![]() ![]() Names can be found on, the nationwide lawyers’ directory that you can search by location and area of practice, and on the Web site of the American College of Trust and Estate Counsel, a group of trust and estate lawyers. If you live in a small community and don't want lawyers there to know your business, seek out a professional in the nearest large city. For attorneys and insurance agents, see whether there have been any complaints filed with state disciplinary authorities. Check broker records at the Financial Industry Regulatory Authority. Rather than signing on to a group of advisors that someone else has put together, he recommends handpicking your own lawyer, accountant and investment advisor, and requiring them to work together.Ĭarefully vet each advisor before discussing your situation. In situations like this it's very hard to know "who's trying to help you and who's trying to use you," says Ely. Assemble a team of legal and financial advisers. When you invest a dollar, you can’t be sure whether it will grow or shrink.Ĭut your expenses, boost your net worth and secure your financial future in a day.ĥ. When you’ve paid down a dollar of debt, that’s a dollar you no longer owe. With today’s abysmal yields on relatively secure investments like CDs and Treasurys, that's especially true. Whether it is credit card debt or a mortgage, your rate of return equals the interest rate on the loan. As I wrote in my post, " The Best Investment Advice I Ever Received," there is no better investment than paying off debts. If you need a new car, buy a budget model for now.Ĥ. For example, you could rent a house in the neighborhood where you were thinking of moving, before you make any commitments, says Guerdon Ely, a financial planner in Chico, Calif. Meanwhile, set aside a fixed amount for splurges -it's only natural to want to celebrate your windfall. For the first six months after you win the lottery, don't do anything drastic, like quitting your job, buying a home in Europe, trading up for a luxury car or building a collection of Birkin handbags. During this time, ask advisors to crunch the numbers and help you decide which type of payment suits you best.ģ. You have 60 days from the time you claim your lottery prize to weigh the pros and cons. In such situations people typically buy life insurance policies to cover the estate tax bill. (Powerball also says in its FAQs that it will cash out an annuity prize for an estate.) You will want to compare the effective yield of the annuity with what you could earn by taking the money as a lump sum, paying the taxes and investing the proceeds.Īnother issue to consider is whether taking an annuity will leave your family without the cash they need to pay estate tax if you die before the 30-year period is up, Kirsh says. But this payout form has other drawbacks, Kirsh notes. People who have trouble controlling their spending might prefer the discipline of receiving the money as an annuity. With an annuity, you are taxed only as you receive the payments. With a lump sum payment, you must immediately pay tax on the entire amount, says Michael A. You have the choice between taking the prize money all at once or having it paid out in 30 installments over 29 years in the form of an annuity. See a tax pro before you cash the ticket. So find out what the state rules are and plot a course.Ģ. ![]() In South Carolina, it's also possible to remain anonymous.ĭepending on where you bought the ticket, prize winners have between 180 days and one year from the date of the drawing to claim their prize. A client of Gamel's who won a past lottery did that, and had a lawyer claim the prize on behalf of of the trust. Gamel, a CPA with Pillar Financial Advisors in Waltham, MA. ![]() Elsewhere it may be possible to maintain your anonymity by setting up a trust or limited liability company to receive the winnings, says Beth C. In New York, for example, winners' names are a public record. So check state rules to see whether you can dodge them all by remaining anonymous. Once people know you're suddenly wealthy, you'll be badgered by requests for handouts from everyone from charities to long-lost friends and relatives-not to mention all the financial "experts" who will be vying for your business. Remain anonymous if your state rules permit it. ![]()
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