This week a Powerball player hit the $1.08 billion estimated Wednesday closing jackpot, as did this lucky guy many people have dreamed at some point of being that lucky and receiving an unexpected and positive financial change.
Wells Fargo’s Wealth and Investment Management chief advisor Emily Irwin describes the feeling of winning a lottery jackpot or inheriting a fortune like a “roller coaster”For the specialist, these events can become overwhelming and in most cases the people who experience them do not know what to do or where to start.
For that reason, experts like Paul Karger, co-founder and managing partner of TwinFocus, a wealth advisory firm for very high net worth individuals and families, say it’s best to take certain steps before spending even a penny of that money. “Don’t do anything big, because sometimes early decisions can have big implications down the road.“, said.
The time in which action must be taken will depend on each person, but for Karger it is better to wait at least 6 to 12 months to make any financial decision and advises that in that period a team of trusted advisors should be consolidated that can help build long-term financial success.
“You may have been working with a set of people over the years who are no longer a good fit to advise on this type of wealth. You may need to expand the team or find new professionals to help advise you Now that you have more zeros on your balance sheet,” Karger said, “take the time to find that person before you think about how you’re going to invest,” he said.
For his part, Irwin added that it is important to establish a plan “for many people, Coming up with a mission statement about what clauses or terms you are going to give away your wealth under is incredibly helpful. because you set the values for that person, instead of being reactive and saying ‘yes’ to every individual or organization that applies. They can go back to that mission statement and say, ‘We have made an intentional decision and plans to support organizations in this particular area,’ he said.
In addition, both specialists suggest avoiding impulse purchases, Irwin added that it is relevant to “understand both your cash outlay and the ongoing costs, expenses and maintenance related to each of them,” he said.
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Source: La Opinion
