What You should do if you Win the 266 Million Dollar Mega Million Dollar Lottery

 

A while ago there was a great buzz on all the social media networks about the 266 million dollar mega million dollar lottery. My Dear friend Jenn Byrd posed the question on facebook and most of the responses centered around, giving to charity, giving to famly, investing for the future, disconnecting phones and hiding from friends and family. So here is what I would do.

Take the lump sum of $165.2 million. The lottery offers either payments or cash up front. News flash $266 million over 25 yr is worth much less than $165.2 million now. A bird in the hand…as the saying goes. If you do this correctly you will be providing for your grandchildren’s grandchildren.

First rule – Protect your fortune from taxes and lawsuits

I would put myself in the enviable position to own nothing but control everything. This is important. If I don’t own it I can’t be sued for it. I don’t want houses and cars and businesses in my name. Don’t worry, I still call all the shots but my assets will be owned by entities not me.

Second rule- take a minute to learn the rules of investing

What is taught as financial literacy today by investment firms is hot garbage. Exposure to the stock market is the easiest way to go broke quickly. A proper investment is one where you can not lose money, returns are guaranteed, there are no penalties for using your own money before 65, there is liquidity and control, it is lawsuit protected, you can leverage it to create more wealth, tax deferred, tax free on distribution, and transfers to heirs tax free upon your death.

Third rule – sometimes the best way to keep something is to give it away

The tax laws are great for wealthy givers. I will sit down with an estate planner and a tax planner(not a tax preparer) They can create a structure that will allow you to give money away to charitable organizations and still get some incredible benefits from the money.

Fourth rule- love is unconditional, giving away money isn’t. If you are going to give money to family make sure it is paid back.

The way to make sure money is always paid back is to get an insurance policy on the life of the family member I lend money to. Remember this money isn’t my money its my grand kid’s grand kids money so its got to grow and be there. Everybody is going to die so why not have a million dollar policy on all family members to fund the family trust. The proceeds are completely tax free and sure to pay off because we all have to go sometime. Having large policies on the whole family allows you to take a smaller amount of money and turn it into a huge payoff in the future. If that money goes in the family trust the interest can provide trust fund payments to heirs for generations to come.

BTW, these things are what you should do even if you didn’t win the Mega millions. lol

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