What does Mark Cuban know about winning the lottery that winners don't? Answer - a lot
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Billionaire and investor Mark Cuban surprisingly advises lottery winners: “Don’t invest your jackpot.”
The reason for this startling piece of financial advice is based on the fact that he considers few winners know much about investment.
The good thing - like the other advice he offers in this video, is that Cuban will tell you what to do instead.
Most of us don't really know how to manage such huge amounts of cash. Thankfully we have experts to help us out.
Billionaires like Cuban are pretty happy to offer their advice to new lottery winners, and it might be a good idea to listen since they know what to do with large sums of money.
But Mark Cuban's advice might just surprise you.
Mark Cuban is an American entrepreneur who started the video portal broadcast.com, although you might recognize him more for his appearances in the tv show Shark Tank.
He's currently worth an estimated $4.6 billion.
However, in some ways his advice is totally different from what everyone else thinks.
There's one bit of common advice he agrees with - hire good tax attorneys straight away.
Most other experts advise adding a good financial manager, but he's basically saying experts really can help and they're pretty important.
An expert could definitely ensure we get a lot more money out of our big win than we could on our own.
His next bit of advice is to not take the lump sum. You've no doubt heard those words of wisdom before.
Experts often say that for a very simple reason. You don't want to blow all that cash in the blink of an eye.
You'd be surprised how easy it is to spend millions without realizing it because you're so used to living on a lot less money.
Next, you can't spend it all if you don't take the lump sum. Choose annuity payments instead.
Then you have a steady stream of cash coming into your bank account for years. It's enough to keep you happy, but it stops you from making insane purchases.
Cuban thought it would be important to mention if you weren't happy before winning the lottery, you can’t expect to be happy after winning.
The old saying is ‘money doesn't buy happiness’ and Cuban seems to agree. But he also says if you are happy before you won you'll probably be even happier after winning.
That’s because life gets a lot easier when you don't have to pay the bills.
Family is one of the things Cuban mentions in his advice, but he says you need to learn to say no to them and that includes your friends too.
He said many people are going to be asking you for money and it's important to say no. According to Cuban, if you're that close then you'll know who really needs the money and exactly how much you should give them.
He says you can help some people out, but always talk to your accountant first, and don't listen to anyone who's asking for specific sums like a hundred thousand or a million dollars.
According to Cuban nobody needs that kind of cash for any reason.
Find out all the advice Mark Cuban gives by watching this video.
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