Winning the lottery can be very exciting, but it can also be very overwhelming. There are a lot of people who win the lottery and end up having little to no money left within a few years because they blow it all on frivolous things. If you have recently won the lottery, it is important to meet with a financial planning attorney right away. The following guide provides you with a few key things you need to consider when planning for your future after you win the lottery.
Discuss with Your Attorney the True Value of the Money You Have Won
Many people assume that the prize amount is the amount of money that they will get when everything is said and done. That is not the case at all. Taxes must be paid on the winnings. The attorney will be able to help you determine how much the taxes are going to be and if you will have to pay state, federal, and local taxes on it or not. This will allow you to get a better idea for how much money you truly won.
Determine What Purchases You Really Need to Make
Winning the lottery allows you to have the money to purchase just about anything you could possibly want, especially if you have won a large sum of money. It is important to consider what items you really need to purchase versus the items you simply want to purchase. Just because you won a few million dollars does not mean that you now need to live in a mansion. The financial planning attorney will be able to help you determine how much you should pay for a home so that you can afford it for years to come. You need to consider what the personal property taxes will be for the home, as well as what the utility bills will be for the house. It does you no good to have a huge house if you cannot keep the lights on in it.
Determine How to Properly Save the Money
You want to be sure that you do not make the mistake of spending every dollar you have won within a matter of a few years. Properly saving and investing the money will be crucial to your financial success. The attorney will be able to provide you with a few different investments and saving options to consider so that you can still have money to rely on in the years to come.
When you meet with the attorney be open-minded and listen to the suggestions that they give you. They will have experience with large sums of money and more than likely know the pitfalls that you need to avoid in order to ensure your money lasts as long as it possibly can. For more help, talk with a company like Acton & Snyder, LLP.