What would you do with a windfall? It’s a question I’ve read or heard a lot lately. Considering the Mega Millions jackpot has now grown to $1.02 billion, it’s safe to say most of us have thought about what it would be like to win.
While winning the lottery is far from likely (odds this week are 1 in 303 million), it’s never a bad idea to consider what your future may bring. After all, a windfall isn't limited to lottery winnings; inheritance, property sales, employee stock options, business sales, investment returns, and gifts can also qualify.
Here are some tips to keep in mind, should you come into a windfall:
- Assemble Your Team - When facing a windfall of any size, it’s wise to secure the services of an attorney and an accountant who specialize in tax law. They can help manage your newfound wealth while your financial professional (that's me) works with you to create a long-term strategy.
- Mum’s the Word - It's unfortunate, but there are those who would love to separate you from your money by any means possible. You can avoid some of these scammers by only discussing your finances with those you trust.
- Plan to Give - As word of your luck spreads, you may get financial requests from friends, family, or charities. Speak with your financial team about gifting strategies or how much you can donate annually. You may even want to consider forming your own charitable foundation.
Are you actually likely to win the lottery? No. But it never hurts to be prepared for a lucky day.