Warnings from financial advisors grow with Mega Millions jackpot
What’s the first thing you should do if you’re lucky enough to win the more than half-a-billion dollar Mega Millions jackpot later this week?
Ask any financial advisor and they’ll give you the same answer: “Nothing.”
At least in the beginning.
Since no one has come forward with a winning ticket for Tuesday night’s Mega Millions drawing, the pool has grown to an estimated $560 million, or $281.1 million if it’s taken as a lump sum, making it one of the top 10 largest Mega Millions jackpots ever. The largest jackpot ever awarded was $1.54 billion in October 2018.
The next chance to win the Mega Millions jackpot is Friday.
Of course, the odds of winning the grand prize are slim, at about 1 in 303 million, according to Mega Millions. So that $2 ticket is more of an invitation to dream than an investment.
Furthermore, even beating those mind-bending odds doesn’t guarantee happiness or long-term financial security. According to the Certified Financial Planner Board of Standards Inc., nearly one-third of lottery winners eventually go bankrupt.
But let’s say the gods do smile upon you on Friday and that last lottery ball falls your way. Or, more realistically, what if you suddenly come into a large sum of money in some other manner, like an inheritance, a signing bonus or the sale of a business? What’s your plan for the windfall?
“The first thing we recommend if our clients experience a sudden and unexpected windfall of money is to do nothing,” said Brian Hartmann, partner at Granite Bridge Wealth Management, part of Osaic. “When a large amount of money is received, life and the decisions that need to be made all seem to hit the fast-forward button. Families should plan to step back from their normal day-to-day activities and
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