So Saturday’s estimated lotto jackpot is $25M, we will talk a little about planning for the future after winning the lotto.
Invest prudently. Don’t show up at the teller’s counter with a check for millions—talk to the bank’s upper management or private banking department ahead of time to discuss the best options for holding large amounts of money. Think about spreading your wealth around multiple accounts and banks.
Put the money in safe, short-term investments and not even touching it for the first six months. Then ask your advisors to put together an investment portfolio divided half-and-half between equities (such as stocks) and fixed income (like bonds). Don’t fall for investments that you don’t understand or that sound too good to be true.
Live within a budget. Especially if you’re not accustomed to having a lot of money, it may take some discipline to preserve your winnings and not go on a wild spending spree. One way to restrain yourself is to only spend income–not principal. Especially in today’s investment world, it takes a lot of principal to generate income and once you start spending principal, the principal quickly dissipates.
Plan charitable gifts. As soon as people find out you’ve hit it big, you’re going to have to deal with a lot of financial requests from friends, family, and charities. Talk to your team about Deeds of Covenants. You may also consider forming an official charity foundation.
Plan for beyond. Sadly, winning the lottery is unlikely to also make you immortal. Work with your team right away to sort out your estate planning, including your will, so your family is taken care of if something happens to you.
Keep a healthy mind and body. We all know money can’t buy happiness—in fact, some folks say winning the lottery and dealing with the money and requests for help and loans ruined their lives with stress. Eat right, exercise, talk to close family and friends, and seek professional counseling if handling your new wealth is causing too much emotional strain.
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