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Financial Advice for Lottery Winners and Sudden Wealth

Lottery Financial Advice to Make Your Windfall Worth It

It’s more rare than being struck twice by lightning, but it’s happened to you. Winning the lottery (or coming into sudden significant wealth) in Australia is the stuff of dreams. Yet, without the right financial planning, it can quickly become a nightmare. Unexpected taxes, an inability to manage such large sums, and even opportunists taking advantage are all red flags.

As trusted Melbourne financial planners, ActOn Wealth brings an exceptional level of knowledge, expertise, and down-to-earth sensibility that is crucial in such overwhelming, exciting circumstances. It’s important to have fun and live your dreams, but at some point, it will be crucial to shift gears and implement growth and protection strategies.

We want your windfall to snowball over a lifetime - not disappear in a blaze of glory.
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Managing the Reality of Your Success With Lottery Winner Financial Planning

You’ll likely be pinching yourself for months, and rightly so. What has happened to you is so incredible, so remarkable, that you deserve plenty of celebrating and splurging. But as your lottery financial advisor, we want your windfall to last well into the future. We don’t want it to be squandered and for you to become a statistic. 

So, if you’ve just had the financial flush of a lifetime, we recommend taking the following steps:

  • React to your win however you want; enjoy this astounding news! 

  • Take time out to think. Once the buzz settles, try to anchor yourself and understand what this means, as well as the many directions it can take. It sounds counterintuitive, but many Lotto winners recount high levels of stress as the gravitas of the amount of the responsibilities and complexities it brings begin to emerge. 

  • Pay off debts. Before you spend large sums of money, get your name out of the red. Complete the mortgage, clear up the credit cardgo through the list and tie off these loose ends. 
  • Be honest about your pre-win relationship with money. How did you manage your finances before your jackpot win? Were you careful with spending? Could you never seem to make a paycheque last? Were you on track to an early retirement? Winning the lottery could simply amplify this relationship. That’s great news if you were good with money, but potentially diabolical if you were not. Either way, there’s no judgement here—just a desire to make sure your win is sustained. 

  • Think carefully about who you do—and do not—share this news with. The sad reality is that your windfall makes you a target for opportunists who don’t have your best interests at heart. 
  • Get a great support team of professionals around you—experts you can trust. You’ll ideally need a financial advisor, accountant, estate lawyer and legal representative. This is not our area of expertise, but a mental health therapist may also be a great investment. What’s happened to you is nearly out of this world, and it’s important to manage your emotional well-being as much as your financial health. ActOn Wealth works closely with many of these specialists and can make introductions. 
We can help build a future as big and bright as your win.
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Professional Lottery Financial Advice Services in Australia

Our financial advisor for lottery winners service includes: 

Cashflow and Budget 

It’s unlikely you will ever need to count your beans from now on. However, that doesn’t cancel out the importance of sound cashflow and budget. On the contrary, if you’re talking major figures, this bread-and-butter becomes fundamental to managing your wealth. 

Moreover, a bigger bank balance might prompt you to dream bigger, too. Starting that new business, buying that boat or luxury car, upgrading the family home; they all come with a hefty price tag. Granted, you can probably now afford them several times over, but this windfall is not a tap that stays on. The right budget planning will ensure you can realise your dreams now and well into the future.

Risk Management and Insurance

We’ve already mentioned this; however, sadly, your success can make you a target. There are several ways to safeguard your windfall, including setting up a Trust, which we can spearhead and steer on your behalf. We would also strongly recommend risk protection insurance with healthy liability cover.

Investment Advice 

You may now have ample money in the bank to look after yourself for one full lifetime. But what about your legacy? Are caring for the next generation (and even the one after that) or establishing ongoing charitable donations important to you?

 If so, it’s important to grow and sustain your wealth with savvy, considered investment strategies. After all, the value of money diminishes with inflation, so seeking alternative wealth-growing paths will be key.

Taxation Planning and Strategies 

Although your actual winnings are tax-free in Australia, the same cannot be said for any income generated from your wealth. However, there are valid means and ways of reducing such liabilities. It is, therefore, crucial to get the right financial advice for lottery winners from tax accountant specialists.

Retirement Planning

You may very well want to retire the day your lotto win jackpot hits your bank account. Then again, you might love your job and decide to stay on for as long as you want. Whatever your choice, at some point, you will likely want to start retirement planning. Fortunately, Australians are living longer. However, the longer we live, the more money we need to fund any lifestyle to which we are accustomed. If you’re now living a gold-plated lifestyle, you want to ensure you can retire and keep it that way.

Wealth Management and Estate Planning

Careful estate planning protects your wealth even when you’ve passed away. It can avoid family disputes, ensure your assets are distributed as you intended, deliver efficient access to funds for family and friends, and minimise any potential inherited liabilities. 

Ensure your lucky windfall becomes a legacy for your loved ones.
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Choose an ActOn Wealth Financial Planner for Lottery Winners

ActOn Wealth is a boutique financial firm in Melbourne that is not aligned with any third parties or institutions. This means our advice is based on what our financial advisors deem best for each client. We will curate the ultimate team to support you and your specific goals. 

Contact Us About Financial Advice for Lottery Winners

Whether you’ve come into wealth through a win or any other means, contact our financial advisers today for a no-cost, no-obligation meeting. We can connect with you in person if you’re from Melbourne or arrange a video conference anywhere else in Australia. 

From jackpot to generational wealth—we can build a financial path for you.

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Frequently asked questions

No, people fortunate enough to win the lottery in Australia are not taxed by the Government. However, any income they earn as a result of their jackpot may be liable to taxes. It is, therefore, essential to seek professional financial advice for lottery winners from ActOn Wealth.

No, you do not need to declare your lottery windfall in your Australian tax return. However, any income you make from the win must be declared. For this reason, we strongly recommend you seek advice from professional financial advisers such as ActOn Wealth. 

ActOn Wealth is a privately owned boutique financial planning firm in Melbourne. Our number one focus is our clients. We strive to provide an exceptional service to help you achieve financial security and prosperity.
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