By Montserrat Arqué
06 Nov 2023, 14:29 PM EST
Being the winner of an important lottery prize is not an easy task, since inexperience in this type of subject can lead people who receive large amounts of money from one day to the next into a maelstrom of misfortunes, impossible to escape from. she.
On this topic, Eszylfie Taylor, who is a financial advisor and who for many years has worked with people who have won a lottery prize, advising them on what they should do with their money, assures that a winner can lose his fortune ” in the blink of an eye” if you don’t know how to handle it properly.
According to Taylor, most winners of a significant lottery prize almost always make the same mistakes that can soon lead them to bankruptcy. Below, we list what they are so that if you get one, you won’t commit them.
4 mistakes lottery winners commonly make that could leave them bankrupt
1) They do not evaluate their options
The financial expert indicated that the first thing a lottery prize winner should do is consider what is the best way to collect it, whether in a single payment or in an annuity. Whoever opts for a single payment should be aware that they will receive practically half of the money, while those who decide to go for the annuity, it is something they will not be able to detract from.
But the worst of all is that they do not realize that money has a limit and once it runs out, you will not be able to receive even a little more. So the biggest challenge is to establish a sustainable withdrawal rate that does not exceed your profit rate.
2) Do not diversify your profits
Taylor recommends winners put their lottery prize money into different sectors to create a diverse investment portfolio. “If you want to take a chance on something, do it with the interest you’ve accumulated on the millions you’ve earned,” he said.
3) Ignore the advice of financial experts
The lottery winner who thinks he can handle his winnings alone is completely mistaken. A financial advisor can advise you on which properties to acquire, how to manage them and, above all, the issue that these purchases generate regarding taxes.
4) Make your victory public
Before telling your family or friends the news, you should think specifically about who you will tell it to, since many could take advantage of the situation to ask you for money, which you should reject immediately, regardless of who it is.
Keep reading:
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* Waitress won $10 million in the lottery; She lost everything in lawsuits and for trying to murder her ex-husband.
* Man spends $10 on lottery ticket and wins prize 30 thousand times bigger