Many of us dream about winning Lotto.  We have visions of laying in a hammock on some deserted island somewhere sipping cocktails watching our private yacht bob up and down on the ocean.  We dream of not having to work again, sports cars, the works.  But the scary reality is that many people who win or receive huge sums of money – whether it be through Lotto, or a large inheritance or other windfall – lose it all within 10 years.

We read yet another example of this in the Australian media yesterday.  A young 27 year old English man won a cool 9-million pounds ($15 million Aussie dollars) back in 2002.  Guess what – he’s not only broke and working as a painter for $120 a day.  How on earth can this happen?!  In short, it’s mismanagement of money, and it’s all too common for people who inherit or win large sums of money.

The saddest thing about people who lose large sums such as these, is the sheer loss of potential.  Yes, they may have had some fun for a short time buying luxury goods and flashy sports cars, but after that’s gone (and believe us, it’s gone quicker than people realise), their lives go back to how they were before their big win.  Nothing is improved for the future, their children (and their childrens’ children!) aren’t any better off.  Many would argue that these big winners are actually in a worse position considering they probably haven’t worked for several years while they fritted away their millions.

Examples such as these really highlight the importance of seeking help to manage your money.  An independent person, such as a financial planner, can help to use windfalls to help you enjoy not only the now, but to make sure that you and your children are set up for the rest of your lives.  If you’re lucky enough to win a large sum or money, or inherit it from a loved one, you owe it to yourself to make sure you make the most of it.

We at Financial Spectrum financial planners in Sydney have written a free ebook about Financial Planning for Windfalls and Inheritances.  For professional financial advice, don’t hesitate to contact us for a complimentary appointment with one of our Sydney Financial Planners.


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One Response to “Lotto & Inheritance Financial Planning”

  1. Chris Cornish March 19, 2011 at 1:07 am #

    Agreed. It is amaz the number of people who have a financial windfall and either squander or get conned out of it. Professional financial advice is a must.