Have you heard about the US Powerball? With over $1.6 billion to give away it’s gargantuan money.
But we’ve all heard the stories of people that win the lotto and then spend the money foolishly.
So here’s some advice from tech billionaire Mark Cuban on what to do if you ever find yourself landing a big sum of money – either through lotto an inheritance or maybe a bank heist.
1. Hire a great accountant
No matter, how good your accountant is you’re still going to be paying so much tax you could pay for a fleet of submarines…but still, do what you can to keep some!
Hot Tip: I would get the accountants fee structure in writingbefore telling them you just won $100’s of millions of dollars….
2. Don’t Take the Lump Sum.
This way if you blow it all on high living in the first few months…at least you’ve got plenty more to come.
There might also be favourable tax advantages to getting it over time.
3. If You’re Miserable Today, You Won’t Suddenly Be Happy.
However, you will be able to have some pretty amazing experiences, and live in a great environment, and quit doing your job (if it makes you unhappy) all of which can improve your quality of life.
Money solves the problems that not having money gives you.
This guy is now $500 Million richer!
4. If You’re Happy Today, You’ll Be a Lot Happier Tomorrow.
5. Tell All Your Friends and Relatives No.
Mark says: “Anyone who asks is not your friend.” I don’t know if that’s true or not, but I can imagine a lot of people wouldn’t go with this one.
Mum: My cars a piece of crap. Can you please buy me a BMW.
Mum: Wtf! You’ve just won, $500 Million.
I gave birth to you! I fed you for 18 years.
You lived in my house till you were 24 – eating everything!
You owe me, you little #%&!
Tough conversation to have with your mum.
6. Just Because You’re Suddenly Rich, It Doesn’t Mean You’re a Great Investor.
There’s nothing wrong with just putting the money in the bank, says Cuban.
Sure you might only get 3% on the money, but then 3% on $500 Million is $15 million a year!
I’d still much prefer to invest it, because I love investing…and with the right allocation of capital it would be possible to turn that money into a great legacy and philanthropic vessel.
The key is to get the right advisors, and education.
Let’s be real though. The chances of winning Lotto etc. are like getting hit by lightning twice. That’s why it’s far better to focus on mastering a game you can control – like property investing.
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