The Powerball Daydream: What Would You Do with $53 Million?
I passed a Powerball sign on my way to the airport recently, and it sparked a chain of thoughts that I just had to share with you. There’s a valuable business tip hidden here, so buckle up, and let’s dive into our lottery dreams for a moment.
I noticed the Powerball jackpot was an enticing $53 million dollars. Being the accounting geek that I am, I couldn’t resist doing the math, so I cut that down to $15 million to account for taking it in a lump sum and paying taxes.
$15 million! Not too shabby.
Investing for Long-Term Happiness
What would you do with it? My immediate instinct would be to invest.
With that much money, I’d feel a massive responsibility to make it last—a nest egg to support my loved ones, friends, and the causes nearest to my heart.
We’ve all heard those heartbreaking stories of lottery winners who ended up broke and miserable just a few years later. Let’s make sure we avoid becoming one of those tales of misfortune.
Diversify Your Investments
As I mused over my hypothetical lottery win, it got me thinking about investments in general. Once an entrepreneur achieves remarkable success in their own business, they are faced with the challenge of wisely managing their newfound wealth.
One of the crucial discussions I have with my clients is diversification. What does that mean? It’s the age-old maxim: “Don’t put all your eggs in one basket.”
Imagine your business as your entire wealth—a basket holding all your eggs. While it’s great to invest in your own business to stimulate growth, leaving all your money there is risky. That’s where the pearls of wisdom from amazing wealth advisors, like my dear friend Matt Rzepka, come into play.
By identifying a portion of your wealth and investing it outside of your business—perhaps in real estate or other investments—you spread things out over different risks.
That way, in the event of a catastrophe or unexpected turn of events, if one thing goes belly-up, you still have the others.
So, congrats on winning the lottery! Let’s not become one of the stories of riches to rags.
Remember the key word: Diversify. When life hands you a Powerball sign on the way to the airport, seize the opportunity to dream big and make smart choices. After all, with $15 million dollars on the line, every step you take makes a difference!