Winning the lottery puts a large sum of money in someone’s hands very quickly. Most people have no experience managing wealth at that scale. Managing it poorly is one of the most documented reasons lottery winners end up worse off financially than before. A lawyer handles the legal side. A financial advisor who works with sudden-wealth clients handles the rest, protecting, organizing, and planning what happens to that money over the long term.
Winning the lottery puts a large sum of money in your hands very quickly. That sounds straightforward until you consider that most people have no experience managing wealth at that scale. Managing it poorly is one of the most documented reasons lottery winners end up financially worse off than before. A lawyer handles the legal side. A financial advisor who works with sudden-wealth clients handles the rest — protecting, organizing, and planning what happens to that money over the long term.
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Accountants and Financial Advisors for Lottery Winners
Accountants keep your finances organized. They also deal with tax obligations that come with a lottery jackpot win. Look for a CPA in your area or someone accredited by the AICPA.1
A financial advisor who specializes in sudden wealth works with clients on wealth management and long-term financial planning. The scope of their work typically covers investment decisions and financial structure. Tax planning generally falls to an accountant. Estate planning usually requires a lawyer. Starting a business with winnings typically involves a separate business consultant. No single professional covers all of it.
Below are some professionals whose work is relevant to this area.
Robert Pagliarini, CFP, EA
President, Pacifica Wealth Advisors, Inc.
PacificaWealth.com
Robert Pagliarini wrote The Sudden Wealth Solution: 12 Principles to Transform Sudden Wealth Into Lasting Wealth. His work focuses specifically on people who come into large sums of money unexpectedly.
Liz Weston
Personal Finance Columnist
asklizweston.com
Liz Weston writes personal finance columns for NerdWallet. You can reach her through the contact form on her site.
Nick Holeman, CFP
Certified Financial Planner
Betterment.com
Nick Holeman works with individuals and families on financial planning. His focus is on simplifying complicated financial situations.
Elle Kaplan
CEO and Founder
LexionCapital.com
After years in investment banking and trading on Wall Street, Kaplan launched her own firm focused on asset management and retirement planning.
Lance Scott
Founder
bayharborwealth.com
Lance Scott founded Bay Harbor to work with clients on financial planning for the present and long term.
How Lottery Winners Find a Financial Advisor
When a lottery win becomes public, offers to help manage the money tend to follow quickly. Some of those offers come from licensed professionals. Others do not. Verifying credentials independently matters here.
Referrals, credential verification through the directories listed below, and conversations with multiple advisors before any agreement is signed are standard steps in the selection process. Relevant questions to ask are covered at this resource.2
The working relationship between a client and a financial advisor tends to involve ongoing, detailed financial conversations. Whether the initial conversation is straightforward and two-sided is observable from the first meeting.
Advisors differ in specialty, background, and compensation model. Some charge fees directly. Others earn commissions from products they recommend. These structures affect how advisors are compensated for their recommendations, which is factual information relevant to the client relationship.
More Wealth Advisors and Managers
You can search for a personal financial advisor through the following directories:
The National Association of Personal Financial Advisors
Investopedia’s Top 100 Most Influential Financial Advisors
Directory of UK Wealth Managers
More Help From the Web
How to Choose a Financial Advisor
9 Best Financial Advice for Lottery Winners
The very first thing you should do if you win the $800 million Powerball
Understand Lottery Games Using Math-Based and Data-Driven Analysis
Explore the Lotterycodex Calculator
Many do, though it is not a legal requirement. Managing a sudden, large sum of money involves tax decisions, investment choices, and estate planning that fall outside most people’s prior experience. Financial advisors who specialize in sudden wealth work with clients on these areas. Whether to engage one is a decision each winner makes based on their own situation and the complexity of their financial circumstances.
Timing varies by winner. Some contact an advisor before claiming the prize. Certain decisions, such as whether to take a lump sum or annuity, carry tax and financial consequences that differ based on which option is selected and cannot always be reversed once a choice is made. Contacting an advisor early in the process allows time for those decisions to be reviewed before they are finalized.
They cover different areas. A financial advisor who works with sudden-wealth clients focuses on wealth management, investment decisions, and long-term financial planning. An accountant, particularly a CPA, handles tax obligations and financial record-keeping. The tax implications of a large jackpot win are significant and ongoing, which is why many winners work with both types of professionals.
Advisors who focus on sudden wealth, windfall planning, or lottery winners typically note this in their practice descriptions. Directories like NAPFA and the Garrett Planning Network include specialty filters. During an initial conversation, asking directly whether the advisor has worked with clients who received large, unexpected sums is one way to assess their relevant experience.
That varies by winner and by jurisdiction. Some jurisdictions allow winners to remain anonymous. Disclosing a win publicly before professional advisors are in place can result in unsolicited contact from third parties. The legal and financial rules around disclosure depend on local regulations, and a financial advisor or attorney can explain what applies in a given situation.
Explore more:
References