# If you win the Powerball, where do you (temporarily) put the money? **URL:** \ **Category:** Factual Questions\ **Created:** [August 26, 2017, 5:53pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747 "2017-08-26T17:53:53Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![edwardcoast](https://avatars.discourse-cdn.com/v4/letter/e/cab0a1/32.png) [@edwardcoast](https://boards.straightdope.com/u/edwardcoast)\ **Post date:** [August 29, 2017, 3:13am UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/81 "2017-08-29T03:13:08Z")
> [@Riemann](#): > > So the consensus from the ignorance-fighting crowd in this thread seems to be: > > (1) Put all the money on deposit at a bank. Because, although a depost account will not pay me anything to take the bank’s credit risk, there’s not _much_ chance a big bank will go bust. And I’ll probably get 70c on the dollar back a few years later even if it does, no harm done! And, most important, never having handled more than a few thousand dollars, that’s the only thing that I know how to do, and I’m _determined_ not to learn anything new here. > > (2) Be extremely careful never to earn any interest on the money. Taxes are complicated, and since I don’t understand them, it seems highly unlikely that anyone else does either. The IRS sends people to jail! This is one of the reasons that most people don’t have any money themselves, because they don’t know how to manage it to begin with and always use the excuse because they don’t earn enough. The vast majority of the people who plan the lottery on a consistent basis actually afford to play it. Some spend $50.00 a week on it. Just imagine what they could do to improve their lives using those $50.00 to do something else along with some work instead of sitting in front of the tube each night with a beer in their hands. ---
**Author:** ![SlackerInc](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slackerinc/32/275_2.png) [@SlackerInc](https://boards.straightdope.com/u/SlackerInc)\ **Post date:** [August 29, 2017, 3:27am UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/82 "2017-08-29T03:27:37Z")
> [@cochrane](#): > > I saw a headline online that read, “Mother wins US$758.7m in record single US jackpot, quits job.” > > In other news, moon temporarily obscures sun during eclipse, bear scat is found in woods, and Pope declares that he believes in Jesus. My wife and I buy a ticket every time it becomes a big thing in the news (so probably we’ve spent thirty bucks over the decade we’ve been together). She, a special education teacher, is adamant that she would \*not \*quit her job if we won. And I believe her. First of all, she (although an atheist herself) was raised by devoutly Lutheran Norwegian-American Minnesotans who would probably consider “idler” to be the worst thing a person could be. And she takes special pride in her work, and feels a social justice responsibility to continue it. I am utterly unlike her in this way (as you might guess from my screen name, LOL); but I respect her for this and just wanted to mention that there are people like her out there. ---
**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [August 29, 2017, 4:20am UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/83 "2017-08-29T04:20:37Z")
> [@edwardcoast](#): > > Exactly, with that much money there is no need to leverage is to get more money out of it. Because whatever safe investment it is put in, you will more than be able to live off the interest alone. 1% a year is still $3M. The biggest peace of mind from a huge winnings like that is to not be concerned about the stock market and the economy. There’s no objectively correct answer here, but I don’t agree with this. Common sense dictates that we should not risk money that we cannot afford to lose. That dictates that when we have barely enough to get by we should take a conservative approach. Whereas when we have so _much_ money, the opposite applies - we can (if we choose) take a huge amount of risk without losing any sleep. (Ironically, the only risk I would _no_t take is to park all the money on deposit with one bank, as most people in this thread seem inclined to do! The only risk you should not be willing to take with so much money is to put it all in one place so that you might lose _all_ of it, however unlikely the event.) Beyond that, the conventional distinction between stock investments and fixed income is really the timeframe of your needs, rather than the size of your account. Over 20 years or more, the stock market will outperform fixed income with a high probability. So if you are investing with that timeframe, buy mostly stocks. But if it’s money that you need over the next few years, you may get unlucky with a short-term downturn in the stock market, so a larger proportion in short-term fixed income is sensible. But it’s wrong to infer that, over the long haul, the stock market is “risky” while bonds are “safe”. In the long run, the big enemy for the wealthy investor is not fluctuations in the economy or the market, it is inflation. Under the US tax system, the stock market probably gives the best long-term protection against inflation. Bonds, especially long term bonds at current prices, are extremely risky if inflation takes hold again. > [@edwardcoast](#): > > You donate money to the charity now and let them manage how they invest the money. They have investing experts who did that for charities and other non-profits. No reason to take on a burden yourself that you aren’t up to handling unless you are already in the business. It is arrogant to assume you can do better than the experts that manage the funds for the charities. This is not a good assumption. Many charities are terrible at managing their money. It behooves all of us to research our charitable giving carefully - not just based on whether it’s a “good cause”, but whether the charity is well run as a business. ---
