Can you imagine winning the lottery only to find yourself in dire financial straits within a few years? It happens, and the Courthouse News Service has just one more reminder about why lottery winners must protect themselves from outsiders and from themselves. We are not naming the people involved in this because our interest is in helping the public rather than reporting on one individual’s winning that seems very strange all around.
The news report has a $168 million lottery ticket winner listed as waking up to a financial nightmare. What is interesting is that the winner in this case may have run into trouble because of his financial advisors. When 24/7 Wall St. issued the 12 things not to do if you win the lottery, one of the must-do items listed is to get help from reputable financial professionals.
The CN report from Tuesday listed that the winner as suing two licensed attorneys and insurance agents who had opened a branch office of a wealth management company named EFG Capital. We have not heard of this company in any light (positive or negative, nor was the firm reportedly named in the suit) ever before this article, but the long and short of the matter is that lottery winners need to know that they are in good hands and they need to know the reputation and exact plans of any firm that they would do business with.
The winner and plaintiff in the new part appears to have had a serious falling out over claims from two other people around who really won the lottery or how that was shared. We are leaving that reporting as a separate matter because we are only interested in why the public needs to know what to do and not do if they win the lottery.
This last news report claims that high-value property was purchased, causing the winner to end up in serious debt. It also was alleged that the defendants in the case pushed high-dollar multi-million insurance policies, despite the lotto winner having no children, no siblings, and one living parent.
If you are ever so lucky as to win a lottery or a large financial judgment, it is imperative that you seek reputable financial advisory services. They will not be the cheapest services, but the idea is that you can sleep at night with the peace of mind that you probably have not been duped only into the highest commission products and into financial strategies that are not relevant to you.
If the report from this week is accurate, there are three of our twelve things which may have been violated. Again, there are too many respectable and well-known financial advisory firms not to go to one of them. Taking on debt, and buying up lavishly are also part of what not to do.