What To Do When You Win The Millions… Or Billions

Written by trishfms on . Posted in Awareness, Be Prepared, Estate Planning, healthy living, home owner, logistics, Lottery, moving advise, professional moving company, Retirement

With all the Lottery Hype we searched the web and found 10 things to do if you win big!!  Thanks to Forbes Magazine for this priceless information!! winning-the-lottery-fl-move
  1. Remain anonymous if your state rules permit it. Once people know you’re suddenly wealthy, you’ll be badgered by requests for handouts from everyone from charities to long-lost friends and relatives–not to mention all the financial “experts” who will be vying for your business. So check state rules to see whether you can dodge them all by remaining anonymous.
Although Mega Millions is a national lottery, rules on winner publicity vary by state. In New York, for example, winners’ names are a public record. Elsewhere it may be possible to maintain your anonymity by setting up a trust or limited liability company to receive the winnings

Depending on where you bought the ticket, prize winners have between 180 days and one year from the date of the drawing to claim their prize. So find out what the state rules are and plot a course.

FLORIDA LOTTERY LAW:  http://www.flalottery.com/faq

  1. See a tax pro before you cash the ticket. You have the choice between taking the prize money all at once or having it paid out over in 30 installments over 29 yearsin the form of an annuity. With a lump sum payment, you must immediately pay tax on the entire amount. With an annuity, you are taxed only as you receive the payments. People who have trouble controlling their spending might prefer the discipline of receiving the money as an annuity. But this payout form has other drawbacks, You will want to compare the effective yield of the annuity with what you could earn by taking the money as a lump sum, paying the taxes and investing the proceeds.
Another issue to consider is whether taking an annuity will leave your family without the cash they need to pay estate tax if you die before the 30-year period is up, Kirsh says. In such situations people typically buy life insurance policies to cover the estate tax bill.

You have 60 days from the time you claim your lottery prize to weigh the pros and cons. During this time, ask advisors to crunch the numbers and help you decide which type of payment suits you best.

  1. Avoid sudden lifestyle changes. For the first six months after you win the lottery, don’t do anything drastic, like quitting your job, buying a home in Europe, trading up for a luxury car or building a collection of Birkin handbags. Meanwhile, set aside a fixed amount for splurgesit’s only natural to want to celebrate your windfall.
Save the big purchases for later. For example, you could rent a house in the neighborhood where you were thinking of moving, before you make any commitments. If you need a new car, buy a budget model for now.

  1. Pay off all your debts.  Whether it is credit card debt or a mortgage, your rate of return equals the interest rate on the loan. With today’s abysmal yields on relatively secure investments like CDs and Treasury’s, that’s especially true. When you’ve paid down a dollar of debt, that’s a dollar you no longer owe. When you invest a dollar, you can’t be sure whether it will grow or shrink.
  2. Assemble a team of legal and financial advisers. In situations like this it’s very hard to know “who’s trying to help you and who’s trying to use you,” Rather than signing on to a group of advisors that someone else has put together, handpicking your own lawyer, accountant and investment advisor, and requiring them to work together.
Carefully vet each advisor before discussing your situation. Check broker records at the Financial Industry Regulatory Authority. For attorneys and insurance agents, see whether there have been any complaints filed with state disciplinary authorities.

If you live in a small community and don’t want lawyers there to know your business, seek out a professional in the nearest large city. Names can be found on martindale.com, the nationwide lawyers’ directory that you can search by location and area of practice, and on the Web site of the American College of Trust and Estate Counsel, a group of trust and estate lawyers.

In effect, the team you put together will function as your board of directors.  You can start by having a fee-only advisor put together a long-term financial plan and running it by the group for comment. Once you’ve decided on a plan, they can provide checks and balances on each other. You can ask one of them to serve as quarterback, coordinating the group effort. That person can also play the “bad guy,” declining requests from people or organizations for gifts that you don’t want to make.

