If you became an overnight millionaire – you won the jackpot – you’d probably be too excited to think about getting financial advice.
Most of us don’t have an accountant or a financial adviser and the vast majority of lottery winners are in so-called blue and white collar roles, so are unlikely to be paying for that kind of service until they win the lottery.
Not surprisingly, winners normally want to pay off a mortgage and look after their families’ finances. But to do this, Michael Minter from Mintco Financial recommends taking a breather and making a financial plan. Next, we’ve got some helpful tips.
Here’s a few tips that can help when you’ve won a big sum of money:
1. Limit Big Spending
Limit your sending of large amounts to those things that will almost inevitably increase in value: more buy-to-let property or investments into high income producing shares or bonds. These are the kind of assets that a good financial adviser will be able to seek out for you. The income from rent and interest alone can be enough to lead a comfortable existence so that you don’t make too many dents in that nest egg.
2. High-interest Accounts
Think about how you can make more money from this god-send of a fortune. Get advice on the best high-interest accounts for millionaires and the sort of tax wrappers that will mitigate the money you lose in taxation.
Lottery winners need to diversify their investment portfolio, to mitigate potential risk. Imagine you’d won the lottery and put all your money into property before the 2007-2008 financial crisis, when the housing market collapsed. Make sure you’ve got a good mix of safe and risky investments, with the balance towards the safe side of things, so you don’t end up with worthless investments.
4. Regular Meetings
Once you’ve made a plan you should keep meeting with your financial adviser to go over how your investments are working for you and to ensure your financial plan will safeguard your fortune for you and your family. It’s easy to get lax when you know you have so much money but it pays to be vigilant.
Mintco financial Team of Independent Financial Advisors can help to put a financial plan to protect your lotto winnings.
We have been helping all people of different walks and phases of life.
Call us 813-964-7100 or visit www.MintcoFinancial.com