Million-Dollar Lottery Winners Face New Financial Decisions

by Mark Friedman  on Monday, Jan. 16, 2012 12:00 am  

Lottery tickets at the Site store on the corner of Cantrell Road and Kings Row Drive in Little Rock. (Photo by Michael Pirnique)

“It could be that some of those people are 60 days late on their car payment,” he said. “There are some circumstances that cry out that need to be taken care of immediately.”

Mahaffy said that debts should be tackled and a financial team can help determine which ones to pay quickly. The balance would be invested for long-term financial goals.

One option is for a trust to be established so the lottery winner couldn’t have easy access to the money.

And trusts and partnerships could help reduce the tax bill, Mahaffy said in the email.

“A solid financial plan should focus on your risk tolerance and provide a sensible asset allocation — the mixture of stocks, bonds and cash in your portfolio,” he said.

‘It’s a Good Feeling’

Winner Gene Simpson said he planned to continue selling insurance even though he won the lottery. “I love what I do,” he said. “I’ve been doing it 41 years. Why quit?”

He said that winning the lottery, though, has allowed him to pay off his bills and not worry about money. “I wasn’t on the verge of losing the house or

the farm,” Simpson said. “It’s just good to have a cushion.”

He also said that people don’t treat him differently just because he won.

“I’m the same old Gene,” he said. “You’ll never see me acting any different. It’s a good feeling. What else can you say?”

 

 

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