If I win the lottery or become a huge amount of money to, say, 5 million dollars, as well. How can I find a reliable Financial Officer; I've heard so many horror stories of people wasting and loss of lottery profits to mismanagement. I think it is fair to deny someone the use of controlled large sums of money. * Serious answers only please.

 

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  • The best thing to do is contact a lawyer at a reputable law firm that specializes in trust and estate planning. This lawyer will be able to refer you to a reputable family office. Many wealth people have their money managed through a family office. So between your attorney and family office, they will collaborate to understand your financial situation, risk tolerance and investment goals in order to develop a customized financial plan tailored to your needs.

  • If you come across 5 million dollars or more, you should invest it in an account that guarantees a certain percent. You may not make a whole lot of money, but it’s safe and will keep up with inflation. Moreover, you could invest it in such a way that you have a chance to make a good amount of interest off your money, but this comes with risk. In today’s economy you should play it safe. Five million is plenty, take the guaranteed rate, don’t be greedy. Banks have guaranteed interest rate accounts; You need to do some research and find which offers the best interest rate for you. It varies.

  • This comes up in conversations once in a while. Of course it is part dreaming and part wishful thinking.
    I would get a reference from someone who already has a finacial manager. In my case, the person my parents have been using for years has been trust worthy and dependable. I would use him for my investments.
    With the amount of money I am keeping for my own spending, I would have a dear friend, that I trust with my life, who would manage my day to day funds. He already knows I will need him for this role. He is very investment saavy, on the thrifty side, and will help stop me from wasting my money on things like boats and cars (I live in NYC). He will also be able to help me work out what family members will be helped in what way.
    Again, wishful thinking, but you never know. Maybe one of the few tickets I buy a year will prove to be a winning one.

  • I would first talk to my own personal bank. Those are the only “financial” people that I know for a long time and they are a big bank and have a good reputation.
    First deposit the money in an account that is FDIC insured.
    Then once the rush settles take your time and investigate other banks and their products and then start splitting the pot up. Because the FDIC only guarantees up to 250K per bank. So although you may have different accounts with the same bank… you need to spread your money. Setting up trust funds and/or annuities will be an option.
    The idea is to keep the principal sum working for you and live of the interest only. This could build a financial legacy for your children and grandchildren. Use the money wisely and make sure your kids get the best education money can buy. That is better than spoiling them to death and seeing the money squandered within a couple of years.

  • You can do a couple things. invest… but u run the risk of loss, put into into cd’s where it is guaranteed to gain interest and is harder to access, so u will force yourself to let it gain. put into into an account and open an allotment in another with a reasonable amount of money flowing in from your winnings so you dont over spend what u have and it can build interest and last a while longer, ot invest in material things that can be sold at a later date for a profit.

  • FDIC only insures up to $250,000 for now, and soon will go back down to $100,000. Find a lawyer that specializes in estate planning. Make sure they will charge you a flat fee, not a percentage of your winnings. You gambled to win this money, STOP GAMBLING! Make sure your investments are secure and guaranteed growth ie. cds, series I bonds, roth iras, bonds….

  • In my eyes the best financial manager is you, you know how much goes where your bank might also be able to help you, but if you really want someone else handling your cash, go for a big name like edward jones.

  • Well I recently came into a lot of money and because I don’t trust people I am my own financial manager. As soon as I received my money I immediately put most of it into a CD for a year. (with that much money I would put it in a CD for a whole lot longer.) That way I am not tempted to spend it. Because everybody knows that when you get a large amount of money you are tempted to spend it on everything you want and see.
    Next I would get a copy of my credit report and if I owe anything I would pay off what I owe. I would also pay all my bills. If I had kids I would set up a trust fund for each of them. I would look at what kind of house I live in or if I am renting I would look into buying a house that I could afford without having 5 million dollars in my hand. (if you don’t pay for the house in full) But you would still have to pay for home owners insurance and taxes so I would keep that in mind and be smart about it and ask youself could I afford the mortgage, home owners insurance and taxes if I did not have this money? Same thing with vehicles and other stuff. Ask yourself is this something I really need? After you pay all your bills and do the other stuff I metioned, the rest I would put it in a savings account that will only let you take out a certain amount a month. You can set it up with the bank to only allow a certain amount or you could have a certain amount a month transfered from your savings account to a checking account. (sort of like a paycheck.) and have your bank keep you from withdrawling your savings unless there is a very very important situation that you need that money and then you would have to prove it. And again if you dont trust yourself then have someone that is really really close to you help you. Because not all finacial managers are honest and besides that you will end up spending money paying them to control your finances. Better to be safe than sorry.

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