Powerball ticket sales are being rung up in Rockford as everyone hope to win the big billion dollar plus jackpot on Wednesday.
The jackpot will be the highest lotto amount ever, and is the talk of town, but financial advisor Scott Laue, from Savant Capital Management, says people should keep quiet if they win the money.
Laue says, “You probably want to lay low in terms of communicating… with the media, until you get the master plan in order with the legal team, with the accountants.”
Once you get your team in place, he recommends taking the lump sum instead receiving the money over a long period of time.
Laue explains, “That will eliminate the possibility in a raising income tax environment of having to pay higher taxes on those distributions going down the road.”
The winner should not invest it all in one place. Laue says your goal should be to not outlive your money through diversification.
He says, “Come up with a diversified portfolio that includes not only stocks and bonds, but is also diversified all across the globe. So you’ll need international security, you’ll need domestic security.”
Officials from the Better Business Bureau warn that the Powerball plays right into the hands of scam artists.
Scammers may call people pretending to be from the Illinois Lottery, telling them that you they the lottery, and must send in money to get their winnings.
Dennis Horton of the “BBB” says the Illinois Lottery will never call you.
Horton says, “They don’t call you, you buy the ticket, you contact them with the winning ticket, it doesn’t work the other way around.”