Posted on 01/12/2016 7:25:22 AM PST by Rockitz
The Powerball lottery has reached a record high of $1.4 billion.
On Wednesday night, someone might win the jackpot and — even if they don't actually take home $1.4 billion — become incredibly rich in a matter of moments.
Billionaire Mark Cuban has some idea of what that's like.
Cuban recounted the moment he became a billionaire on an episode of James Altucher's podcast: "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."
Years later, what would he advise a newly minted multimillionaire or billionaire?
Business Insider reached out to Cuban to ask about his tips for potential lottery winners, and he shared the advice he gave his local paper, the Dallas Morning News:
1. Hire a tax attorney.
2. Don't take the lump sum. You don't want to blow it all in one spot.
3. If you weren't happy yesterday, you won't be happy tomorrow. It's money. It's not happiness.
4. 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.
5. 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 $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend...
7. Be nice. No one likes a mean billionaire.
(Excerpt) Read more at finance.yahoo.com ...
I heard once that the lottery is just another tax on stupid people. Good luck to all.
If Cletus wins, he will immediately file proper paperwork for POTUS (Republican) and challenge Trump to a war of words!
Damn, this is fun.
Hmm. I said I’d not take the lump sum, but here’s Mark giving the same advice. I may have to re-think my position...
8. Buy a gorilla suit. Pronto.
All seem good except 2. I would be hesitant to trust a continued payout from a single government. I’d rather have the lump sum to place into a small and manageable collection of geographically dispersed investments.
take a lump sum
renounce us citizenship and go to a tax free haven
dont tell anyone where you are
dont talk to cuban gates soros or buffett
buy a few politicians
get bodyguards
support conservative causes and charities
live the life
goes without saying you care for your family
Maybe...and I see people spending hundreds of dollars who seem like not the type who have it to spare. That said, spending 2 bucks at any chance to win a billion is pretty hard to pass up. I disagree with Cuban in the lump sum department...take the money and run...to a Swiss bank!
Personally I would take the lump sum.
Don’t trust the promise of payments...see Illinois lottery.
I admit it... I gave my donation...... tell me you didn’t buy a ticket... it’s fun to dream. :)
His advice seems real good. The only thing I’d question is “don’t take the lump sum”. Can anyone really trust that the annuity will be there until it’s paid in full? Besides that, especially senior citizens, spending it sooner rather than later just makes sense.
What’s the tax rate going to be next year or the year after that? And you KNOW it’s going to be higher 10 years from now. Take the lump sum pay out.
“No one needs $100,000 for anything”
Speak for yourself
I do
Great advice. Tomorrow I will sit naked in front of the computer naked and watch the drawing. If my wife complains, I will say that Cuban did this when he became a billionaire. If the balls don’t come up I will say that I got locked out of the bathroom with my bathrobe inside.
I would guess it depends on how old you are.
I don’t know about not taking the Lump Sum, didn’t Illinois basically say they can’t payout their Lotto winnings? Better get everything you can upfront, because there are no certainties down the road.
No matter how old I am, $35 million would spend just as well as $651 million, and there'd be a revenue stream for the kids and grandkids to have but not abuse.
If you can't trust the multi-state Powerball to pay out, then there's a lot more problems in the country that the lump sum wouldn't solve, either.
He left out “try to keep it as quiet as possible.” Put the ticket in a safe deposit box and wait until all the hoopla dies down before presenting it for payment. Perhaps a couple of weeks. You can use that time to meet with attorneys and accountants and to make plans.
I’ll take the lump sum. I can see taking an annuity and for some strange reason there is a gas leak in my house.
Buy a gorilla suit? No. Hire a high school marching band to come to my office and play “take this job and shove it” a distinct possibility. He is right about family. We all know each others business and spare money goes to those in most need. Hire a tax attorney? Depends on whether I want to play around and invest or live on the interest.
As far as destination, not going to any foreign country. They will kidnap me in a flash and demand all the money to return my burnt beyond recognition body. I’m thinking Long Beach Island, NJ although South Padre Island in Texas saves me on taxes. Hey, why not both?
I’d take the lump sum too. If we go into hyperinflation which seems probable with the fiat currency we have, I’d rather have converted it into something tangible before something like that happens. However, I do understand his caution about losing it all in one place at one time. Diversity has always been a key to wise investing.
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