Financial planner offers tips for Powerball players

Financial planner offers tips for Powerball players

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Financial planner John Fawaz tells people who come into a large sum of money first and foremost not to rush into anything. Financial planner John Fawaz tells people who come into a large sum of money first and foremost not to rush into anything.

By DREW GARDNER
6 News Reporter

KNOXVILLE (WATE) - It's not likely that many people would fall into a sum as large as the Powerball jackpot, but if you did what do you do with it? Invest? Put it in savings? Lock it up in a safe?

Financial planner John Fawaz has his own tips for what to do if you win the lottery.

He says he sees people making the same mistakes when inheriting large estates as many lottery winners.

"We've had examples of people winning the lottery and going into the car business," said Fawaz. "Basically they had zero experience there, but they loved cars. That doesn't necessarily make you a specialist and comfortable enough to run a business like this."

Fawaz has four tips for potential lottery winners.

First, don't rush into anything.

Second, put together a qualified team of professionals to assist you like a CPA or financial planner.

If you can't fight the urge to spend some of that cash while you're getting that team together, Fawaz says that's okay.

A tip he often tells those who receive an inheritance is to put aside some 'play' money.

"This money could be a portion of the inheritance or a portion of the lottery money to go buy all the toys you want or to buy anything you thought you'd like to have and just get it out of your system," said Fawaz.

Third, Fawaz says to acknowledge you are going to have more friends and family than you ever had before, and that they will likely be asking for money.

Fourth, you don't have to invest in anything you don't understand or anything with any risk.

Fawaz says with the sum of money this jackpot is offering, the interest alone would give anyone a very comfortable living.

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