It may be very difficult to tell “who’s trying to help you and who’s attempting to utilize you” in circumstances like this, according to Ely. He advises choosing your own lawyer, accountant, and investment advisor and mandating that they collaborate rather than joining a team of advisors that someone else has put together.
Examine each advisor carefully before going over your predicament with them. Examine the Financial Industry Regulatory Authority’s broker records. Check to check if the state’s disciplinary bodies have received any complaints against lawyers or insurance brokers.
If you live in a small town and don’t want the local lawyers to know about your business, look for a specialist in the closest big metropolis.
Avoid making any major decisions for the first six months after winning the lottery, such as quitting your job, purchasing a home in Europe, upgrading to a luxury vehicle, or amassing a collection of Birkin handbags. While waiting, set aside money specifically for splurges—celebrating your fortune is only natural.
Put off making large purchases. Before making any decisions, you could, for instance, rent a home in the area where you were considering moving, advises Chico, California-based financial counselor Guerdon Ely.
Paying off debts is the best investment there is. Your rate of return is equivalent to the interest rate on the loan, whether it be a mortgage or credit card debt. That’s especially true given the pitiful rates offered by relatively safe products like CDs and Treasurys today. A dollar of debt that has been paid off is a dollar that you are no longer obligated to pay. You can’t predict whether a dollar you invest will increase in value or decrease.
A purchase made with the intention of creating income or capital growth is known as an investment.
An investment always involves the expenditure of some resource today—time, effort, money, or an asset—in the anticipation of a future return greater than the initial investment. For instance, an investor might buy a financial asset right away with the hope that it would provide income later on or that it can be sold for a profit at a higher price.