Winning the lottery for most is a dream come true. Sometimes winning the lottery can be a nightmare for some. We always dream of what we would do if we won the lottery. We imagine the bills we could pay off and the money we could give to help our family, friends and people in need. One thing we do not ever think about or imagine is the catch that comes with winning the lottery. If something is too good to be true, then it probably is. Have you ever dreamt of winning the lottery?
A dream comes true.
A dream come true is hitting the lottery when it’s a huge jackpot and having all this money. We think about the bills we could pay off and being able to buy anything we ever wanted. We also imagine all the people we could help, giving money to our families, and even helping churches and charities. We imagine our lives being so worry free due to not having to worry about money. Most problems and stress occur around financials. If we took money out of the equation, we would have less stress and problems, or so we like to think. Do you think money can buy happiness?
The truth of the lottery.
The odds of winning are very low but let’s say you hit the big jackpot. You will need to decide if you want all the money now or if you want it paid out to over 20 to 30 years. Most people want their money now, but there’s a catch (there’s always a catch). Taxes on all the winnings at once will be very high. Also, now you have a huge potential risk. You have all this money in your bank account or at your disposal. This means you will opt to spend some if not most of it right away. There is also a risk if something was to happen to the bank your money will be over the amount that the FDIC (Federal Deposit Insurance Corporation) insures. One big issue is trying to maintain your privacy. Unfortunately, the lottery will have to give your privacy information out. For example, like your full name, age etc. In doing so the media will try to reach out to interview you so everyone will know your story and who you are. You will also be contacted by charities and so-called investors to help you manage your money and cut down on taxes. Do you think winning the lottery can be more stressful than it is worth?
Money only goes so far.
After the government takes their share of the winnings you will be surprised how much you are left with. Then you want to pay off your bills. You want to buy a new house, car, and furniture. Now you promised your family and friends that you would give them some money. Which isn’t much, but you are able to give a little bit. You think that if you didn’t help a charity or someone in need then you will be cold-hearted, so you donate a little to them. The money you were hoping to save or invest is pretty much nonexistent. The money you thought you had so much of, you will quickly realize it’s not as much as you think by the time you dish it out to all these things. Would you donate money to charities and give some to your family if you won the lottery jackpot?
The smart thing to do!
First thing, if possible, stay under the radar. Invest most of your winnings. Do not do it through someone who called you up on the phone! Get an honest financial investor/financial advisor. Never pay everything off and never buy a lot of big-ticket items (cars, boats, RVs, houses, etc.)! Paying everything off, especially if you are still building credit or have poor credit can hurt your credit even more. When investing, invest not only in stocks, bonds but also in a 401K, or Roth IRA (your financial advisor or investor can help you with this. Watch your spending, the money will go fast, but do not be afraid to give some to charities. Two pros to charities, one you are helping an organization that does some type of good work (you can do your research into one you believe in), two tax write off especially after having to pay taxes on the income (lottery jackpot) you just got. Would you invest any of your lottery jackpot money?
What I would do.
I want to say I would be smart with the winnings but honestly, I don’t know. Money does make a lot of people do strange stuff. I would hope I would stay under the radar, and not too much of my personal stuff would be leaked. I would defiantly invest a lot of it, if not most of it. I would like to help my family and give some to charities. I know the money goes fast but I would hope I would be smart with it. I might not be able to give money to my family right away, but I would invest it to make some money before giving to my family. I guess I would have to be in that situation and actually play the lottery.
What would be the first thing you do if you won the lottery jackpot?
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