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