While there are many stories on the Internet about people who have won the lottery, then lost everything within a few years, there are more success stories. The problem for most people is finding the success stories and following the steps that are provided in these lottery winners stories. For most people, winning the lottery is at first a shock, and then something that we are not really prepared for. By following a few simple steps that have helped successful lottery winners succeed, you can enjoy your wins without worrying about losing everything.
When you win a substantial amount of money playing the lottery, it is important to have a plan before you starting calling friends and relatives or collect the money. The average lottery winner takes from 4 day to two weeks to claim their winnings. It is key that you have a good support network in place to advise you before you do anything. Your support network should include an Accountant, a Financial Advisor, and a Lawyer who has experience with this type of windfall. It will also be important that you do not use the same person to play all of these roles.
If you have relatives or friends who have come into a windfall and used this type of team, they will be able to tell you about their experiences. If you do not know these types of professionals, it will be a good idea to go to a major accounting firm, law firm, and brokerage to discuss your options and get proposals from each professional. References are a must when you are going to place your complete fortune and trust in these individuals. It will be important for you to check references and the background of the company.
While the Lottery is designated to post your name and hometown, they will not give out your picture or personal information. However, you will want to change your phone number before your wins are collected. Many winners have their lawyer representing them at the Lottery Office to collect winnings. In this way, you can avoid having your photo made public.
Your lawyer will protect you from people who want to "borrow" money or have a "must see" investment opportunity. Before investing money in anything, you will want to see the advice of the professionals who are in your network. Your wins will be transfer by wire to your bank account. Many people find that opening a special account for their winnings is a good way to keep track of expenses and spending related to your winnings.
When you receive your winsnings, taxes will be taken out as well as any money owed such as past child support, back taxes, liens, school loans, etc. The money that you receive will be yours to invest wisely or spend. You will have the choice of getting your wins in a lump sum, as about 75% of winners do, or in payments made over a period of years. There are some great positives to getting annual payments even though the interest paid on the money is low.
Many winners keep their jobs until they have figured out what they are going to do with their winnings. Instead of quitting your job, take some vacation time or a leave to decide what kind of future you want and what you want to do with your time. Successful winners usually have a dream career that they would never be able to afford or do if they did not have this kind of money. These individuals are often found donating time to their favorite causes, working in very low-paying jobs that they love, or going to school to get a degree that they thought would never be within their reach.
Winning the lottery does not mean that a person's personality changes. If you are the type of person that lives paycheck to paycheck and has a difficult time saving money, then getting a lump sum of millions of dollars is not going to change this habit. It will be better to get the annual payout. However, if you have always saved money and spend it wisely, your investment team will be able to guide you to the wises investment choices for your future.
There are some significant things that a financial advisor can help you with. Setting up a trust that qualifies as tax exempt or tax deferred will save you money and allow you to help others. In addition, they will help you with making wise investment choices. It will be important that you feel comfortable with this professional and take time to think about any investment opportunities.
Another thing that many people do not think about is the important of creating a will or living trust, and keeping it up to date. Your Will should include a succession of rights to the winnings as well as any provision for your other trusts or investments. Successful winners often include a provision that requires heirs to get some education on how to manage large sums of money and understand how to work with your support team.
More people are winning the lottery than ever before, and it is important that anyone who plays the lottery be ready to win. Having a plan in place and taking some time to make sure that your investments and winnings are secure, will give you the long-term financial freedom that you want. Lottery winners stories will vary, but successful winners have one thing in common. They create a strong support network of experienced and knowledgeable professionals before they collect their money, and they do not make unwise investments.
Your new car, homes, boats, etc., will all be investments. It is important to take the time to consider how much money you want to spend on these investments. You will also want to take you time when deciding to invest money. Weighing the pros and cons of an investment and talking to your support team, will help you to make wise investments that will have long-term disputes. You will also find it very helpful to reach about lottery winners stories of success and develop your own criteria for making your money work for you and your family for the rest of your life.