Is your plan ready for when you win the lottery? Both the Powerball and Mega Millions jackpots are above $400 million. Money Manager and CPA Bill Denby has clients who have won the lottery and has some advice. "One of the first things you should do when you win the lottery is: DON'T TELL ANYBODY! Because when you do disclose your identity, you become a target for family, friends, charities and criminals." Getting professional help from an attorney, Economist and CPA immediately is next.
"Many people suddenly get greedy when they win the lottery. and they start investing money in all sorts of schemes. They put money into every family member's business and even make large loans that will never be paid back." And today's final advice is for when you fill out your lottery tickets. "I advise people to take the lump sum - especially when interest rates are so low. It allows you flexibility, but it does require you to manage that money."
There are broke and unhappy lottery winners who didn't follow that advice and lost it all. Denby's final words of wisdom.
"Can't Win if You Don't Play! --- But remember, you have a better chance of being eaten by a shark than willing that lottery."
Your chances of winning lottery millions is abour 1 in 300 million.
To put it into perspective:
1 in 12.1 million: Becoming an Astronaut
1 in 10 million: Being a U.S. President
1 in 1.5 million: Becoming a Movie Star
1 in 662,000: Winning an Olympic Gold Medal
1 in 11,500: Winning an Oscar
According to CNBC lottery winners are more likely to go bankrupt within 3-5 years than the average American.
photo: Getty