KANSAS CITY, Mo. - Whether you win at the Powerball, casinos or inherit a large sum of money, you will need a team of experts to help you navigate choppy financial waters that come with instant wealth.
David Jackson of Waddell and Reed is a Certified Financial Advisor. He recently took part in the Call For Action call-in special with members of the Financial Planning Association of Greater Kansas City. His clients include professional athletes who suddenly come into large sums of money.
"You really need to slow them down and say you don't want to just show off your money. You want to make your money work for you as well," Jackson said.
For your team, Jackson recommends a couple of different attorneys. He suggests an attorney to handle the initial challenges facing big prize winners, as well as an estate planning attorney to help you with your future needs.
He also recommends a certified financial planner or advisor to put your money to work. Jackson says that person can also be a buffer between you and the long-lost relatives who suddenly appear to cash in on your winnings.
"So you don't feel so guilty about telling that long-lost niece that comes out of nowhere, 'No,'" he said.
Jackson also recommends hiring a CPA. One of the first questions you will need to answer is whether to take annual payments or the lump sum payout. A CPA will help explain the tax implications of each option