So let’s say you are the sole winner of Wednesday night’s Powerball jackpot and walk away with what’s left of the $500 million after Uncle Sam gets his share. What do you do next? Buy a fleet of expensive foreign cars? Get that house in the Hamptons you always wanted? Give all your favorite relatives and friends a piece of the pie?
That may be the fantasy people have when they ponder riches beyond their wildest dreams, before reality sets in. But financial experts advise a more reasoned approach with strategies to ensure you have enough of your riches to maintain a high standard of living.
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A financial planner who specializes in helping lottery winners keep their new-found wealth told Cincinnati’s WXYZ
about strategies to keep winners in the green.
- Don’t give away high amounts of money to friends and families. If you give money away, odds are the recipient will have to pay taxes. If you want to share with others, keep things in your name.
- Before buying a mega mansion, figure out the carrying costs of keeping the house afloat. Yeah, you might be able to buy a $10 million palace, but how much will it cost you in taxes and upkeep the next 20-30 years.
- Don’t invest in risky ventures. Find a good attorney and financial planner with a track record and listen to their advice. That restaurant you always wanted to own might sound good to you, but pros might tell you otherwise.
- Maybe you don’t want to quit that job so fast. So don’t burn any bridges in case fate steps in and you lose the money you won. Take some time and see if staying at a job makes sense for you.
- Let reality pervade your thoughts. The money may seem unlimited, but it’s not. Live a little, but save a lot.
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