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By Mwilliams
If a person with little or no money wins a lottery for several million dollars, their first instinct would be to go on a shopping spree for stuff they could never afford. Statistics has proven that winners of large jackpots face both a pile of money and lots of problematic decisions.
We have all heard horror stories about people winning the lottery and a few years later they are totally broke. Most likely there will be family, friends and even strangers seeking ways to relieve you of your money. A prime example of that is a man in Florida who won the lottery a few years ago, it was reported that he was paying for funerals, lending money to friends, starting flawed businesses, and even giving out as much as a million dollars to an acquaintance. Needless to say his money want be around for very long at that rate. This individual did indicate that he wanted to start a foundation for the poor although he never did.
I have never been fortunate enough to win a large sum of money; however, I did consult with an accountant to determine what proactive steps an individual may take if they suddenly come into a large sum of money. Most people are familiar with accountants either through running a business or tax preparation. An accountant can be very beneficial for anyone coming into a large sum of money. There are some accountants that have bad reputations, but the majority of them are honestly contributing their knowledge and skills for the betterment of the business industry. The accountant pointed out several important factors for consideration:
-Anyone coming into large sums of money should sit down and do some planning before embarking on a spending spree.
-Locate a good experienced and competent accountant so they can elevate all your financial needs because they can provide information about laws, taxation, and other related matters. By taking this action a person can gain a lot of benefit and knowledge which can lead to financial success.
-It would be best to choose a financial accounting service locally, but if you choose one in a different state beware of the laws that apply.
-Establish a trust fund. It can be structured to generate money so that the fund pays out dividends with the principal untouched. (Remember accountants are not lawyers, but they have the knowledge of explaining the operations of a trust fund).
The accountant indicated that if an individual wants to help the less fortunate, then establishing a foundation is an excellent idea, but it requires a lot of research and detail planning. A private foundation is a unique, not-for-profit entity that is controlled by a business, family or an individual. It is organized solely for charitable, educational, religious, scientific and literary purposes under Section 501(c) (3) of the Internal Revenue Code. In order to qualify as a private foundation, and for the contributions to be deemed tax deductible, the entity must be recognized by the IRS as a qualifying tax-exempt organization.
I clearly understand the importance of searching for reputable chartered accountants or financial services. By exerting effort in your research, you will be able to find a good financial service provider. Money is very important; therefore, it is of great importance to to keep track of it in the best possible manner. When using an accountant you don’t have to worry about privacy issues because all business dealings are confidential and safe. The accountant may function as the account manager and is paid hourly or a standard fee may apply.
About the Author: Mathematically & Statistically Increase Your Chances Of Winning The Lottery
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