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There are many blunders that can come with sudden wealth, but the aftermath of the largest single payout in the Mega Millions jackpot illustrates one of the biggest screw-ups lottery winners make: not safeguarding the ticket.
It may seem an obvious precaution, but in April, a 37-year-old woman came forward, claiming to be one of the three winners of the record $656 million Mega Millions payout, but was unable to produce the ticket. Sorry, no dice. The ticket has to be present for you to win. Let's look at a few other examples of what lottery winners do wrong, provided by Frank Fantozzi, CEO of Planned Financial Services, and published in Investment News.
They change their lifestyle too much. Rocketing yourself into the stratosphere of the uber-rich may seem fun for a while, but you may later regret losing touch with the common folk who used to be your friends and family.
They don't have a financial plan. Having a road map is essential. Otherwise, it's too easy to spend as if you have a bottomless pit. You don't. It’s a good reason lottery winners don't come forward immediately; they're developing a financial strategy first.
They think they're getting all the money. Up to 50 percent will go toward taxes, so before commissioning the yacht, make sure you know how much you really have.
They don't get professional advice. Attorneys and accountants can save you a lot in taxes and help you design a plan that will not leave you wondering where all the money went after a few years.
They don't follow their own instincts. This may sound counterintuitive to getting professional advice, but it's not. People will come out of the woodwork to offer help, so make sure you choose wisely and find a team that is prudent with an immediate plan as well as one for the long term.
They make stupid investments. See the tip above: Everyone will have a "hot" investment tip. Don't fall for it.
Do you play the lottery? What's your dream if you win?
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mega millions
If I were to hit the Lottery, Like Gary mention up above. I would give the Lord his 10%. Help out my family and friends.Besides God, your family and friends is all you have. So why not share. Then I would help out cancer centers. I was healed from cancerin 1989. The homeless, and see what else comes my way. Oh,my Husband and I would go on a long over due vacation.
MandM--I guess you flunked basic math. You get betwwen 35-40% after taxes if you take it up front. Taking the payments over 26-29 years subjects you to all kinds of monetary and political risk. Inflation will turn those initial payments into fraction of their purchasing power by the time the last one is paid. Better to take the lump sum and give it to reputable money managers. As long as you act like an adult with your spending habits; you should be able to have a nice annuity for the rest of you life.
You literally have to be a complete idiotic fool to lose all your money after winning the lottery.
You don't need lawyers.. you dont need financial planners.. all you need is basic common sense.
BobC hit the nail on the perverbial head! Hey JamesT, feel free to exercise your freedom to LEAVE. We don't need you and we won't miss you! Also take as many like minded people with you as possible. JamesT I would have thought that someone who dislikes this nation as much as you do would be gone by now. Why are you still here?
Call me nuts if you will, but God only asks for 10% of your income. (It is ALL His money anyway!) Since I am "pig rich", why stop at 10%?? Would I line comfortably? You bet but don't be a fool and give up your dear friends and loved ones over green paper. You will NEVER see a hearse pulling a U- Haul Trailer!! Be wise, enjoy your gift but above ALL, Bless as many in need as you can and keep the things that money cannot buy! Friends, loved ones and above all, your relationship with Jesus!! By the way He doesn't tax you!!
The supposed mega millions winner in maryland say's she has now lost the ticket..this comes one week after saying she will not split with her co-workers from mcdonalds who were supposedly in a lotto pool with her..now this is either another ploy by her to state that she has lost the ticket..or she really has misplaced it and will wallow in her sorrow for the rest of her life if she does not find it in 180 days..Hmmm sounds like karma is starting to kick in in Baltimore, Md
Hey JamesT - don't let the door hit you on the ass on the way out. Finland's loss is AMerica's gain
I would the money invest some in a swiss bank, and take the rest as i need to and leave this garbage of a nation arm pit of the world and move to Finland.
If I were to win the big one, I would not take all of the money up front, but would take it in 25 yearly payments. With Power-ball you get 10% of the jackpot u front and the rest in equal payments over 25 years. Why, you are guaranteed the money for 25 years, you can't blow it all in only a few years.
Many will claim you will make more by investing it, ask the people who lost it in the last 3 years due to the economy.
My way there is no chance of someone taking the money from you. Some claim that if you die the state gets the money not paid out yet, that's wrong, it becomes an asset of your estate and goes to whoever you sat in your will.
mmmmm...there are two reasons lottery winners have problems.
1) Most of them are stupid
2) The "sharks" (planners/advisors etc) take advantage