UNITED STATES — The Mega Millions lottery jackpot is larger than it’s ever been in its history. What do you do when they announce your winning ticket?
Disclaimer: The Black Loop isn’t a financial adviser. Before making any decisions regarding your winnings or actions, ensure to first seek financial counsel.
Many winners tend to lose all common sense and are consumed by the overnight success. HOWEVER…
1. If you have the winning ticket, it’s best you’re the only person who knows it.
In your excitement, you want to tell somebody! We know.
But, everyone has someone they trust to keep a secret. While you have one person you trust with anything…so does that person, and the person that person knows…and the person THAT person knows.
Before you know it, someone’s hitting you up with some “hearsay” from the streets.
The best way to keep your newfound wealth “hush hush” until you’re ready to make it known to the world… is to simply keep your lips shut about it. Not a soul.
2. You probably shouldn’t claim it immediately.
You need time to process your newfound wealth. While it’d be nice to head up to the lottery commission to collect what’s rightfully yours, it’s not wise for various reasons.
First and foremost, the heat is far too hot immediately after the win.
Everybody wants to know the identity of the winner; everyone will be watching the commission’s news releases for press conference dates.
Hell, criminals will be staking out — awaiting your unhinged, non-thought-out, next-day arrival to the pickup location.
If immediately collecting your winnings is all that’s on your mind, you’re already about to lose everything.
You should wait a while, and let the heat die down a bit — a few months or so.
But on a less dangerous thought, you just need time to develop a plan for your winnings. YES, YOU NEED A PLAN.
There are too many past lottery winners who are now broke two to three years later, simply because they had no plan.
3. Annuity or lump sum?
That’s the big question in states that allow the option.
While it’s an enticing idea to get all of what’s yours in a cash option, is it really the best choice?
Most people shun the annuity concept because they don’t want to wait on their cash. However, it’s not “waiting.”
It’s “working the system,” if done right.
You see, an annuity is also seen as a “source of income.” Even if you got the lump sum and stopped working, banks look at you and say you have no cash flow.
Why is that important though?
Well, rich people — “the 1%” — don’t spend or use their own money. They use other people’s money to continue making more money.
Millionaires…multi-millionaires…billionaires, none of them became that rich by spending their own money to accomplish whatever they wanted.
They make their wealth work for them. Hence — if you’re young and have a lot of life left to live — an annuity keeps you from blowing all your winnings within the first few years, if you have zero self-control.
Likewise, as aforementioned, it looks good on your financial report. A Black Card would be nothing to obtain. Real estate loans. Whatever. The world is yours.
Unless you just want to pay cash for everything. In that case, lump sum it (shrugs).
4. Set aside a specific amount for family, friends, and donations.
At this point, you’re richer than several celebrities you know, combined. Overnight, you’re literally treading on the heels of “Jay-Z and Beyoncé” wealth.
So, in droves, people who know you and know your face, will come with every sob story in the book. You’ll want to help them all, and many of them you will help. However, in also keeping to generational wealth principles, you have to think about your family and kids, their kids, their kids’ kids, their kids’ kids’ kids, etc.
You think Jay-Z and Beyoncé became a “billion dollars in an elevator” by playing to their emotions every time someone asked for help?
No. They have charities, foundations, etc. set up to help allocate a certain percentage of funds to those willing to go through the process.
If they’re not willing to go through the process — and are just there with their hands out — again, #Sorry…#NotSorry.
5. Might think about changing your name…hell, your whole identity if possible.
Your name will be the biggest headline in America. Everyone will be looking for you after the press conference.
They’ll look up addresses. Phone numbers. Social media accounts. Run background checks. Anything they could think of to get in contact with you…..to get to you, they will do.
If you’ve never watched any post-years lottery testimonials, you probably should do that. There are some horrifying stories floating around the winner’s circle. It’d be best to learn from their hard-fought lessons.
Nevertheless, what are your thoughts? If you have any comments, feel free to share them via our Facebook page.
And if you’re the winner, congratulations!…….What’s good, Fam!? 🙂
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[Featured Photo via Twitter]