Adrian Mastracci, president of KCM Wealth Management, says “A simple plan that can be tailored to each situation. One that makes a meaningful difference."

For Immediate Release

Vancouver, BC (October 28, 2005): A few investors are fortunate to win a substantial sum from a lottery. For example, 17 people from a small town in Alberta are sharing in excess of $54 Million.

William Shakespeare so eloquently wrote, “Fortune brings in some boats that are not steered”.

Adrian Mastracci, investment counsel at Vancouver's “fee-only” KCM Wealth Management, comments, “These winners now have a wonderful problem. Each of them has important decisions to make on what to do with nearly $3,200,000. A little thought will go a long way to making a positive difference in steering the rest of their lives.”

My sage advice is about taking 5 steps to steer the new fortune:

1. First and foremost, park the winnings in a 3-month Treasury bill. No fanciness required. Yes, put a few dollars in the checking account, say $50,000, but leave the rest until some time has transpired.

2. A vacation of 2 to 3 months away from where they live is probably necessary to get away from the instant limelight that all of them find themselves in.

3. Use the 2 to 3 months to contact professional advisors and put together the appropriate game plan. An accountant, investment advisor, and lawyer might be in order. Every winner should think about what is important to them about the new found wealth.

4. Carve out a particular sum, say up to $700,000 and use this for the vacation, paying off debts, perhaps changing or buying a home, buying the new car, gifting money to children, family and friends. Make sure that some of this is directed to the favourite charitable cause. By now, the winner has taken care of all the pressing needs.

5. The remaining $2.5 Million is then invested in a prudent, diversified, long-term portfolio. Say with an allocation around 50% to equities and 50% to the income areas. Seeking a return of say 6% per year could generate around $150,000 in a combination of interest, dividends and capital gains. A part of this income can also be directed to charitable causes at the discretion of the lotto winner.

That’s it. A simple plan that can be tailored to each situation. One that makes a meaningful difference.

My congratulations to the winners. Happy steering.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.