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What happens after you win a lottery?

The statistics behind a typical state sponsored lottery makes it very profitable for the states that run them. The state typically gives out as prizes less than half the money that they take in, and they are free to change the rules to make it even more beneficial to the state.

The average lottery customer has dreams of wealth and luxury, and once in a very great while, the dream comes true. However, behind that dream is a reality that most lottery players don’t recognize. In fact, lottery players have a lot in common with the average dog. The average dog has an almost instinctive desire to chase cars, and would do so without thinking. However, if that average dog ever caught the car, the dog would not have any idea what to do with it, and their most likely response (barking at it or peeing on it) would likely do nothing to improve that dog’s life.

Like the average dog, the average lottery players will chase the dream of instant riches, but if the wish would ever come true, they would not have any idea of what to do with the money, and their most likely response (talking about it to everyone they know or pissing it away on a flashy lifestyle) would likely do nothing to improve that lottery player’s life.

There is no best response to deal with a life-changing monetary windfall, but for the average newly rich person, probably the best things to do are to stay quiet about their new wealth, find some competent financial and legal advisors (both of which should be paid a set fee for their advice), and consider some of the ideas below:

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How to put your long term investments on autopilot

In the US, pensions are rare for most workers, and those who do want to save for retirement are encouraged to use employee funded plans such as 401Ks. The problem that most investors have is that most of them are not professional investors. In fact, most are not even casual investors, and often do one of either two things, make no decisions at all, or leave the decisions to some kine of financial expert.

Doing nothing is not a good option, and leaving decisions completely to others is a better idea if the financial advisor is charging a minimal amount for their services. One company that takes the latter approach is Wealthfront (www.weathfront.com), which is an automated investment service that manages a diversified, low-cost portfolio of index funds.

Wealthfront makes it easy for investors who are willing to do a minimum of work to track their investments by creating personalized online investment account that is accessible anytime and anywhere from your desktop, tablet, phone, or other mobile device. The company supports the following types of accounts:

– Individual, joint, trust, & LLC taxable accounts
– Traditional, Roth, & SEP retirement accounts (IRAs)
– 401(k) rollover accounts
– 501(c) accounts for non-profit institutions

What are the Wealthfront investment options?
Wealthfront uses exchange traded funds (ETFs) that track indexes for the 11 major asset classes. These kinds of broad, market based investments historically have been more consistent than individual stocks. Their analytical process can also provide investors with reasons why a particular ETF was chosen.

How much does Wealthfront cost?
Wealthfront requires a minimum of $5,000, and charges no fees for the first $10,000. After that, the charge is 0.25% per year. There are no additional fees for their service, and no trading commissions. For A $100,000 investment, the annual costs would be $225 (0.25% of $90,000).

While investing with Wealtfront is not like putting your investments completely on autopilot, it can take most of the work out of your investing decisions. Interested investors should visit Wealthfront.com and evaluate their service for themselves.