The number of lottery winners who wind up in financial ruin, despair or both are increasingly common. As told in a recent Detroit Free Press article titled “Windfall pitfalls: Big Powerball winners share lessons, risks of success,” an estimated 70 percent of people who land sudden windfalls lose that money within several years. The windfall may come in the form of lottery winnings but it also includes large inheritances.
There are, however, ways to prevent this economic ruin. People must plan for their psychological needs as well as their financial strategy. Past winners and financial planners offer some advice: make and stick to a budget, invest wisely, learn to say no and be prepared to lose friends. One past lottery winner suggests that even before you claim your ticket, find a lawyer and a financial adviser and start building a strategy.
The same can be said for those facing an inheritance. Getting ones estate planning in place before taking posession of the funds makes good sense. Even if you aren't facing the possibility of becoming an instant millionaire getting your estate plan organized is always a good idea. Call us today and we'll make it happen. Remember, good planning is no accident.