Winning The Lottery – Steve Sexton On San Diego Living Video



Winning the Lottery


In this financial advice segment of San Diego Living, Steve of the Advisory Group in San Diego talks about what is the best way to go about your finances when you win the lottery. Should you go with lump sum or annuity? Why do people lose all their winnings so quickly? What about taxes? Steve tells you exactly what you need to know and goes on to talk about tax tips in general. Watch to learn all this valuable information and a chance to win a copy of his book, More Better.

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well you should does that mean buying a lottery ticket well I don’t know let’s ask the expert our expert Steve Sexton has been with us over three years now is our financial adviser here and now best selling author as well thank you congratulations thank you talk about the book here in a second let’s talk about the lottery because the lottery just came to Powerball I should say and these gigantic jackpots just came to California this week first drawing tomorrow night the first question people always ask hmm lump sum or annuity which one either have a whole bunch of money now or a lot of money every year but let’s talk about that first of all the payouts begin at 40 million dollars last night is up to 60 and it’s been as high as almost 600 million dollars now there’s a one in a hundred and seventy five million chance you can win right right now nobody’s gonna win though it might be somebody within the sound of our voice well hopefully got to play though you hear me but the reality is this 90% of people take the lump sum payout so if you just won the 60 million dollars that was last night you get a 60 percent of that and then if you’re in California you’re gonna pay 55 percent of that in text so on a 60 million dollar payout you’ll end up with 18 million I know it’s hurtful and hard to deal with 18 million dollars right but here’s the other big fact just like most professional athletes a large portion of the entertainment industry and people who receive it receive inheritance they go broke in a very short period of time they said we’ve heard this story over and over again that people take the lump sum and then we hear later on oh yeah it’s all gone well part of that reason is because they don’t have a plan in place for distributing it and what I mean by that is they receive this money and they go oh I can buy that car that house going to vacations live like the rich and famous and the next thing you know that money’s that ends and they don’t think it’s going to end right and the people who do well with it even if it’s an inheritance they figure out how they’re gonna distribute that money but more importantly they have a process in place for making the financial decisions because everybody’s knocking on that door and they’ve got some sort of plan or an idea they want to give it to charity or whatever but they don’t have a plan and they don’t have a process and that’s where they do eyes which is better the annuity or the lump sum let’s talk about that tax wise moving forward we know taxes are pretty darn low think they’re gonna get worse later on probably would be so if you think about it you’re gonna over 26 year period of time 60 million dollars you’re going to end up with approximately 2.5 million dollars in earnings per year but you’re still going to be in the top tax bracket so you’re gonna pay 55 percent now if you take out the lump sum you’ll have 18 million dollars net now how what best suits you is really what it comes down to if you’re a frugal person can handle that money great if you’re not you’re you know if 2. 5 million dollars you’re still going to end up with 1. 2 million dollars annually for an income for the next 26 years so it’s like a little trust fund right so it really depends on your situation want to buy something big now well you can but you better manage it or it’ll it’ll all be gone so we’ve seen that over and over and over again all right anything else you wanted to say about the lottery before I move on okay it’s $2 you don’t mind people spending a couple of bucks on the lottery is all here some financial advisors that’ll say it I take that two bucks and compounded interest over time and it’ll grow to three dollars within 20 years well the key is don’t go crazy if you’re gonna go 2 bucks here 2 bucks there no big deal your odds don’t really increase them winning by buying more tickets do they not to a fraction that that’s statistically insignificant isn’t it oh yeah you’re very very small I mean got to be the lucky stars of line the holeshot well let’s talk quickly about taxes here and the fact that it’s tax time is next week it’s a little late to plan so what do you suggest for going forward from this point forward well right now you could just still do a couple of things you have until April 15 to contribute to your SEP IRA or your regular IRA so if you have a chance to do it now the other things is most people stick with the same tax return every single year meaning they might have standard deductions but if they have increase in medical or other expenses they want to talk to their CPA and bring in those extra receipts because you could save the money in taxes moving forward very important this is the time after tax season is over to sit down with your financial advisor and your CPA we do this all the time for example I’m meeting with a gentleman and a CPA and we’ve already met a couple times but I showed him about how he could restructure his company just a a bit to save him $100,000 a year in taxes now the thing is he’s been going to that same CPA for the last 20 years I could have saved him 2 million dollars the last 20 years and I’ll save my another a million moving forward got to get everybody talking to so PA the financial planner you all have to work together it doesn’t work oh yeah most definitely sieve saxman a second advisory group so that’s that’s your advisor right there and I bring everybody else into the plan and in your total you’re talking here now you’ve got a little something special for everybody today yes the publisher has given me books which is great and I’d like to give them out to viewers so for the first 10 people who’ll call will give a signed autographed book of leading experts help people for a business and in life first 10 people and on top of that we’re going to provide a three dimensional retirement analysis now this is a very involved retirement analysis it means taking all your wants and desires understanding how you can lower eliminate those taxes understanding how money flows onto your tax return but also how it affects your income are using them efficiently your risk comfort level do you understand the risk you’re involved in what are the fees and expenses you’re getting pretty detail that’s over $1200 value oh yeah all right Steve section section Advisory Group first 10 callers get a copy of the book yep and get a an analysis free retirement needs all right Steve it’s always great to see it did the see to learn so much the section Advisory Group. .

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