**Author:** ![Smapti](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smapti/32/17938_2.png) [@Smapti](https://boards.straightdope.com/u/Smapti)\ **Post date:** [August 29, 2017, 11:03am UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/84 "2017-08-29T11:03:02Z")
At this point, my rough plan in the event I ever won an “I never have to work another day in my life” jackpot goes something like this; - Sign the ticket, and not let it out of my sight the rest of the night. - Overnight, change my phone number, set the social media accounts I want to keep to private, and delete the rest. Take no phone calls and answer no messages I don’t desire to, and politely deny any and all requests for money from anyone. - In the morning, drive across town to the lottery headquarters and turn in my ticket. Take the annuity rather than the lump sum. Find out how long it’ll be before I get my first installment. Do the bare minimum amount of publicity stuff they require and refuse any other interviews. - Go to my bank and ask to speak to a financial planner because I’ve just come into a large amount of money and need to figure out how to handle it safely. Talk to him/her and figure out where to put the money when it comes in, so that I can have ready access to it and yet have the bulk of it be safe and secure. - Go to work and talk to my boss. Tell him I’m giving my notice and I’m willing to keep working until around when I know my first payment will be coming in, but that if my presence becomes a disruption to business and he’d rather me stay home, I’ll do so. - Talk to my roommate and let her know I’ll be moving out as soon as the first payment comes in. Thank her for putting up with me and pay her a little something extra with the last month’s rent. Start packing. - Once the first payment comes in, leave town and take up residence in a fine hotel (I know exactly where I’d go) while I house-hunt. - Acquire a nice two-bedroom in a gated community with lots of privacy and furnish it. - Buy a Jaguar. - Get a full set of dental implants to replace my messed-up, broken, and missing teeth. - Live my life. (Maybe invest in a restaurant at some point.) ---
**Author:** ![Keeve](https://avatars.discourse-cdn.com/v4/letter/k/f07891/32.png) [@Keeve](https://boards.straightdope.com/u/Keeve)\ **Post date:** [August 29, 2017, 12:00pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/85 "2017-08-29T12:00:38Z")
> [@Smapti](#): > > - Go to work and talk to my boss. Tell him I’m giving my notice and I’m willing to keep working until around when I know my first payment will be coming in, but that if my presence becomes a disruption to business and he’d rather me stay home, I’ll do so. Do you have enough cash to cover you until that first check arrives? Once you’ve given notice, I think he’d be in his rights to simply fire you. Don’t be too hasty. ---
**Author:** ![Smapti](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/smapti/32/17938_2.png) [@Smapti](https://boards.straightdope.com/u/Smapti)\ **Post date:** [August 29, 2017, 12:06pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/86 "2017-08-29T12:06:25Z")
> [@Keeve](#): > > Do you have enough cash to cover you until that first check arrives? Once you’ve given notice, I think he’d be in his rights to simply fire you. Don’t be too hasty. Once I’ve cashed in the ticket, he’s probably going to hear about it. Waiting until later to cash it in isn’t going to change the interval between then and when I get the money. The only option I have is to be honorable and tell him the truth and let what happens happen. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [August 29, 2017, 12:07pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/87 "2017-08-29T12:07:57Z")
> [@Keeve](#): > > Do you have enough cash to cover you until that first check arrives? Once you’ve given notice, I think he’d be in his rights to simply fire you. Don’t be too hasty. You’re waiting on the first of many big checks. If some pocket money is needed, approach a buddy and ask to borrow $5,000, promising to pay him back $10,000 in four weeks. ---
**Author:** ![chappachula](https://avatars.discourse-cdn.com/v4/letter/c/d2c977/32.png) [@chappachula](https://boards.straightdope.com/u/chappachula)\ **Post date:** [August 29, 2017, 12:27pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/88 "2017-08-29T12:27:49Z")
> [@kayaker](#): > > You’re waiting on the first of many big checks. If some pocket money is needed, approach a buddy and ask to borrow $5,000, promising to pay him back $10,000 in four weeks. Why not just talk to that financial advisor at the bank who you mentioned, and tell him you’d kind of like a little loan. The bank will know you’ve got enough collateral. ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [August 29, 2017, 12:32pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/89 "2017-08-29T12:32:33Z")
> [@chappachula](#): > > Why not just talk to that financial advisor at the bank who you mentioned, and tell him you’d kind of like a little loan. The bank will know you’ve got enough collateral. More likely, the banker will give you an application for a credit card. This is what credit cards are for. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [August 29, 2017, 12:55pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/90 "2017-08-29T12:55:31Z")
> [@chappachula](#): > > Why not just talk to that financial advisor at the bank who you mentioned, and tell him you’d kind of like a little loan. The bank will know you’ve got enough collateral. Because I’d rather help out my buddy. ---
**Author:** ![Evan\_Drake](https://avatars.discourse-cdn.com/v4/letter/e/b487fb/32.png) [@Evan\_Drake](https://boards.straightdope.com/u/Evan_Drake)\ **Post date:** [August 29, 2017, 1:41pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/91 "2017-08-29T13:41:11Z")
The main British lotteries allow privacy if desired. Whilst not concealing the fact I can now afford stuff, I wouldn’t mention winning to anyone, and allow the firm impression I had had a moderate inheritance. _Suggestio Falsi_ is an honoured tradition in my country. ---
