Dream Big... What would you do with $50Million
Last week someone in Alberta won the $50Million lottery prize. This morning on CBC Eyeopener, David Grey interviewed the spokesperson, Kevin van Egdom from Western Canada Lottery Corporation and one of the questions was about preparing for the acceptance of such a significant cash prize.
This got me thinking about “What if…”
What if you won $50Million? What would you do to prepare for receiving these funds? I think that the majority of us play the “If I won the lottery game, what would I do…” game.
Here’s what a few advisors in the Dexterity network suggest:
- Before contacting the lottery board meet with your financial advisor AND your lawyer
- Create a plan for how you will divide up the assets and stick to it. Some people think of this as putting money into “buckets.” Investing, spending, donating to charity, paying down debt, giving to family members and friends. Just like anything important in your life, sleep on it.
- If you are planning on donating funds to charity consider the vehicle that is best suited to your financial plan AND the long-term considerations of your family. Do you want your children to managing your charitable foundation when you have passed-on?
- Once you have decided the amount that you will be setting aside for charitable giving, create a giving plan and set metrics so that you can measure the impact of your donation(s). You have time – don’t feel like you have to make your donations right away. Philanthropy is a key part of your wealth plan and should be looked at not just from the disbursement side, but also from the asset management/growth side.
- Make sure you have mitigated and/or managed the risks. Consider which bank accounts you are going to put your winnings in (jointly with your spouse or separately). Get information from your financial institution and your lawyer about what best suits your short and long-term needs.
- Talk to an insurance specialist about some of the products that are best suited to your new needs (lifestyle, health, employment status)
- This is the time to update your will and establish your estate/legacy plan (or update this plan)
- Call a family meeting and have it facilitated if you feel that there might be some contentious issues raised. If these funds will be used within your family unity, use this meeting as a way to set ground rules for how the assets will be used and as a way to find out from others in your family how they feel about this wealth.
- Don’t have a financial advisor – here is a list of firms that our clients work with, located across Canada and the United States.
“If I had a Million Dollars…” by the Barenaked Ladies; it’s a song that just puts a smile on my face.