The national lottery, Mega Millions, broke through the $1.1 billion mark after Friday’s draw with no major winners.
Ahead of Tuesday night’s next drawing, a financial pro has revealed what players should do when they land a windfall.
New York resident Haley Sacks points out in a TikTok video that 70 percent of lottery winners go broke, but there are six simple steps you can take to avoid bankruptcy.
First, she says the most important thing winners should do is not tell anyone, not even family members.
New York resident Haley Sacks points out in a TikTok video that 70 percent of lottery winners go broke, but there are six simple steps you can take to avoid bankruptcy
Sacks’ other recommendations include keeping your winning ticket safe and hiring an attorney
Don’t go broke: Ms. Dow Jones’ six tips for making the most of your lottery win
New York resident Haley Sacks points out in a TikTok video that 70 percent of lottery winners go broke, but there are six simple steps you can take to avoid bankruptcy.
1. Don’t tell anyone: To avoid raising suspicion, it’s important for winners to “keep your cool and not quit your job,” says Sacks.
2. Be more private: This includes deleting your social media, creating a mailbox, and changing your phone number
3. Keep your ticket safe: take photos and make copies of it before depositing it in a safe deposit box
4. Hire a Lawyer: A lawyer will help you claim your winnings through blind trust so you avoid any press
5. Get a financial advisor: They can help with government planning and investing
6. Make sure you invest: Put at least 50 percent of your profits into a low-cost index fund on the market and hire an accountant
Sacks, who uses the name @MrsDowJones, says to avoid raising suspicion, it’s important for winners to “keep cool and not quit their jobs.”
In second place, she emphasizes how important it is as a multimillionaire to become more private and to hold back.
This includes deleting your social media, requesting a mailbox, and changing your phone number.
When it comes to what to do with your winning ticket, Sacks recommends taking photos and making copies of it before putting it in a bank safe deposit box.
When it comes to legal matters, Sack’s fourth tip involves hiring an attorney.
The finance pro says a lawyer will help you claim your winnings through a blind trust so you avoid any press.
Regarding this topic, FindLaw.com explains that only a handful of US states allow lottery winners to remain anonymous.
However, if you place your winnings in a blind trust, only the name of the trust and trustees will become public. This prevents you, the lottery winner, from being overwhelmed with personal cash requests.’
At number five, Sacks highlights the benefits of having a financial advisor as they can help with estate planning and investing.
Continuing the investing theme, Sacks says this will be the “key” aspect of maintaining and growing your winning pot.
Presenting her sixth tip, she says, “Put at least 50 percent of it in the market in a low-cost index fund and hire an accountant to help you with taxes and donate money to family and charity.”
At the bottom of her TikTok sack, it concludes, “If you do all this, you’ll be in the 1 percent instead of the 70 percent of lottery winners who go bankrupt.”
To date, Sacks’ video, released as the Powerball jackpot climbed to $1.2 billion last November, has been viewed more than 2.5 million times.
Sacks says a financial advisor can help with estate planning and investing, and she emphasizes the importance of investing to preserve and grow your profits
Many viewers said they saved the video in hopes of winning the grand prize, while some commenters said they were unsure of Sacks’ picks.
Creator @SamMullings wrote, “Wait, if you delete your social media don’t you think that will make your friends and family aware that something has changed.”
And @ndirishmom commented, “I could never shut up when I win!”
Meanwhile, @MikeCK said that if he landed, the winning ticket would be “retired the MINUTE the check was cashed.”
The next draw for the Mega Millions is scheduled for Tuesday 10th January at 23:00.
It’s the third largest grand prize in Mega Millions history, now at $1.1 billion, with a $568 million cash option.
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