The Mega Millions lottery was up to $630 million, after there was no winner who matched all six numbers on Tuesday.
“I’ve represented in lawsuits 6 lottery ‘losers’ who lost their winnings to various investment scams and whoever wins tomorrow’s drawing will immediately be deluged with offers from financial planners, scammers, friends and family to invest,” Attorney Andrew Stoltman said.
The curse of lottery losers is quite real. Unfortunately, the instant millionaires are often not experienced in managing money as well as basic financial skills, which makes them ideal targets for fraudsters.
These are steps that winners must follow following a big win:
- Buy a Safe and keep the ticket safe The winner isn’t legally recognized until the ticket is handed over the lottery official. If the ticket gets lost or destroyed you are, in the eyes of law, not a winner;
- Do Not Share The News outside of immediate family members: The worst initial decision that a lottery winner may make is to share the winnings with anyone who aren’t immediate family members. “Friends” and others seeking help will pop from the bushes;
- Do Not Take the Lump Sum More than 90 percent of winners opt for the instant lump sum. However, it’s not recommended to do it initially. The spread of the payouts lets the winner in time take investment lessons and apply the lessons. If you make a mistake in the winnings from the first year is not a big deal in the event that the winner is set get another 25 years of payouts;
- immediately form a team consisting of financial professionals comprising lawyers, a CPA and a Financial Advisor recommended by another Professional: Only a few players have an right infrastructure that can handle the possibility of a lottery win. An experienced team needs to be assembled, and quickly. Each team member must be at a minimum , an attorney CPA along with a financial professional.
- Learn the basics of HTML0: Despite having a financial team, the winner has to learn the basics of finance quickly. After this, it’s easier to distinguish “professionals” or others that may try to scam you.
- Make sure the money is safe until a full plan is in place As Warren Buffet says, “Rule number 1 is don’t lose any money.” Since the amount is too big to be protected with FDIC assurance, proceeds must be deposited into an account with a major broker-dealer , such as Merrill Lynch or Goldman Sachs and then placed in short-term U.S. Treasuries until more concrete investment decisions are taken;
- There are no major decisions to make for Six Months It’s tempting winners of the lottery to quit the job they’re in or to immediately spend the money on a house or another major purchase. Don’t. The most disastrous lottery-related decisions made by winners are often the first few choices;
- Trust No One The winner is probably the most targeted by brokers, banks, and scammers across the globe. In the end, no one can be believed to be trustworthy. A number of eyes should be monitoring everyone with any access to money;
- Remove Yourself From Social Media The winner must be taken away from Facebook, Twitter and Snapchat for a long period of period of time.
- If you’re running an office-based pool fundamental steps must be taken to ensure the safety of everyone. Make an BASIC agreement on who’s in the pool and what amount is being invested. One person should pay the money and purchase tickets. Make sure to communicate via email so that there is a note of what was discussed. Some of the most savage legal lottery battles have to do with office pool winners as well as those who were, or were not, a participant in the pool.
- Winners Should Be able to be anonymous:Unfortunately, in most states, lottery winners must reveal their names publicly. This is a huge issue and laws must be amended to allow anonymous winners. In requiring winners to reveal their names published, it makes it a major target for winners, and permits the lottery to utilize the winners as salespersons. The lottery exploits winners to make more money.