If you won millions in the lottery, would you know what to do first? Would you know how to make that money last longer than just a few years?
Eszylfie Taylor, financial advisor to the stars and the country’s leading African American financial advisor, shared some tips exclusively with The Blast that can help anyone manage their money in the best possible ways.
Taylor began his career at the age of 22 with New York Life Insurance Company. It didn’t take long for him to reach the ranking of No. 1 Broker in Los Angeles and No. 1 agent for the company’s African American market. With a client roster that includes highly paid athletes and Hollywood celebrities, Taylor is able to help anyone from any background in every generation.
So You Won The Lottery – Now What?
Going from an average amount of income to an extreme amount can really change things for people. The question is will the change be a good one that sticks for a lifetime or one that comes and goes quickly? The key to making it last is to create a plan and stick to it.
“So you’ve got to plan. As a general rule of thumb, I tell people take the amount of money you want to live on on an annual basis, take that number and multiply that by 20. That would be like your target savings number,” he told the Blast. “As soon as you have that number, then my advice would be not to compromise that.”
Taylor gave the example that if you wanted to live off of $200,000 a year, times that number by 20 and that’s the amount you put into savings. He further explained that he asks his clients when they are making a plan of security if they want a predictable outcome or a probable one.
“Most people want some level of predictability,” he continued. “So to the extent that you can integrate some level of safety and predictability in your plan, that would be one of the first things I do. Don’t risk it all.”
One of the biggest mistakes that people make when they come into a large sum of money is that “they risk it all,” Taylor said. He said it’s best to live off of interest, but that can come with challenges for some.
“The challenge is that most people don’t have the ability to generate that level of income or have that kind of windfall again. So when it’s gone, then it’s gone,” he said. “So one thing I say a lot is it’s not a matter of how much money you make, it’s how much money you keep.”
Eszylfie Taylor Shares Tips To Help Save Money
There are some surefire ways to ensure that you have the best chance at saving the amount of money necessary to make it last the longest time possible. Taylor shared some tips that can be used for any amount of income or winnings.
“You want to align yourself with good people and build a good team around you of professionals. A good investment advisor, good attorney, good bankers, and use the group as a collective effort,” he said. “There’s no one person or no one planner that’s the end all.”
The biggest thing is to be very clear on your objectives. It’s not a one-size-fits-all situation. Education is very important for success.
“My whole mantra in working with clients is to make sure they’re educated. An educated client can then make their best decisions,” he said. “Most people don’t know the rules of the money game. And you can’t win a game if you don’t know the rules. So you need to understand how the market works. You need to understand how taxes work. You need to understand how real estate, trust, banking, you need to understand how these things work and then you can make decisions.”
Financial advisors can help with education and planning. They can help with tax planning, choosing suitable investments and other helpful money management.
Teaching The Next Generation About Money
In addition to being a financial advisor, Taylor is also a father to three teen girls. He advises to start kids learning about money at an early age and just “throw them in the fire.”
“I have a 16-year-old daughter. Got a checking account for her and she’s working at one of my companies, she’s working in a gym, she’s a commercial actress, got a couple gigs coming in so I’m like, ‘Okay, every time you make money, half goes in your savings account and half goes in your checking account. Be mindful of that,'” he told The Blast. “Once or twice a week I’ll get an insufficient funds notice, because she’s not looking at what’s she’s spending.”
Taylor said it’s important to teach children the old adage, “Money doesn’t grow on trees.” Learning the lessons of how to manage money at a young age when it’s hundreds of dollars so that it will serve them well when they are managing larger sums of money as they grow up is key.
“One of the biggest mistakes in particular that I see wealthy people do is that they do not expose their children to money. They do not expose them to wealth. They do not expose them to real estate and investment portfolio. In some part because I think maybe the thought is I don’t want them to know what’s coming to them,” he explained. “I want my kids to know exactly what’s coming to them, because I want them to be ready for it. I want them exposed to money.”