The Powerball jackpot frenzy is huge, as excitement about Wednesday night’s drawing is getting closer. Now that the lottery has jumped to a record-breaking $1.5 billion, it seems that everyone, including those who have never played before, has a ticket in hand. If you happen to be the winner of tonight’s drawing, the stars of Shark Tank has your back, as they are offering up some free advice if you happen to win the big bucks.
Barbara Corcoran and Kevin O’Leary, who are known experts in the field of making money, made an appearance on ABC’s Good Morning America via satellite offering their own advice on what to do with all that cash if someone should have the winning Powerball numbers.
Barbara told her own story of when she sold her $66 million business. She said that right off the bat, she paid her taxes so that she knew what she had left to work with. She then took her remaining $44 million and put it into a bank account, where it was safe and sound. This way of doing things was so that it gave her some breathing room to decide exactly what she wanted to do with that kind of money.
“What it gave me was some breathing space. It gave me time to access what I really wanted to do with the money, and to invest and spend it wisely.”
The possible winner of tonight’s Powerball jackpot will indeed be lucky, but Barbra stressed that he or she should be smart about it as well. She also mentioned how thrilled she was when she went to the ATM to get some money out and saw that huge dollar amount on her receipt. It gave her plenty of satisfaction. The biggest thing to do, in her opinion, is to wait and take a breath to access your situation first before you make any rash decisions.
On the other hand, Kevin O’Leary advised to never spend the principal, only the interest. He said that it would be wise to put the jackpot money into three or four large financial institutions and invest in things like government bonds to make your four percent interest, which would come out to be about $600,000 a month for the rest of your life. He said to wait until that comes in before you spend any of the money.
“The key is to not spend the principal. Don’t let anyone tell you they need a check from you. Just put it in the bank and don’t spend any of it until the first $600,000 comes in. That’s good advice.”
They did both agree that you should never, ever pay anyone 25 percent to be able to stay anonymous after you win the jackpot. O’Leary did say that if a family member asks for money, he would give them some of the $600,000 as a gift, but just one time and never again.
Barbara and Kevin’s Shark Tank co-star, Mark Cuban, also offered his own advice on what to do if you win the Powerball jackpot. He told the Dallas Morning News that first off, you should definitely hire an attorney. He also suggested that you not take the money in one lump sum so that you won’t spend it all right away.
The Dallas Mavericks owner also said to say no to anyone who asks for your money. That doesn’t mean that you should not help those who actually need it, but be leery of those who have to ask you for it. Cuban also sides with Barbara on putting the money in the bank instead of investing it.
“You don’t become a smart investor when you win the lottery. Don’t make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won’t lose money.”
These Shark Tank entrepreneurs are smart in how they make money and how they keep it in their pockets, as well. What you chose to do with the Powerball jackpot money if you should win is entirely up to you.
What advice would you take if you are holding that winning ticket in your hand tonight when the Powerball numbers are announced?
[Photo by Justin Sullivan/Getty Images]