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

Topic closed. 36 replies. Last post 11 months ago by KY Floyd.

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Posted: February 8, 2016, 9:44 am - IP Logged

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) don't respect lottery winners as much as successful businessmen that came into wealth from hard work. This lack of respect leads to resentment making some people to think, it is not far that it happened to someone I know and not to me! I deserve this not him/her! That my friends is where the drama starts.

I have it all thought out all that is left is one small thing, all I have to do is winHyper

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    Posted: February 8, 2016, 9:46 am - IP Logged

    Protect the principal from me wasting it or foolish investments.

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

      Coin Toss's avatar - shape barbed.jpg
      Zeta Reticuli Star System
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      Posted: February 8, 2016, 10:55 am - IP Logged

      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.

      What?

      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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        Posted: February 8, 2016, 11:43 am - IP Logged

        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 have all sued each other over money. Protect yourself.

         

        A GOOD CPA will help keep Uncle Sam and his greedy little state cousins at bay. The initial tax you pay when you collect your winnings is far from the end. Want to give your mom a million dollars? Get ready to pay more taxes. A GOOD CPA will minimize the tax burden. Protect yourself.

         

        A financial planner isn't someone you take to the mall with you to help you spend your money. This is probably the most difficult to find but a GOOD financial planner will help you to make sound investments. It is important to remember that just because you have money that doesn't automatically make you an investor. A bad investment can cost you big. Plus, when you win the lottery suddenly EVERYONE is your financial planner. EVERYONE knows something you should invest in and wants to tell you how you should use your money but NONE of them know what they are talking about. A GOOD financial planner can help you navigate through the BS. Think of this this way...everyone knows the stories of people who have had major windfalls and lost it all. Imagine a 35 year old who ends up taking home a lump sum of 10 million dollars. Without proper financial planning it is easy to conceive that person could lose all of that money before they turn 60. Protect yourself.

         

        The bottom line is, if rich people surround themselves with a team and their advise to new millionaires is get a good team, you should probably listen.

          Teddi's avatar - Lottery-008.jpg

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          Posted: February 8, 2016, 1:45 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.

          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 laws when it comes to dealing with sizable fortunes. You'd be in a position where you don't know what you don't know, and that's bad. If doing something you want to do has you paying $10 in taxes, an expert might be able to tell you how to do the same thing while only paying $5 in taxes. He may charge you $2 for the advice, but so what? you're still ahead by $3. 

          I personally believe there are only two really stupid things to do when you come into a large sum of money: a) Not consulting with a financial expert and b) allowing a financial expert complete charge of your money with no oversight. Hiring an expert doesn't mean you trust them. They should be there to advise you, not control your money. You still have to watch them and your money. No one should be able to transfer funds from your account but you. No one should pay your bills but you. Most the people who get ripped off are the people who give up their control or were too trusting. Sorry to say it but that's on them.

            LiveInGreenBay's avatar - driver
            Green Bay
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            Posted: February 8, 2016, 5:36 pm - IP Logged

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

            Never give up.  Banana

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              LA Ca.
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              Posted: February 8, 2016, 5:59 pm - IP Logged

              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....

                ArizonaDream's avatar - Lottery-009.jpg

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                Posted: February 8, 2016, 7:57 pm - IP Logged

                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....

                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.

                  mrbg's avatar - NofVcy
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                  Posted: February 8, 2016, 8:02 pm - IP Logged

                  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.

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                    Posted: February 8, 2016, 8:14 pm - IP Logged

                    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, Edwards sold off the stocks and bonds that Gibbs invested on his behalf.

                     

                    On Tuesday, his daughter, Tiffani Lee Edwards, said that her father had left her with nothing - not even a life insurance policy.

                    'There is NO MONEY anywhere!!!!' she wrote on Facebook.

                    Enough said.



                    People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

                      ArizonaDream's avatar - Lottery-009.jpg

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                      Posted: February 8, 2016, 8:31 pm - IP Logged

                      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.

                      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.

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                        Posted: February 8, 2016, 8:50 pm - IP Logged

                        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.

                        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.

                          ArizonaDream's avatar - Lottery-009.jpg

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                          Posted: February 8, 2016, 9:04 pm - IP Logged

                          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, Edwards sold off the stocks and bonds that Gibbs invested on his behalf.

                           

                          On Tuesday, his daughter, Tiffani Lee Edwards, said that her father had left her with nothing - not even a life insurance policy.

                          'There is NO MONEY anywhere!!!!' she wrote on Facebook.

                          Enough said.



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

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                            Arizona
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                            Posted: February 8, 2016, 10:01 pm - IP Logged

                            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.

                            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.

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                              The Windy City
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                              Posted: February 8, 2016, 10:17 pm - IP Logged

                              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.

                              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.

                              - Wanna win at least a couple commas