Gone with the windfall
CPA Magazine, Rosalind Stefanac
Many lottery winners go through their new riches in no time. Here are five of their most common mistakes — and how they can be avoided with some help from a CPA.
With a large amount of unexpected cash in hand, it’s tempting to start doling out gifts and spending with abandon. Cynthia Kett, a principal at Stewart & Kett Financial Advisors Inc. in Toronto, says there is a tendency among many lottery recipients to become overwhelmed and make decisions too quickly. “It’s better to take a tiny bit to have some fun but then park the rest for at least a few months before you make any big decisions,” says Kett, who has dealt with several big-ticket winners.