How To Deal With A Financial Windfall
It must be every teenager’s dream. When Canadian teenager Charlie Lagarde bought her first scratch card lottery ticket to celebrate her 18th birthday it turned out to be one in a million as she won an incredible $1 million Canadian dollars (£550,000,US$ 780,000) at her first attempt.
Charlie was offered the choice of taking the $1 million Canadian dollars as a lump sum or receiving C$1000 tax free a week for life. She sensibly chose the $1,000 a week option, which would be a very generous sum of money for any teenager. If Charlie lives to her eighties she will have received over $3million during her lifetime from her win, which, despite inflation, still makes it appear to be a good option.
Geoff Newman, Development Director at leading Hertfordshire Financial Services company Lyndhurst Financial Management says
I certainly think Charlie has made a wise decision as the temptation to spend spend spend when you receive a windfall can be overwhelming for many people. I think it’s vitally important to take professional advice in any circumstances when you come into a lot of money, whether as a lottery or competition winner, cashing in a pension or receiving a substantial inheritance.
For some people they may prefer a lump sum of money to pay off any debts, their mortgage or to make their own investments. Everyone’s personal circumstances are different but I think for a young woman who is still a teenager and very much starting out on her adult life, choosing the weekly payment is a sound decision and prevents her from spending all of the money in just a few years. As we have seen in the past, it’s very easy to do if you don’t have good advice that will enable you to take financial control and secure your future.
I think in essence she’s done the right thing for herself, although it may mean that in the very long-term any beneficiaries of her will would only get something from her lottery win if she invested some of the C$1000 per week.