My father-in-law had a habit for decades – every Saturday he bought a few lottery tickets and then excitedly told everyone what he would buy after he hit the jackpot. These conversations usually ended immediately after the next drawing. He passed away over a year ago, and his biggest win was still 20 bucks.
Mathematics and probability theory give us a cold shower about the chances of winning the lottery – it’s about 1 in 13,983,816 in the case of only 6 balls (without any powerballs), but excitement and fantasy make many of us take risks anyway. In the end, it’s not so much the wealth that matters, but the anticipation of it. And advice on how to spend the huge amount of money that unexpectedly fell on us.
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In case you hit a huge lottery jackpot, don’t rush to brag and spend big – just think wiser!
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This dad from Canada once went viral with his reasonable video of financial planning advice
Rod Oracheski, a Canadian dad, gamer, and devoted hockey fan, as he introduces himself on hisTikTokaccount (God bless America, we still have achanceto watch his and other folks’ videos!), once went viral with his purely weighed roadmap for anyone who’d just hit the jackpot or got any other sheer wealth.
Image credits:rod_oracheski
Rod advises you to immediately contact a trusted lawyer – and best of all, some good and expensive law firm (damn, you now have money to pay for their services!) so that they can represent your interests. If you want to share some of the money with relatives or friends, allocate about 15%-20%, and fix it on paper with a lawyer.
So the main idea is to ensure your financial stability first with smart investing
Then the author of the video recommends spending part of the money on ensuring yourfinancial securityfor the coming years and decades. In other words, investing in US treasuries or buying government bonds (if you live in America or another G7 country), shares and stocks of reliable companies.
Image credits:Erik Mclean / Pexels (not the actual photo)
Next – setting up a series of trusts that help with higher education, purchasing a first home and whatnot. And only then, when you have provided yourself with a certain “financial safety net,” can you startspendingthe remaining money at your own discretion – houses, cars, wedding gifts to your friends and other things like that.
Image credits:Alexander Grey / Unsplash (not the actual photo)
Investing in real estate could also be quite risky, and so is crypto
Well, in any case, the advice from Mr. Oracheski is very rational and thoughtful. After all, even an investment in real estate can be unsuccessful. As, for example, happened to Edwin Castro, the owner of the largest jackpot in the history of lotteries, whorecently losthis $3.8M Malibu home in the Palisades Fire. A smartly built investment portfolio is almost a guarantee of preserving or even increasing your winnings.
“There is no guarantee the funds on these shortlists will perform better than those that are not. But at the very least, having a look can help give you investment ideas,”this articlefrom The Times says. As for investing in cryptocurrencies, their volatility has already becomelegendary, so if your goal is to provide yourself and your descendants with a comfortable future, it is better to choose something more classic.
You can watch the original video here
As for the commenters on Mr. Oracheski’s video, many folks thanked him for his sensible advice, although they noted that 15%-20% for family and friends can be a hell of a lot. Depending on their mood, some responders are willing to give away even just 1% of their probable winnings. And the wisest people thought the first piece of advice was to simply keep everything a secret.
However, some commenters also noted that no matter how reasonable and balanced this strategy may seem, the main problem here is, well, winning the lottery. “Why did I save this as if I am ever gonna get $50m,” someone wondered quite wittily. But, well, money can come to you not as a result of winning, but as a completely unexpected inheritance – as it happened, for example, with the hero ofthis storyof ours.
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