As the mega-millions jackpot soars to over half a billion dollars (that’s billion with a b) the nation is going through a ticket-buying frenzy. The lure of easy money, a life is leisure, the ability to buy anything and everything you want make it virtually impossible for many people to stay away from the ticket machine. Many just want and end to the daily financial struggles they’ve endured all their lives. Be careful what you wish for, though, as there are many problems that come from instant wealth and most people have no idea how to cope with them.
The first problem many people have is a very simple one. When they’ve spent a lifetime working with the resources available to average Americans they simply have no idea how to manage vast sums of money. There are many sciences to it that take years to learn. That’s why it takes so long to become a CPA, a tax lawyer, or the like. When someone wins a large lottery they’ll need to work hard to change their world view. Money changes from a survival necessity to a financial tool they’ll need help managing.
Winners should contact law firms with expertise in working with lottery winners. Such firms should have tax lawyers, trust lawyers, and a host of other resources to handle the situation. Remember: Rich people do not usually handle their finances personally. They let others handle the money so it can be done expertly. The rich person enjoys the benefits of wealth without most of the headaches.
The second problem people have is failing to protect their money and privacy. Winners may make the mistake of failing to immediately sign the back of the winning ticket. An unsigned lottery ticket is like a signed check – anyone can use it. Sign it immediately, make a bunch of photocopies, and store them separately in safe deposit boxes, fireproof safes in your basement, and the like. Secure your winnings from being taken right from under your nose.
Winners also have a tendency to blab about their good fortune. That’s the easiest way in the world to turn your sunny day into a lifetime of rain. Companies exist with the sole purpose of calling lottery winners to ask for endless donations. Distant relatives and old acquaintances show up in hordes to beg for handouts. Charities solicit the winner till doomsday. Winners should let their attorneys represent them in all matters related to the lottery and do everything they can to shield winners’ identities.
Finally, winners often find ways to outspend their new fortunes. Even the current Mega Millions jackpot, huge though it may be, can be spent down to nothing with a few extravagant purchases. Jackpots are not endless reserves. Winners should not rush out to buy mega mansions or mega yachts. They should listen to their advisory team, make wise investments, and live a lifetime of wealth without fear.
