Thursday, November 29, 2012
While the odds were astronomical that a person would actually win the Powerball lottery prize of $550 Million, there were several winners in last night's lottery. So, if you were one of these extraordinarily lucky individuals it is important to get a clear grasp of the fortune that you were just bestowed with and the knowledge that you now need to manage the million dollar windfall. Many people have different opinions of what a person should do to manage the lottery prize.
At least, most (if not all) professionals believe that a winner should seek the counsel of a CPA, a CFP, an estate planning attorney, and a tax attorney to help the winner manage the winnings. On this tangent, some argue the winner should seek the advice of brokerage-house/steward that can handle investing the winning, such as Fidelity Investments. Others disagree and argue that a person should act conservatively with the winnings. One argued that a person should put 100% of the winnings in U.S. Treasury Bonds. That person concluded that a person could simply live off the interest; there was no need to risk the winnings especially if the winner could live comfortably for the rest of their lives. Regardless, of the winner's personal decision, all professionals urge the winner to think financially smart and not to squander the winnings. The last thing most people want to hear is how the lottery ruined another life.
See TheStreet Staff, What To Do If You Win the $550 Million Powerball Jackpot, The Street, Nov. 28, 2012
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.