Don’t Win the Lottery This Weekend!!!
Who Do You “TRUST” with a winning lotto ticket?
Heaven forbid you win the lottery this weekend. I advise you to take the lump sum payout, but I wouldn’t want to go to the bank with you unless I was armed with a 4 letter acronym and another one with 3 letters…
The first one is FDIC; you’ve heard of them, so you know they’re the Federal Agency that insures your deposits at participating banks, even though more than 300 US Banks have failed since 2009. Do you know how much of your money is safe at your Branch? It used to be $100,000 per personal account per Banking institution. After the world economic meltdown that struck in 2008, it was increased to $250,000 and has bounced back and forth. For now it remains at $250,000. Surprisingly, there are millions of people who have account balances over $250,000. They are not fully protected. I’m not one of them and if you’re not either, don’t stop reading yet. There’s hope.
If you were to win one million dollars, that winning ticket entitles you to open accounts at 4 banks, in order to assure that the FDIC would protect your winnings. $1,000,000 divided by $250,000 per bank equals 4 Banks. Personally, a dollar doesn’t make its way out of my wallet and into the Lottery system until the prize grows substantially over $10,000,000. In order to protect $10 million, you would literally have to open accounts at 40 different Banks. Have you opened a new account these days. My first advise is to negotiate for a FREE bank account. Can you imagine if each of the 40 Banks charged you the $12.95 Fee my bank tried to charge me. The Fees alone would cost $518 per month! It would take weeks to open 40 accounts. Can you even name 40 Banks? Which is why you need the additional 3 letters… POD
This second set of letters helps you increase your insurance protection at the Bank by as much as 10 times (nearly $2.5 million) and it coordinates with your family’s Living Trust. If you win the lottery, you need to consult with an Estate Planning Attorney, because their expertise can help you, your family and possibly your great grandchildren’s families preserve money for generations.Trust me, this occurs more than you might imagine. If you live in a sports town like we do, $10 million might be the signing bonus for a rookie right fielder – or a percentage of a CEO’s severence!
By the way, if you just happen to win a life-changing amount of money, we want you to be aware that the firm that holds our client’s money, FolioInstitutional, understands that this scenario is common, and they have procedures in place to help you secure the first $40 to $50 million without having to stand in line at the bank!!! Make that Banks…
Off the cuff, (and I haven’t really thought this through) I’d most likely present my ticket this year, in 2012, the week before the holidays and a few weeks before the United States Fiscal Cliff debacle. Plus personal tax rates surely won’t go down, and now that you’re a millionaire, your Fair Share may go up as your Tax loopholes decline. Today, you’d pay between 35 and 38% in taxes. Tax rates in 2013 may increase to 40%.