Powerball to hit the 1.5 Billion Dollars on Wednesday 1-13-2016!
The Powerball frenzy is in full swing, most everyone in America is trying to get their piece of the American dream. With the Jackpot projected to exceed 1.5 Billion, yes billion with a B, it is going to break all worldwide records for a lottery.
So the big question to me is….winning that much money what do you do with it. Get all the cash upfront in the lump sum or take the 29-year payout? I have always had the mindset that I would take the lump sum, pay the huge tax bill and be done. I mean after all, 29 years in a longtime. Being 50 one might say I will run out of time before the payments are complete.
Well known billionaire and “Shark Tank” super star Mark Cuban recounted the day he became a billionaire on an episode of James Altucher’s podcast. He stated “The million was fun because it was a drinking million, right. It was, “On my god, I’m going to love this, my life has changed, but I got to keep on working because I haven’t hit my goals yet, and there’s so much more I want to do.”
The billion was, “I can’t $%^&* believe it.” Literally, I was sitting in front of a computer, naked, hitting the refresh because we were close, waiting until my net worth hit that billion when the stock price got to a certain point, and then I kinda screamed and jumped around and then got dressed.”
The billionaire and “Shark Tank” star gave this advice on The Dallas Morning News:
- Hire a tax attorney first.
- Don’t take the lump sum. You don’t want to blow it all in one spot.
- If you weren’t happy yesterday, you won’t be happy tomorrow. It’s money. It’s not happiness.
- If you were happy yesterday, you are going to be a lot happier tomorrow. It’s money. Life gets easier when you don’t have to worry about the bills.
- Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs 1m dollars for anything. No one needs 100k for anything. Anyone who asks is not your friend.
- You don’t become a smart investor when you win the lottery. Don’t make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won’t lose money.
Sounds like solid advice, but I think I will still take the lump sum when I win!
What would you do?
Photo: Getty, via Business Insider
The exchange, posted Altucher’s Tumblr, begins at 42:45