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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
So can anyone tell me why the hell they say the lottery is XX amount, and if you win, they take half, instead of what the ACTUAL tax rate is for where you live?
I am really surprised that no advice in this article included paying off pre-winning debts or only purchasing things one could pay off in order to prevent incurring new debt. How about maintaining cash savings in safety deposit boxes independent of bank accounts or investments, just in case. What about purchasing stashes of gold silver or precious gems (not jewelry but bars coins or unset gems).
I would pay all my bills buy a 3-4 bedroom house with a pool buy a honda pilot and put money for the cancer society my dad died of cancer for them to find a cure and money for the humane society cruety to amimals i hate
start a match making service to help people find true love
If I won enough money I'd set up a scam to trap Sean Hannity and Rush Limbaugh. After they invested their life savings I would cause it to bankrupt and then laugh in their faces.
A mink fur-lined kitchen sink, diamond-soled shoes and a gas powered turtleneck sweater......are among the more sensible things I would buy
Plan wisely and live within your means.
Just remember who was there for you when you had nothing. Forget all the ones that were not there for you when you had nothing. Especially blood related family. My immediate family will get ZERO.
I would take care of my family!! My Kids, My Grand Children !!, I would take care of the things I needed. Then I would go around and help the people who deserve it. Then I would go help all the Animal Shelters. Set up a huge fund for animals that were abused and start my own shelter for all the animals! Iam a pet lover so the most of the money as you would say would go to the dogs and cats!!
i would spend it ALL!!!!!!!!!!!!!
open and accept the money under an LLC. Then you don't have to pay taxes twice if you want to give some of the money to friends/family. Just make them owners in the LLC. Have an accountant organize it for you. Have a Lawyer draft a non-disclosure agreement for anyone getting money from you. Set up a trust in Cook Island or the Caymans. Have that trust leverage 100% of the equity from the LLC. Then you are protected from law suits. OWN NOTHING, CONTROL EVERYTHING.