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Why A $1 Billion Lottery Prize Could Be A Dream And A Nightmare – CBS Pittsburgh – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-01-22 07:07:12 –

Pittsburgh (KDKA) – Dreaming of finding yourself on an easy street and wanting to do it a little Friday?

Tonight’s Mega Millions jackpot is $ 970 million, and such money can carve out weekends and your life.

However, certified financial planners Carrie Coghill and Rick Applegate say we need to avoid the pitfall of having a huge number of jackpot winners.

Applegate: “Most people are wrong. At first, they say they have too many relatives.”
Cog Hill: “You talk to them, they talk to them, and so on. You have someone who could knock on the door for the wrong reason.”
Applegate: “They receive lots of random letters from strangers, informing them of their worries, their medical condition, their need for money, and many will react to it.”
Cog Hill: “Privacy is a really big issue.”

In fact, they say they will do everything they can to make it as private as possible, including disconnecting their home phone. And ask for help immediately.

Applegate: “I think they need to be attractive. Confidential and experienced advice, lawyers, accountants, financial planners.”
Cog Hill: “This creates a series of issues that may not have been addressed before, such as income tax and asset planning issues.”
Applegate: “If you have a winning ticket, lock it somewhere and get some advice before announcing that you have a winning ticket.”

Coghill and Applegate say the big-money winners who run into the biggest problems are those who think they can handle it alone.

Applegate: “It is very difficult for people to deal with their wealth so quickly.”
Cog Hill: It’s a great time to take a step back and dream a little about what you want to get from this money. “
Applegate: “Slow down. You don’t have to do this on the weekend of winning the lottery.”

Make a copy of your ticket and lock it in a safe place, such as a bank safe deposit box. And I will talk a lot.

Cog Hill: “Really discuss with other family members and other people how to tackle this.”

Plan where your money wants to go beyond taking care of your family and paying off your bills. When your plan is ready, receive your prize.

But there are also questions to answer. Is it a lump sum or a pension?

Applegate: “Take a lump sum, take money, do it.”

The lump sum will be $ 451 million after federal tax and without state tax. With the right investment, he says, you can protect your winnings and make more money.

See: What to do if you win the Mega Millions

But for those who don’t trust themselves with all their money at once or need more structure, Coghill says, “It’s really important for those who receive that pension payment.”

About 20 million annual payments for 30 years before state tax.

When it comes to splurge, you might buy a new car or a new home. It might be a good idea to prevent you from moving and finding it, it’s ok.

Coghill said: “I think the one-off fuss makes a lot of sense. We have a challenge when the fuss continues.”

That’s how many lottery winners managed to get rid of it all.

That’s why planning is so important.

Know in advance how to distribute money among your family, which charity you want to support, and plan your assets so that you can guarantee what your money will be if you die.

And if you don’t want to go beyond your comfort, Applegate says: “I just pass my interests to someone who represents me. In other words, I answer the phone, receive an email, or give it to someone who can handle this for you, your admin. I won’t hand it over. “

Set up a family office or foundation and hire someone to run it. You set guidelines and they literally handle daily requests coming from all over the world.

Why A $1 Billion Lottery Prize Could Be A Dream And A Nightmare – CBS Pittsburgh Source link Why A $1 Billion Lottery Prize Could Be A Dream And A Nightmare – CBS Pittsburgh

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