What to do if your client wins the lottery
Adam Fuller, principal, Homrich Berg
Unless the lottery is going to pay you a really high rate to hold the money in an annuity, I might suggest that the winners take the money up front. I believe they’d be able to make more on the investment asset than the deferral rate of taking the payments. My first piece of advice would be to take the lump sum and invest it in a diversified portfolio, not run the risk of higher tax rates in the future, and the third party not being able to pay out the annuities in the future. Take this opportunity to invest with an adviser that has experience managing that level of wealth.