A MONEY expert has shared his clever tips on how to actually stay rich after winning the lottery.
TikToker Rahul has posted a video advising his followers on what they should do after scooping a big prize.
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He got the idea of sharing his helpful tips after an article reported a “winner of $1.28 billion lottery gets $433.7 million after tax.”
Rahul explained that when someone wins the lottery there are two options on how to collect the cash.
He said: “Here’s what you should do if you won the lottery: You get two options, a lump sum payment or to spread the payments across 30 years, each payment being 5 per cent larger than the previous one.
He continues noting that if you select the first option you will end up losing a big sum of money on taxes.
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Additionally, he says investing it all at once carries a higher risk.
“But if you take the annuity option, you’ll have a consistent flow of income for 30 years, ” he added.
“Seventy per cent of this you can use to invest and 30 per cent of this you can use to live, enjoy and travel.
“And that’s the thing; it’s not about becoming rich and showing off, it’s about staying rich.”
TikTokers had a lot to comment with many questioning what would happen if you select the second option and the lottery company goes bankrupt.
One asked: “what happen is the lottery company goes bankrupt after few years?
Someone said:” no this is the correct thing to do 1 if you’re old age 50 or over take the lump sum 2 if you’re young take the annutiy option 18-49″
Another one wondered: “theres fax after winning lottery?”
Someone commented: “All depends on your age. 35 y.o. & younger – take it over 30 years. Older take lump sum & put into a Trust.”
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Aliki Kraterou
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