Lotteries, Winnings, Windfalls

&

How Not To Lose It

Brian Weatherdon MA, CFP, CLU, CPCAAuthor, Speaker, Financial Planner.

Aligning your Wealth & Life to overcome fears andsecure your income, lifestyle, & comfort to age 105

Before continuing . . . .

• Continuing into these slides signifies you accept this as a brief resource to facilitate financial discussions and decisions you would want to have among family and professional advisors.

•

• This series of presentations expresses key approaches to wealth regardless of its source (eg. business, pension, inheritance, winnings, direct savings). Here we highlight results you want to achieve for personal security, life income, and family estate.

• More resources & information at www.GuaranteedIncome4Life.ca• Also get the 5-star rated book (at Amazon, Kindle, and bookstores)

“A Lifetime Of Wealth -- And How Not To Lose It”

Planning ahead . . .

• So did you win already or are you planning for a big win? I’m glad you’re here so we can chat.

• Or perhaps a friend or family member has won. You’re concerned because you realize this could be the most delightful or the most devastating event of their lives.

• Winning can change everything – not always for the better. So it’s good that we talk....

How about those chances?

• Realistically you probably know, the chances of ‘winning big’ were close to 0%. Forget how 70% of people say lotteries are their main shot at a healthy retirement – the actual chance of ‘winning big’ is near 0.0000001%.

• Yet the chance of losing it all is near 100% in the 18-to-36 months after winning. How do you like those chances? That’s why we’re talking ...

What could go wrong?

• Instant heart-attack (Sorry I shouldn’t be kidding here).• “That was best day in my life” (Nothing to look forward to).

• Family conflict (We were all good until I won all that money).

• Loss of friendship (they always come with their hand out).

• Lack of thrill & excitement (even wealth becomes mundane).

• Making the evening news (threat of kidnap, injury, murder).

• In sickness and wealth (just want to go back the way we were).

Fastest way to a small fortune...

• “The fastest way to a small fortune is to begin with a large fortune.” Many families have lost the value of business, inheritance, accident or death benefits, and any other wealth ... in just one generation. Or a few years! ...or just months !!!

• Winning money has proven the fastest way of losing money! Reason is linked to “values”.

What about those “values”

1. I learned long ago that peoples’ favourite stories are how they got through hard times, how families survived, thrived or squeaked by when times were tough. Winning threatens this and perhaps we instinctively rebel against wealth that comes too easily, too quickly. We want our life to mean more than that!

What about those “values”

2. It takes tremendous discipline to stick with a career, build life savings, continue life-long learning, establish and nurture a business.... Values we hold in high esteem include hard work, perseverence, daily discipline, honesty, sacrifice, service, personal integrity. We want to be recognized, respected and ultimately remembered for living with values like these.

What about those “values”

3. Even inheriting money will convey a sense of values. If heirs don’t know the “values” of those who worked and saved to provide an estate and inheritance, they may easily lose that inheritance. Bequests from parents or grandparents are most safe when combined with a legacy of strong family values, beliefs, practices around such wealth.

What about those “values”4. Yet what values led to lottery winnings? What

“values” led to buying a winning ticket? You may answer that everyone deserves to enjoy a dream of winning ...to free their imagination with what they’d do with $1M or $65Million.

• But a dream is not a value system. Reviewing others’ experiences after winning money (see

slide 5 again) you might skip buying the ticket. Still I can promise you - there’s hope

What about those “values”

5. Your mission, if you choose to accept it, is to create “values” and an experience of your life that makes sense with wealth and supports the person & family you are and want to be.

• Other people had more time to adapt through the slow process of building wealth. You only have days – a moment in time – to prepare for this marathon of living with wealth.

6 reasons for Professional help

1. Would you manage this much wealth without a certified advisor and financial plan to guide how this money will be invested and secured?

2. Would you want professional accounting to confirm the best strategies for tax reduction?

3. And philanthropic guidance so gifting will target specific long term goals you choose?

6 reasons for Professional help

4. An estate lawyer to ensure Wills and Trusts specify intended gifting in event of your death.

5. Such a lawyer will confirm Powers of Attorney; avoiding what may happen in frailty/illness if others neglect you while spending your $$.

6. And an experienced insurance advisor who with the estate lawyer, will devise how best to shelter winnings from eventual estate taxes.

Ready to live large and spend?

• OK so allow yourself a specific sum or percentage of the money to “blow it” ...hopefully adding to your happiness, celebration, and lasting memories.

• Even blow 5-10% and put 95% or 90% into a structured strategic financial plan assuring you enjoy financial freedom and security for life! Make yourself a lifelong winner!

Destroy all debts

• One of your first celebrations is paying off all debts. Perhaps parents or children also have debts you want to help eliminate.

• No other investment will give you as much freedom and relief as being debt free now. From now on you can be the captain and architect of your future.

Value of Giving

• Which feels better; finding $20 on a sidewalk or giving $20 to someone in need? #2 right?

• You’re ready to open a window to a bigger “you”, an enormously happy “you”, not by giving money to those who come asking, but as you now create your own philanthropic values and strategies to make a major impact for community locally, perhaps even globally.

Securing your Life Income Mandates

• With strategic professional support you can avoid the financial risks others have taken (as they lost 30%, 50%, or 100% of their wealth).

• See my other presentations on the power of Life Income Mandates to perpetuate wealth while drawing income safely for life. Visit here.. http://www.guaranteedincome4life.ca/blog/life-income-mandates/.

Check-list of valued Professional Advisors

• Certified Financial Planner

• Estate Lawyer for Wills, POAs, future Trusts ...

• Chartered Accountant: business &/or personal

• Life Insurance specialist for life and estate protection

• Lifestyle planning / personal coach / business coach

• Investment and strategic income advisor

• Family resolution specialist

• Philanthropic consultant for charitable intents

Resources to assure life-long income

• Life Income Mandates – for perpetual and increasing life income: http://www.guaranteedincome4life.ca/blog/life-income-mandates/. And see chapter 5 of the book, A Lifetime Of Wealth .....

• Financial Stewardship for Life and Estate: http://guaranteedincome4life.ca/resources/value-of-financial-stewardship/

• Discussion on Winnings and Windfalls starting p.74 in “A Lifetime Of Wealth – And How Not To Lose It. http://www.amazon.com/Lifetime-Wealth-how-not-lose/dp/1489579540/ref=sr_1_1?ie=UTF8&qid=1380311791&sr=8-1&keywords=a+lifetime+of+wealth+--+and+how+not+to+lose+it

And enjoy a whole Lifetime of Wealth

• Web-learning to secure your future: www.GuaranteedIncome4Life.ca

• Get 5-star book (Amazon/Kindle/bookstores): “A Lifetime Of Wealth – And How Not To Lose It” http://www.amazon.com/Lifetime-Wealth-how-not-lose/dp/1489579540/ref=sr_1_1?

ie=UTF8&qid=1380311791&sr=8-1&keywords=a+lifetime+of+wealth+--+and+how+not+to+lose+it