The jackpot in the multi-state Mega Millions lottery is about $206 million, so I just bought a ticket. I always like to be prepared, but I’m not sure how to manage the huge windfall I am expecting to claim on Monday.
Lets say that I elect to take my prize as a lump sum rather than an annuity, and that after taxes it boils down to a check for $40 million. It can’t be a good idea to deposit it all in my checking account, since the FDIC only insures deposits up to $10,000. Should I spread it around in things like CDs and bonds? Should I turn it over to a financial advisor?
I expect that the publicity around my win will cause me to be deluged with offers from all sorts of money managers, not to mention scam artists, hucksters, and long-lost cousins. That’s why I’m asking for guidance in advance. What does one do with such a large amount of money to keep it safe, and hopefully make it grow?