Let’s say you are a dental assistant or a nurse, mechanic, or a million other great professionals that make our world go around, but you are not a financial expert. That’s fine. Most of us are not. But, now imagine you won the lottery! Suddenly, you have more money than you ever dreamed of. You may grab a pen and do some quick math, and think “ I will never need money again!” You could be right. A smart person looks at their winnings as an opportunity to live a different lifestyle. They seek out experts and learn how to invest if you win the lottery. Others?
Well, others lose their found money in short order.
Special note. When a person wins the lottery, they are bombarded with requests for money.
Your hometown needs a gym or a library. Your little league coach needs knee-replacement surgery. Your third-cousin Becky-Sue knows she can make it in Hollywood of someone will just help her get there. You are going to have to grow a thick skin real quick. So Be prepared.
Asked The Experts
We asked some experts, what they would do if riches suddenly rained down from the heavens on them. Here is their advice.
Mark Cuban is an American billionaire entrepreneur, television personality, media proprietor, and investor, whose net worth is an estimated $4.3 billion, according to Forbes.
Marks’ advice is, do not to invest right away. Put it in the bank and live comfortably for a while. Keep the news very quiet and personal and give yourself and your family time to reflect on what you want to do, for at least a year.
Terence Thomas Kevin O’Leary is a Canadian businessman, author, politician, financial expert, investor, and television personality.
Kevin tells us to take the lump sum. Do not waste it, O’Leary recommends putting the money to work by investing in “low volatility, dividend-paying stocks.”
Like Cuban, O’Leary warns against making any risky moves with your winnings. It’s not worth accidentally blowing it. “You’ve won financial freedom,” he says. “Don’t screw it up!”
For the inexperienced, choosing to receive a set amount each year prevents you from being able to blow all of your earnings right away. “While you may think that you may never run out of money, that’s not true,” Orman explains. “If you don’t feel like you can manage your own guilt, if
you don’t feel like you can manage that large of a sum of money because you have no idea who to trust, you have no understanding of money, you have no understanding of the market — simply take the annuity.”
You will find many friends trying to help you decide on the best way to spend your money. But, money seems to get away from you. Remember, the government always has taxes hidden in the paperwork. Even giving the family a gift could boat you a bundle.
You never really know someone until you bring money into your relationships. Money destroys marriages, families, hopes, and dreams. Brothers will leave brothers. Fathers will turn on wives.
You just never know. Hire a licensed financial advisor with full knowledge of all the tax laws of the state you are in.
Hire a bookkeeper. Even transactions between family members should have the details specifically spelled out. This includes the repayment dates and the terms including interest If it is a loan. Require witnesses and a notary for all paperwork.
If you are approached by a company you do not know about investing in their company, be very careful. This is not a normal business. Contact the Better Business Bureau and find out if they have a reputation for running scams. Do they have business licenses on file? Call a business lawyer and check these people out. Do not give them any information or any money.
Take some time and think about the future. What do you want for your property, your grandchildren, and your business? Now is the time to get with attornies and put money away to insure those things can happen. You may want your business will go to your eldest child. But what if your eldest child is anti-social?
Winning the lotto changes your life. It makes things right. But, if you are smart, it doesn’t just have to make things just right-now. Go ahead and have some fun. But then talk to some pros and make your money change your life in a lasting way. The world is full of people whose goal is to separate you from your money. Don’t be their victim.
Lottoland made you a winner, but now the ball is in your court, so show us what you can do.
Photo credit: Tiramisu
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