Would you lose it all if you won the lottery?
Hooray, you’ve won the lottery! Sayonara cash-strapped days, hello multimillion-dollar payout! Can you manage to hang on to your winnings, or will you become a lottery loser?
You've just realized you have a winning lottery ticket. The first thing you do is:
- Tell your boss you're not coming back to work.
- Make a mental list of everything you're going to buy.
- Don't spend a dime! There's time for that later.
If you win a $4 million jackpot, what's the payout?
- $4 million (duh!)
- about $2 million
- $3 million, more or less
What is the best post-lottery financial plan?
- to sail around the world in my custom-built yacht
- to map out a financial road with qualified financial advisors
- to spend like there's no tomorrow -- starting with a massive shopping spree at Saks
With your lottery winnings in hand, it's time to join the ranks of the uber-rich. The first step is:
- Call up a realtor who specailizes in luxury properties so you can look for a mansion.
- Develop a long-term saving and investing plan.
- Buy a luxury sports car with a custom paint job -- how about some fire painted on the hood?
You've just won mega-millions, whose advice should you seek first?
- your mother
- a lawyer
- an accountant
Which of these would you be most likely to do with your tax refund?
- Go on vacation.
- Buy everyone a round of drinks at the local watering hole. That'a all it covers anyway.
- Save the refund in an emergency fund.
What is the typical state of your checking account?
- a healthy balance, thanks to a cushion of several hundred dollars for emergencies
- a few dollars on the "plus" side until the next paycheck
You have a lottery ticket with the winning numbers. What should you do first?
- Quit your job.
- Let all your friends know about your good fortune.
- Sign the ticket.
Should you accept the lottery payout as an anonymous winner?
- No way! What's the point of winning if you can't make your coworkers and former high school classmates green with envy?
- Yes. This saves you from getting lots of requests for money.
- To compromise, send your best friend instead to collect; no one will know the difference.
Now that you've won the lottery, family members have come asking for help. What should you do?
- Don’t give out anything. Once you start, more people will come begging for assistance.
- Set aside a fixed portion of your winnings to help others.
- Do it on a case-by-case basis.
Are you more likely to lose it all if you take a lump-sum lottery payment rather than annual installments?
- It makes no difference either way.
What's one secret to living off your lottery winnings, long-term?
- Get a roommate to share expenses.
- Put the money in long-term investments and live off the interest.
- Tie up lots of the money in real estate.
You've just received the check representing your massive lottery win. Where should you deposit it?
- a large brokerage firm
- your regular bank
- check cashing store
Where's the best place to stash your winning lottery ticket?
- Have a friend hold it for you.
- bank safe depost box
- under the mattress
If you won the lottery, a firm understanding of which theory could serve you well?
- prospect theory
- peircian theory
- "The Big Bang Theory"
What is one personal factor that can ensure your lottery winnings last the rest of your life?
True or False: Lottery winners don't need budgets.
What is an unexpected pitfall after winning the lottery?
- lack of sleep
- psychological issues
- weight gain
Most people think winning the lottery will bring:
- uncertainty, because you worry about how to spend the money wisely
- happiness, because it will solve all your financial woes
- stress, because of all the problems associated with lots of money
What is the "lottery curse"?
- Overall, your life becomes worse after you win the big payout.
- King Tut cursed all future winners of lotteries and gambling.
- Anything you invest in with lottery winnings is bound to fail.