Do you have a lousy job that you really hate? Don’t you wish that you could escape from it all by winning a Mega Millions lottery or Powerball jackpot? Winning a lottery is something everybody dreams about. But it’s easily said than done, as the odds of winning a Powerball jackpot, for example, are 1 in 178 million!
But what if you do win a Powerball jackpot or a Mega Millions jackpot? What will you do with the enormous amount of cash that you have won? Would you go on a trip around the world? Would you buy a fleet of sports cars? How would you spend your $100 million?
Well, whatever you do, make sure that you spend the money wisely. We bet you have heard of the statistic which says that 70 percent of lottery winners who win a big lottery go broke in a few years. You certainly don’t want to be a part of that statistic, do you?
Here are the 5 smart things to do after winning a lottery.
#1: Save your money in a high-interest savings account
The very first thing to do is to put all the money that you have won into a high-interest saving account. Don’t start investing or spending, the moment you get your check – put the money into a saving account in a large and reputable bank. Now, although interest rates are quite low today, even a rate of 1% on millions of dollars will generate a tremendous amount of cash – more money than most people make in a lifetime.
#2: Buy own house within limits
Be smart about the sort of house you want to buy. Buy a decent house, a comfortable one, but not necessarily one that is too extravagant. You want to buy a house for your family, and there should be enough space for each member of the family. Do you really want to buy a mansion for $30 million with 100 rooms as some lottery winners are known to do? That doesn’t make sense. Don’t spend more than $2 million on a house. And buy the whole house in cash. Do not waste time on mortgages – the fact that you are so rich now means you don’t need to apply for mortgages. That’s one of the perks of winning a lottery.
#3: Hire financial advisors
It’s okay to spend money now that you have won a lottery, but be smart about it. Don’t overdo the spending. Consult with a financial professional before making a major purchase. There are many top financial institutions such as Goldman Sachs that offer wealth management services to the super rich. You should consider hiring their services. Hire the most reputable financial advisors to help you with your spending and investments.
#4: Invest wisely in dividend paying stocks
If you are a parent, you will want your lottery winnings to provide for a good life for your children. You want your prize money to last for as long as possible. That’s why the wisest thing to do is to invest the money into dividend paying stocks, of companies like IBM, GE, Microsoft, Coca Cola and Apple, companies that have been around for several decades and have stood the test of time. Buying into these stocks will generate a stable income for your retirement, and your investment in these stocks will appreciate in value as well. No matter what you do, don’t invest in risky companies that don’t have a great track record.
#5: Set up a donor-advised fund for charities
Spend money on charities smartly. Instead of cutting a check to every charity that you can think of, set up a donor-advised fund for charities. You will be able to donate the money to whoever you like, but your fund would be invested in the financial markets and grow at a decent rate. So this means you will have more money to hand out in the future. Also consider setting up a charitable foundation. But the advantage of setting up a donor-advised fund is that all the paperwork is taken care of by the financial institution that is advising you.
Follow the tips given here and spend your money wisely, whether you win or do not win a lottery. Meanwhile play lottery online at TheLotteries.net.