logged

                      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.

                      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.

                      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.

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                        Tulsa
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                        Posted: February 7, 2016, 6:20 pm - IP Logged
                        1. Pay off all your debts.
                        2. Give what money you intended to give away to the people and organizations and set up trust accounts for your kids.
                        3. Take what you have been earning each year prior to winning and double it.
                        4. Take that amount per year out and live off of that. 
                        5. Use any accrued interest from your winnings to make car or other luxury purchases or pay for vacations.
                        6. If you have 10 million in the bank and can't live a comfortable full life then you are a fool.
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                          Portland, OR
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                          Posted: February 7, 2016, 9:41 pm - IP Logged

                          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 for the rest of your life.  In 12 months a similar payment will come.

                          "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                                    Robert Greene

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                            Lavender Rocket

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                            Posted: February 8, 2016, 3:47 am - IP Logged
                            1. Pay off all your debts.
                            2. Give what money you intended to give away to the people and organizations and set up trust accounts for your kids.
                            3. Take what you have been earning each year prior to winning and double it.
                            4. Take that amount per year out and live off of that. 
                            5. Use any accrued interest from your winnings to make car or other luxury purchases or pay for vacations.
                            6. If you have 10 million in the bank and can't live a comfortable full life then you are a fool.
                            1.  dont need an esq or f.a. to pay off debts.
                            2.  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.
                            3.  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.
                            4. dont need anyone to withdraw money and put into separate account for livng expenses for year.  needed staff count = still 1 magician
                            5. accrued interest from winnings for car/big purchases/vaca = 1 accountant.  needed staff count update = 1 magician, 1 accountant
                            6. if not comfortable then I need to hire a fool, aka jester. 

                            So my needed staff:

                            1 magician

                            1 accountant

                            1 jester - and remember - an unemployed jester is no man's fool.

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                              Posted: February 8, 2016, 8:44 am - IP Logged

                              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.