What should you do if you hit the jackpot? Yes the odds are long but thinking about winning has been cited by many as a stress reducer. Here’s a list of the steps to take before and after you claim your prize:
- Stop. Think. Breathe.
- Resist the almost insurmountable urge to call anybody to share the news. Share with immediate family members if you must and insist that they keep it quiet until you are prepared to share the news with everyone.
- Sign the ticket and put it in a secure place. Do not turn it in until you’re prepared to deal with the publicity and everything that comes with it.
- Call your financial planner, attorney and accountant to decide on a plan to protect, preserve and invest your money. Also decide how to handle the inevitable solicitations you’ll get from family members, friends, charities and sadly, the scammers.
- Once you’ve worked out a plan, it’s time to turn in your ticket. Most lottery commissions will want to publicize your win. Your anonymity will be short-lived once you’ve claimed your prize—which is why it is so important to be preparedbefore you cash in your ticket.
- Change your contact information. Share your new contact information only with close friends and family. Tell them not to share it with anyone without asking you first.
- Get away – run actually. As soon as you deposit your winnings at the bank you will be barraged with requests for meetings by a banker. Resist the temptation to comply as banks a littered with internal conflict of interest. Take a vacation 1st!! Use this time away to think about some of the issues that could arise from your windfall. Avoid making big decisions too hastily, especially on matters which will impact loved ones.
- Assemble a team of advisers. You might have a lawyer, accountant and financial advisor, but you probably need to ask yourself a few questions on your current advisory team. For example, your financial advisor might have sold you a mortgage or investments, are they aware and licensed to deal with the complex opportunities and issues created by your new wealth? Your lawyer might be very good with real estate transactions but not so much with estate planning. Lastly, your accountant maybe comfortable preparing this year’s tax return but is she/he knowledgeable and capable of advising you on a family trust or the intricacies of owning foreign property?
Interview many different types of advisors. If your current advisor doesn’t give you great service and advice it’s time for a change. Actually, whether you just won the lottery or not you shouldn’t ever have to put up with poor service. Good advisors can protect your fortune, prevent irreversible financial mistakes, and, generally, save you many headaches and possibly millions of dollars.
- Avoid sudden lifestyle changes. Know yourself and assume that you will change somewhat as a new millionaire. Don’t underestimate family support and friendships. This maybe a good time to stay close to that support group rather than escape to a new one.
- Don’t quit your day job yet. If you have a job you enjoy, you may want to take a leave of absence to think things through. You may decide that you want or need to continue to work after your win.
- Prepare a short, medium and long-term plan. Your plan should cover physical and mental health first and foremost. Outline what you’ll need to do health-wise and financially during the first few weeks and months as you start your new life.
- Decide on a gifting strategy. At some point you will need to draw a line in the sand to keep from giving too much of your money away. You should come up with a justification or explanation to offer friends, family and charities when you decline their requests for a hand-out.
If you need a second opinion or a financial plan call us at 813 964 7100 or visit www.MintcoFiancial.com
Mintco Financial Team of Independent Advisors: www.MintcoFinancial.com
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