With a $68 million prize up for grabs in the Lotto 6/49 Gold Ball draw on Wednesday night, many Canadians will eagerly await the results to check their numbers. However, once the winning ball has been dropped, it’s essential for the lucky winner(s) to consider their next steps.
According to Stephan Desbiens of Exponent Investment Management, the first thing to do is to take a moment to stop, think, and breathe. This influx of cash will have a significant impact on the winner’s life, and it’s crucial to comprehend the magnitude of the situation.
After taking that moment, the winner(s) should sign their ticket and store it in a safe place. Before cashing the winning slip, there are some other important tasks to address. Frank Hounjet from Virtus Group suggests reaching out to an attorney, accountant, and financial planner. This will help in devising a plan for managing the newfound wealth while also preventing potential legal issues. It’s important to consider the resulting publicity and potential solicitation from friends, family, charities, and even scammers.
Once a suitable plan has been made, it’s time to cash the prize. However, it’s essential to note that privacy expectations will likely diminish once the winnings are claimed. Most lottery corporations, like the Ontario Lottery and Gaming Corporation (OLG), have the right to publish the wins on their websites along with a photo of the winner for one year after the prize is claimed. In light of this, Desbiens suggests taking some time away from the limelight.
Additional advisors should be consulted to manage the extra publicity and the complexities that may arise as a result. While your current lawyer or accountant may be proficient in specific areas, they may not have expertise in estate planning or family trusts that could become relevant. As life becomes more complicated, a more specialized professional may be necessary to navigate these areas successfully.
Fortunately, lottery winnings in Canada are not subject to tax as they are considered windfalls. However, any income generated from investing the winnings in non-registered accounts or investments may be taxable. Consulting with a tax professional is crucial to understanding the potential tax implications and identifying the best investment options.
Managing the newfound wealth can bring both stress and elation. Taking care of one’s physical and mental health is paramount to enjoying the wealth and time with loved ones. Staying connected with others is also crucial for financial well-being and overall health. Considering how a lottery win can restore life balance, Desbiens advises against making any major decisions in the first year. It’s better to communicate with colleagues about needing a break from work rather than quitting outright.
Devising a well-defined plan for gifting money to family and friends is essential. Setting annual budgets for donations and assisting loved ones can help allocate funds effectively. It’s crucial to inform beneficiaries about the plan and avoid making impulsive promises or transfers that may need to be revoked later.
Ultimately, staying grounded throughout the lottery win journey is essential. Keeping a calm and collected mindset helps mitigate issues and plan effectively for the future.
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