If any of you are going to win the HK$80m snowball jackpot tomorrow, we would strongly advise you to do the followings:
The first thing that experts recommend winners do is to keep quiet. We would recommend not telling people, we wouldn’t necessarily go broadcasting it to the world.
Coming forward too early can lead to hasty decisions and can make lottery winners targets of crime and greed. Lottery winners typically have three months to present their ticket, but they often come forward much more quickly.
Experts also suggest not making any rash life changes. Nearly one-third of lottery winners eventually declare bankruptcy, and lottery winners are more likely to declare bankruptcy within three to five years than the average person.
That’s often because winners can become reckless with their newfound wealth. In order to avoid a harsh fate, lottery winners should not make any hasty decisions.
“If you’re not disciplined, you will go broke. I don’t care how much money you have.”
Take the lump sum
Lottery winners must decide whether to collect their money in a single reduced lump sum or 30-year annuity payments.
Take the lump but don’t spend it. Pay yourself an annuity and put the excess cash flow to work for you. More money up front means more money to invest and grow.
Put the money to work by investing in “low volatility, dividend paying stocks.” Take the lump sum, because if you manage it well and invest it wisely, you could end up with more money over time.Watch your spending
The biggest mistake you can make if you come into that much money, is drastically changing your spending habits.
“Just Google ‘lottery winner goes bankrupt’ and you’ll find dozens of horror stories about lottery winners who strike gold, only to lose it all within a year or two,” (Indeed, many lottery winners go broke as their spending spirals out of control.)
“Blowing through hundreds of millions of dollars might seem like an impossible task, but it can happen quick with bad habits,”