LIFE EVENTS
QUESTIONS

Lottery Win

Q.1. What should I do if I win a lottery?
A.

Once you have completed the necessary steps to receive money you should see a financial adviser at a large bank. Ask for a vice president who manages what is called a High Net Worth Individual (HNWI). This person will advise you on what to do with your winnings.

Q.2. What should I do next?
A.

Many people make the mistake of dipping largely into these winnings and reducing the principal that can work for you and guarantee a comfortable future. For this reason you should take a spending break. Get financial advice before you start to spend or share your winnings as various tax laws could eat away a large portion of your winnings if you are not careful.

Q.3. Why should I think carefully before I use any of the winnings?
A.

Many wealthy individuals live by the rule of “don’t touch the capital.” That simply means that you should arrange your finances so that you can utilize the interest made by your winnings but not touch the principal amount. Have your financial advisor suggest ways that you can invest your winnings so that you can comfortably live off the interest income forever.