**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\ **Post date:** [August 29, 2017, 2:05pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/92 "2017-08-29T14:05:34Z")
Not the case here, alas. ---
**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [August 29, 2017, 3:16pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/93 "2017-08-29T15:16:51Z")
> [@Smapti](#): > > - Go to my bank and ask to speak to a financial planner because I’ve just come into a large amount of money and need to figure out how to handle it safely. Talk to him/her and figure out where to put the money when it comes in, so that I can have ready access to it and yet have the bulk of it be safe and secure. A financial planner is more for a long term investment plan, and this can wait - you will have a whirlwind of other things to think about for the first couple of months. At this stage you primarily want a suitable institution to get you set with all the accounts that you will need and guidance to receive your money and keep it safe while you get organized. A local bank isn’t the best plan, because they won’t have the expertise. For the time being, you will be best served by one of the big banks, who all have private banking teams dedicated to doing just what you need - with much higher levels of service for high net worth individuals. At this stage it doesn’t really matter which one - if you don’t already have an account with one of them, walk in to a convenient branch and talk to the manager. When they understand the sums involved, they will immediately take care of everything you need. A high tier “premier service” checking account, linked to a (safe, segregated) brokerage account; and if you need spending money, they will get you credit cards issued on short notice, etc. As I said at post #2, when the money arrives, instruct them to transfer it to your brokerage account and put it all in Treasury Bills (short term US government debt) for the time being. Now your money is _completely_ safe, earning interest but liquid and easy accessible, and the pressure’s off. You can now, at your leisure, think about interviewing potential financial planners at various institutions to find somebody that you’re comfortable with to help you manage your money long term. ---
**Author:** ![SlackerInc](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slackerinc/32/275_2.png) [@SlackerInc](https://boards.straightdope.com/u/SlackerInc)\ **Post date:** [August 29, 2017, 4:18pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/94 "2017-08-29T16:18:31Z")
Does anyone really take the annuity? I thought that was just a promo number to inflate the size of the advertised jackpot. ---
**Author:** ![Weisshund](https://avatars.discourse-cdn.com/v4/letter/w/ba8739/32.png) [@Weisshund](https://boards.straightdope.com/u/Weisshund)\ **Post date:** [August 29, 2017, 5:41pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/95 "2017-08-29T17:41:38Z")
> [@edwardcoast](#): > > Then maybe you can afford to get you caps key fixed too.😃 that will be my new secretaries job ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [August 29, 2017, 7:27pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/96 "2017-08-29T19:27:02Z")
She can also learn to operate the apostrophes and periods for you. 🙂 ---
**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\ **Post date:** [August 29, 2017, 7:32pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/97 "2017-08-29T19:32:33Z")
> [@Weisshund](#): > > that will be my new secretaries job No! It’s a trap. You think you’re safe from the IRS by putting the money in a non-interest-bearing account, but they’ll get you on payroll taxes. > [@LSLGuy](#): > > She can also learn to operate the apostrophes and periods for you. 🙂 I think you just failed the trick question to discover if you make sexist assumptions about professions. ---
**Author:** ![Weisshund](https://avatars.discourse-cdn.com/v4/letter/w/ba8739/32.png) [@Weisshund](https://boards.straightdope.com/u/Weisshund)\ **Post date:** [August 29, 2017, 7:52pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/98 "2017-08-29T19:52:50Z")
> [@LSLGuy](#): > > She can also learn to operate the apostrophes and periods for you. 🙂 She? ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [August 29, 2017, 8:03pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/99 "2017-08-29T20:03:33Z")
Guilty as charged. :o Unfortunately. Actually, reviewing my thoughts, I did not make a sexist assumption about professions. I made an orientationist assumption that **Weisshund** is hetero. And a further I’m-not-sure-whatist assumption that **Weisshund** is male. From there I made the privilegist assumption he’d hire someone of the other gender with intent to exploit. Perhaps in the manner of the many 5-10 minute documentaries available at various free or pay sites on the net. $300M does have a way of “opening up possibilities” shall we say? I’m honestly not sure which assumption is the least flattering to me or to **Weisshund**. ---
**Author:** ![Snarky\_Kong](https://avatars.discourse-cdn.com/v4/letter/s/a183cd/32.png) [@Snarky\_Kong](https://boards.straightdope.com/u/Snarky_Kong)\ **Post date:** [August 29, 2017, 8:03pm UTC](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747/100 "2017-08-29T20:03:56Z")
> [@kayaker](#): > > Because I’d rather help out my buddy. Isn’t think how every pro athlete ends up broke? [Previous page](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747.md?page=4) [Next page](https://boards.straightdope.com/t/if-you-win-the-powerball-where-do-you-temporarily-put-the-money/794747.md?page=6)