How to manage half a billion dollars
NEW YORK (4/3/12)--If you are one of the three winners of that record $656 million Mega Millions jackpot, you're probably exhilarated today. You're also likely at sea about your next step.
The Associated Press and The New York Times (March 28) offered these ideas:
Your advisers can help you decide if you should take the prize in a lump sum or in annuity payments over 26 years. If you have the discipline to stick to a plan, take the lump sum; if you're not sure you can handle that much money and those kinds of decisions, choose the annuity plan.
Splurge a bit, be a little generous to friends and family, but keep a rein on payouts until you get used to being one of the 1%. If you don't settle on your priorities for all that money, you could join the many lottery winners who find themselves broke in as few as five years.
And if you could use some help managing windfalls of the more common variety, read "Make the Most of Unexpected Good Fortune" and "Loans Among Friends and Family: Win-Win or Sure Loss?" in the Home & Family Finance Resource Center.
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