From Rags to Riches: Steps to Take After Winning a Life-Changing Online Jackpot
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OFFSHORE ONLINE GAMING - Discoveries of massive new oil wells, lucky investments in hot new startups that later go public, unexpected inheritances from long-lost relatives―we all dream of the day when we suddenly come into a life-changing sum of money. But for most of us, that remains just that―a dream.
Yet now and then, someone beats the odds in spectacular fashion. Take the recent case of Jon Heywood, a 32-year-old British soldier who won a record-breaking £13.2 million (approximately $17 million) jackpot from an online slot machine at Lukki Casino. His once-in-a-lifetime lucky spin instantly catapulted him into the ranks of the mega-rich.
Here are 9 essential steps to responsibly manage your new mountain of money after winning a huge online jackpot or other windfall:
Assemble Your Team of Advisors
The first call you make should be to an experienced attorney who specializes in asset protection and tax planning for high-net-worth individuals. This step is crucial―your attorney will quarterback the rest of the planning process and refer you to financial planners, tax accountants, insurance brokers and other professionals to round out your advisory team.
Keep a Low Profile
It may be tempting to immediately quit your job, buy a mansion and luxury cars for your friends and family, and jet off to a tropical island. Fight the urge. Broadcasting your windfall will attract all sorts of unwanted attention from long-lost relatives, unscrupulous scammers, and predatory lawsuits.
Set Up Accounts to Manage the Money
Work with your financial advisor to set up the appropriate accounts―trusts, limited partnerships, IRAs, etc.―to protect your new assets and save on taxes.
Develop a Wealth Management Plan
Now it’s time to figure out your goals, risk tolerance and optimal asset allocation mix. Your financial planner will translate all this into a personalized wealth management plan with detailed financial projections.
Hire Security
Unfortunately, wealth also attracts security risks―kidnapping, blackmail, cyber attacks, etc. Hire security experts to keep your family and assets safe.
Make Lifestyle Upgrades Slowly
It’s wise to make big purchases gradually to avoid culture shock. Pay off debts, then rent a nicer house or upgrade vehicles. Delay buying real estate until the dust settles.
Set Up Your Legacy Plan
Meet with your attorney and financial planner to develop a comprehensive estate plan―wills, trusts, health directives and powers of attorney. This ensures your assets transfer smoothly to your heirs and favorite charities after your lifetime.
Give Back
Philanthropy is one of the great joys of wealth. Set up a donor-advised fund or private foundation to better the world and dovetail with your values.
Find a Support System
Seek out mentors―ideally, successful entrepreneurs or professionals that came from modest means―that can advise you on handling wealth wisely. Their guidance and support will prove invaluable.
Coming into a sudden windfall like winning the lottery or a big online jackpot can certainly be a blessed event. But without the right planning, the curse of newfound wealth can quickly turn that blessing into a catastrophe. By methodically following these 9 critical steps, you’ll be on the path to prudently managing your new fortune and living happily ever after.
