A 20-year-old Florida man became an instant multi-millionaire recently when he won the $450 million Mega Millions jackpot.
He will receive $281,874,999, according to his lawyers statement.
“There are 2 kinds of lottery winners: Those who grow their wealth, invest in the future, and help people and organizations dear to them, with enough to pass on to heirs, and those who blow it and lose it all within a few years.”
Indeed, many people who come into a sudden windfall of cash, an inheritance, a large bonus, soon return to the same financial mess, if not worse, than the mess they were in before.
Why do 70% of lottery winners go broke?
Here are some reasons why:
1. Everyone wants a piece of the action: charities, financial advisors, total strangers.
2. They give away far too much to “close” friends and family who present all their problems.
3. They fall for investment scams or pitches, without doing due diligence:
Invest in an oil well
Build a factory
Run for political office!! 😜
4. They go on a spending spree; changing their lifestyle overnight thinking the money can never finish.
If you receive a windfall, you need a "financial triad” to act as a sounding board.
A lawyer
A tax consultant
A financial adviser
You need to build your knowledge.
No comments:
Post a Comment