If you should win the lottery, what would be the best way to handle the money so u lose less in taxes; U How to invest or to use the most profits. Also, how to deal with family and relatives who want a piece of the profits?

 

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  • If you win the lottery, it’s probably not possible to dodge taxes. If you win the lottery, you have to pay taxes on it.
    To use the earnings, I suggest you pay down all your debt, invest some, and use the rest of the money to do whatever you dreamed of doing.
    If some other relatives want a piece of your winnings and you want to give them some money, be sure to not give each person more than $10,000. If you do, you will have to pay a federal gift tax of 40% or more. If you don’t want to share the money, you can always hide the money in a swiss bank account.

  • First I would pay off any debt that I owe. Then I would save a good portion of it for retirement; then keep another portion to live off and the rest I would give it to immediate family members something like 200,000 per family and after that whatever is left over give to charity.

  • i would turn it over to a team of my investment manager, my attorney and tax planners and I would put some in a charitable remainder trust, managed by my asset manager for high returns and I would pay an income to my immediate family out of those returns so that they would not have to ask me for the money.
    I would not spend any of the principal, only the return on investment.

  • If You won a lottery, you maybe need to
    1) Read some book about investment and personnal growth.
    “Grow rich with peace of mind” – Napoleon Hill is book which every rich person should read. Warrent Buffet is one of the
    investor in the world. I was a stock broker for long time but I didn’t know how to invest until I read some books about him. (He didn’t write any book by himself. Other people write about him)
    2) separate the money into equal 4 portions and investment them coming each 4 years. It can average it out your cost of investment because the small economic cycle is 4 years (the big one is 10 years). And you can learn more investment when you are investing.
    3) In first year, 11% of money is invested in index fund. In average, the return of index fund is better than other fund.
    Other 11% is invest in real estate, maybe your 1st house. But, don’t borrow any money from bank if the 11% is more than US$1 million. 1% is for your living and 2% is for charity.
    Don’t touch the rest 75% in the 1st year.
    4) Thousands of people will ask you for money. Thousands of chariteis will call you. You just don’t give any one any money in 1st 3 months and don’t promise anything to any one. In the 1st 3 months, you know who are your real freinds and who really just want your money.
    It is very difficult to do above things but it is a test for your ability of handling money.

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