It's everyone's dream to win a million-or at least enough to gain financial security, a dream house or weekend trips abroad. But what if you actually won? Would you be prepared to manage such a large sum of money or even know where to begin?
Recently, the dream of winning came true for Kentuckian Faye Pelosa, who was awarded a $10 million prize from American Family Publishers, a leading marketer of magazine subscriptions. For Faye, deciding where to begin was easy. She moved her husband to a beautiful long-term care facility after the Veteran's Administration Hospital, where he had spent the past 10 years, decided to abolish its long-term care program.
To help consumers who win or inherit large sums of money make smart money decisions, American Family Publishers asked Timothy Watters, certified financial planner for Washington Square Securities, Inc., to provide a few time-tested strategies.
" 'What do I do with this money,' is often the question asked by clients who have received an unexpected windfall," said Watters. "Although no universal answer exists, there are three rules of thumb that may help secure financial dreams."
Save it-for at least three-to-six months: Instead of spending it, consider placing the money in either a Money Market Account or a Certificate of Deposit, or purchase Treasury Bills from the U.S. Treasury. Liquidity should be the top goal.
Stay true to yourself: You are still the same person and it's important for you to take time to re-orient yourself and decide what you value most. Money is merely a tool. Don't hoard it or waste it.
Remember the wagon train: In old western movies, wagon trains always formed a circle to fend off attacks. You should form a wagon train of advisors. These people should have no conflicts of interest. They may include a Certified Public Accountant, Attorney, Certified Financial Planner and some trusted retired family members.
This is by no means a complete list-but if you're one of the lucky few-these strategies are worth applying to achieve your dreams. Even Faye, who never dreamed she'd be able to provide for her husband's long-term care, decided to do exactly what Watters suggests. She stayed true to herself and what she needed most, then built a wagon train and chose to hold off on other financial commitments.
For a chance to enter American Family Publishers upcoming "Million Dollar" sweepstakes, call 1-888-929-9500. No purchase is ever necessary to enter.
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