  1. Invest prudently. Put the money in safe, short-term investments and not even touching it for the first six months. Then ask your advisors is to put together an investment portfolio divided half-and-half between equities (such as stocks) and fixed income (like bonds). Don’t fall for investments that you don’t understand or that sound too good to be true.
  2. Live within a budget. Especially if you’re not accustomed to having a lot of money, it may take some discipline to preserve your winnings and not go on a wild spending spree. One way to restrain yourself is to only spend income–not principal.
  3. Take steps to protect assets. People who are worth a lot of money need to guard against losing assets to creditors. They include everyone from disgruntled spouses and ex-spouses to people who win lawsuits against you. If people think you have deep pockets they may look for reasons to sue.
The best defense is to erect a variety of roadblocks that make it difficult, if not impossible, for creditors to reach your money and property. These asset protection strategies, as they are called, can range from relying on state-law exemptions to creating multiple barriers through the use of trusts and family limited partnerships or limited liability companies. It may be possible to rely on a variety of strategies, either separately or in combination with each other.

  1. Plan charitable gifts. You can offset the additional income from your lottery winnings with a charitable deduction. But you must make your donation by Dec. 31.
For gifts to a public charity, donors are entitled to an income tax deduction for up to 50% of adjusted gross income (AGI) for cash contributions and up to 30% for donations of other appreciated assets held more than 12 months.

If you are unable to decide between now and year-end which charities to support, it may be worth considering a donor-advised fund. With a donor-advised fund, you can make a charitable donation this year and claim a federal tax deduction for your irrevocable contribution but postpone recommendations about which charities should receive grants from the account until some time in the future.

NOTE:  If you don’t want to be badgered by requests, see, “How To Stay Anonymous When You Give To Charity.”

  1. Review your estate plan. If your winnings have made you suddenly wealthy, this may be the first time that you need to plan for estate tax. The 2012 tax law offers more flexibility than ever before. Each person has a $5.43million limit on tax-free transfers, which can be applied during life, when you die or some combination of the two. So if you want to share some of your largess with family and friends, this is the ideal time to do that.
Source:  Forbes  

Why Florida Is The Best Place To Retire

Written by trishfms on . Posted in central florida moving, Cross Country Moving Company, healthy living, home owner, Insurance, move, moving advise, moving out of state, moving services, moving to new state, nation wide mover, national moving company, north american van lines, professional mover, professional moving company, Retirement

retire-in-floridaA generation ago, Florida and Arizona had been THE places to retire. Over the past 20 years, retirees started venturing to other states like North and South Carolina or out west to Oregon or Colorado. However, despite the many varied location options, Florida far and away is the most searched for state. While people retiring today may look beyond the Sunshine State, it’s still a huge draw for some very solid reasons.
  1. Taxes –  No state income tax, no inheritance tax or estate tax.  Why live in a state that is going to tax you when you don’t have to?
  2. Climate  –  In the summer months, the average high temperature is 81 degrees Fahrenheit, while the average annual low temperature remains a comfortable 60 degrees Fahrenheit.
  3. Lower Cost of Living  –   If you live in a place like Florida, your overall cost of living can be lower and you could do other things with your money like travel, spend it on family, or give it to a charity that is important to you.
  4. Water…everywhere  –  You’ve got the Atlantic Ocean on one side, The Gulf of Mexico on the other, and loads of lakes and canals all around. Free entertainment.
  5. Recreation –  Golf, water sports, fishing, boating, canals, over 1,300 golf courses, biking, walking, running, and the new craze, Pickleball. As we get older, staying active will keep us healthier and happier. Being shut in from November to April in the Northeast or Midwest can be really hard to deal with.
  6. Vacation Destination  –  Your friends and family (Grandkids) will want to visit you, especially in the winter if they live someplace in the north. Cold and snowy in Minneapolis? Hey, let’s visit Grandpa in Naples or Bonita Springs! Let’s face it, kids are kids and a dose of sun and sand with a visit to Grandma’s doesn’t stink.
  7. Tons of Active Adult Communities  –  For many of us, having a well-run community sounds great after years of managing our own homes. Also, AAC’s have all the amenities and services that you might want at this point in your life. And, of course, there is that built-in social component that you get in these communities.
  8. Easy Travel by Air  –  Whether it is travel to visit friends and family back home, or people coming to visit you, or you’re satisfying your global wanderlust, there are loads of airports, both domestic and international.
  9. Health Care Availability  –  One nice thing about moving and retiring to a state like Florida, where so many other retirees migrate, is that there are a tremendous amount of health care options and services specifically geared towards older people. With so many “customers”, many health care providers have set up shop in and around the state.
  10. The Arts  –  Big cities like Miami, Fort Lauderdale, Fort Myers, Clearwater, and Tampa have theater, symphonies, museums, operas, and everything in between.
  Source:  Huff Post  
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