Robert Pagliarini, who has developed a national reputation for working with sudden wealth recipients–those who receive a windfall from inheritance, lottery, sports/entertainment contracts, business sale, divorce, stock options, or lawsuit–was interviewed by LearnVest. You can read an excerpt below:
The winner of the largest single-ticket jackpot has yet to step forward. The Powerball ticket, which was sold at a Publix supermarket near Tampa, Fla., for the May 18 drawing, is worth $590.5 million. If you have that ticket or something similar, you might want to read this story.
“A lot of emotions can be attached to this sudden wealth depending on where they money comes from,” says Robert Pagliarini, a CFP® and president of Pacifica Wealth Advisors in Mission Viejo, Calif. About 70% of his practice is focused on clients who have been surprise recipients of large amounts of money. “You need to address the emotions first. Otherwise, you are going to make very bad financial decisions.”
Vast sums of money aren’t a guarantee for the easy life. Lottery winners tend to file for bankruptcy at double the rate of the general population. A Sports Illustrated investigation found that 78% of NFL players file for bankruptcy or experience financial difficulties within two years of retirement. 70% of families lost control of their assets in the first generation following wealth transfer, according to a 2010 survey of more than 2,000 rich families by The Williams Group.
To read the full article, click here: What If You Won the Lotto? How to Handle a Big Financial Windfall