Money Fix: Managing a huge financial windfall

You might think luck is in the air on Long Island, after about 20 Costco employees in Melville reportedly won $201.9 million in the Powerball lottery. You might be dreaming about what you'd do with that much money, or possibly of some windfall inheritance. Still, receiving a really large sum of money carries issues, says Ray Mignone, a certified financial planner in Little Neck who says he's advised four lottery winners over the years. What he's noticed:

Discomfort. The winners he's seen have been working folks just getting by paying bills, unlike his other clients already experienced in investing. No matter how much the big winners wish and pray, they're still awed at the responsibility that comes in managing a windfall. Initially, he says, he's seen people be "nervous, frozen, distrustful of advice."

Generosity. Often, he says, winners start by planning to pay for homes, cars and vacation trips for friends and relatives. The problem is, he said, is that they want to "give away too much money. . . . before they understand their own financial long-term needs." His advice is first to think of their own plans, determine projected expenses and returns on investment, and then plan on how much to "gift" each year. Another issue: how to teach their kids the value of money when "we can't afford it" carries much less weight.

Identity. In some cases people experience guilt over being financially secure when friends aren't. Mignone says he's even suggested people seek counseling help. Of course, these issues can be addressed, and coming upon money can be a great thing. If winners are "smart about it," he says, "their lives can be much nicer."