In recent weeks there has been a lot of conversation surrounding the Powerball Lottery. What would you do with $550 Million? Most peoplesay they would first purchase a new car and a new house, take a vacation andthen take care of family and friends. Unfortunately, if you take this approach with your millions, you wonâ€™tbe a millionaire much longer.
The number oflottery winners who wind up in financial ruin, despair or both are increasinglycommon. As told in a recent Detroit Free Press article titled â€œWindfall pitfalls: Big Powerball winnersshare lessons, risks of success,â€an estimated 70 percent of people who land sudden windfalls lose that moneywithin several years. The windfall may come in the form of lottery winnings but it also includes large inheritances.
There are, however, ways to prevent thiseconomic ruin. People must plan fortheir psychological needs as well as their financial strategy. Past winners and financial planners offersome advice: make and stick to a budget, invest wisely, learn to say no and beprepared to lose friends. One pastlottery winner suggests that even before you claim your ticket, find a lawyerand a financial adviser and start building a strategy.
The same can be said for those facing an inheritance. Getting ones estate planning in place before taking posession of the funds makes good sense. Even if you aren't facing the possibility of becoming an instant millionaire getting your estate plan organized is always a good idea. Call us today and we'll make it happen. Remember, good planning is no accident.