You Just Won the Lottery! Now What?

A step by step guide after hitting it big --------------------------------------------------------------------------------------- [The Motley Fool] 4…8…15…16…23… 42. No, you’re not watching a rerun of Lost. You’re now $500 million richer. Imagine for a second, you just won the lottery. Over $500 million…now yours. What would you do? How would you do it? I mean, the possibilities are endless… But the first question you should be asking is: How do I not lose it all? And believe it or not, the odds of that happening are even more likely than winning the lottery itself. In fact, 70% of lottery winners end up going broke within seven years! Unnecessary purchases… Frivolous spending… Your Uncle Eddie coming out of the woodwork to tell you how proud he is of you… And simply bad investment decisions. Bad investment decisions. All of the other stuff you should be able to handle easily. But investing is hard, right? It’s certainly not a sure thing, and with volatility and uncertainty in the market…there is a risk of losing it big. Well…that’s a particularly big worry if you choose the wrong strategy. But let me back up first. [I want to see that investing strategy now!](~/AAQRxQA~/RgRk76BEP4QbAWh0dHBzOi8vYXBpLmZvb2wuY29tL2luZm90cm9uL3NwbGl0dGVyL3JvdXRlL3NmLXNhLTc4LWZzLXNvP2xpZD0wdnl3bWdpdHAxYXYmYXBpa2V5PTVjOGU1MmRkLTFiZWEtNDU1ZS04N2Y1LWQ1NTA2ZTU5MGYyMSZzb3VyY2U9aXNhc28zZW1sMDAwMjc4NyZ1PTIwMzg3OTUwMjImbWFpbGluZ19pZD1lNTkzMGJlMi1jZDhhLTRkMzctYTk4Ny01OWY4YzQyZWYyOGUmbWFpbGluZ19uYW1lPVZhcmlhbnQgMSZ1dG1fY2FtcGFpZ249c2YtbG90dGVyeSZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9zb3VyY2U9c29XA3NwY0IKYwZEGw1jI9dGl1IbdHJpc3RyYW1iYWxkd2luODdAZ21haWwuY29tWAQAAAH5) Let’s go back to that beautiful dream again, your numbers are announced, you’ve just won over half a billion dollars. Let’s go over the four things I think a lottery winner DEFINITELY should consider doing with those winnings. Step 1. Decide what payment to take One investor on Shark Tank is a fan of taking the payments in annuities, so you can keep banking cash away and you’re not tempted to blow it all in one fell swoop. His colleague, Kevin O’Leary, however, takes the opposite approach. Mr. Wonderful recommends taking the lump sum, and start putting that money to work for you instantly with investments, and if everything goes right, the investing returns could be higher than the annuities. Step 2. Plan ahead With this sudden windfall, you might want to start planning for the future, which means getting affairs in order, setting up trusts, consulting with lawyers, etc. This definitely isn’t as fun as the “I’m buying a new speedboat to cruise the waters like Sonny Crockett” step, but this step is absolutely crucial to keeping this newfound wealth. Step 3. Budget Use this time to assess your monthly spending needs: food, housing, family, clothes, and stick to it. With this windfall, you’re subjected to new taxes and payments that you didn’t make before, and you’ll want to hammer down what’s left after Uncle Sam. Determine what new expenses might be important and necessary for you: a new house? Paying for a child or grandchild’s education? Fixing up that dream car you wanted when you were 16? All of this is possible with this important step. Step 4. Invest! Now here’s the hard part. How do I sustain this windfall? Invest in an Index Fund? Throw it in a Money Market Account? Hide it under the floorboards? And with relatives and friends coming out of the woodwork, it’s hard to know what to do and who to trust… Which is where The Motley Fool comes in. Because we have a 25+ year reputation of making investors smarter, happier, and richer by investing with us. Using the long term buy and hold strategies made famous here at The Fool, investors have seen returns like: - Amazon, recommended in September 2002, up 17,355% - Tesla, recommended in November 2012, up 13,866% - Netflix, recommended in October 2004, up 9,526% - Nvidia, recommended in April 2005, up 10,416% Of course, those are some of our best performing picks, and not every pick has performed as well… And I won’t sugarcoat it, some stocks have even dropped in value, which is not uncommon in this volatile environment. But you see, by buying these stocks early, and holding on to them for the long term, investors who followed along were able to secure and grow their wealth…the exact strategy any lottery winner (or any investor, in our view) would benefit from. But by targeting great companies to buy, you can sometimes also secure short term gains, as seen with our June 2022 recommendation, already up 32%. What’s more…you’re $500 million richer…it’s hard not to let that impact your strategy and mentality…and having a helpful guide like The Motley Fool in your corner could make all the difference. We’ve helped millions of investors weather the storms of recessions, downturns, inflation, and uncertainty for a quarter century. Staying grounded and following the of The Motley Fool could be the most important step after hitting it big…making sure that you don’t fall into that 70% statistic. And here’s the kicker… You don’t even need to win the lotto to make The Motley Fool work for you! Getting started investing alongside us right now could jumpstart your journey to wealth and financial freedom! So to see what The Motley Fool can do for you right now…simply follow along below. [I want to access The Motley Fool now and get started investing](~/AAQRxQA~/RgRk76BEP4QbAWh0dHBzOi8vYXBpLmZvb2wuY29tL2luZm90cm9uL3NwbGl0dGVyL3JvdXRlL3NmLXNhLTc4LWZzLXNvP2xpZD00ZmExb3AxdzQ3YnYmYXBpa2V5PTVjOGU1MmRkLTFiZWEtNDU1ZS04N2Y1LWQ1NTA2ZTU5MGYyMSZzb3VyY2U9aXNhc28zZW1sMDAwMjc4NyZ1PTIwMzg3OTUwMjImbWFpbGluZ19pZD1lNTkzMGJlMi1jZDhhLTRkMzctYTk4Ny01OWY4YzQyZWYyOGUmbWFpbGluZ19uYW1lPVZhcmlhbnQgMSZ1dG1fY2FtcGFpZ249c2YtbG90dGVyeSZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9zb3VyY2U9c29XA3NwY0IKYwZEGw1jI9dGl1IbdHJpc3RyYW1iYWxkd2luODdAZ21haWwuY29tWAQAAAH5) To your wealth, [Eric Bleeker] Eric Bleeker The Motley Fool Returns as of August 24, 2022. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Bleeker has positions in Amazon, Netflix, and Nvidia. The Motley Fool has positions in Amazon, Netflix, Nvidia, and Tesla. How did you like this email? 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