Elvis left the hotel.

I learned all that when someone asked about lottery winnings. The main problem was not investing unless you are dumb to risk a rather large bird in the end for none in the bush worth bothering with.
The equally main problem is relatives and friends you didn't know you had and Sally Strothers which is a way of saying moochers.

The winnings have already been looted from the get go. Back to that in a moment.

The problem then becomes one of security. Use this quasi forumula Compute your average and probable age of death. Subtract your present age. Divide the amount not looted by that number. That's how much you can spend each year.

Two choices ....Divide by what is it 20 or 30 and take an annual lump sum which assumes which does not accrue interest. The risk is what are next years taxes going to be and what is the cost of liiving going to do over that time line.

The second best way is take half. I'll use that as an example. Here comes the looting. If you win this year now Dec 2015 you pay taxes next year. I'll pick one income tax state as an example at 8%. and Federal 38%. Two rules apply. No matter if you are a resident of a non income tax state or Pennsylvania which charges no tax on lottery wins it's the rule of the state where the ticket was purchased that counts. Second there is a deduction of state and local taxes that may or may not be in force just as 38 and 8 my sample percentages may or may not be in force (raised or ha ha lowered) by tax time.

So I'll keep it simple using Powerball for this week 160 million. 1/2 is 80 million minus 46% state and federal (and assuming no liens such as child support etc. ) = 43.2 million. Tax paid forever. If you are 50 years of age thats 3.2 million to purchase a new home etc. couple of cars, couple of boats round the world cruise...and pay for the grand kids college. leaving 40 million. Divide by the number of years of life expectancy and perhaps add a few but if you don't that's a million a year . Put the money in a zero interest account. You now have - prepaid - a million a year to age 90.

Why zero interest account? Hey you want to do taxes every year? If so figure what amount of that you want to invest and all the horror stories that go with it including commissions.

For me I like zero interest accounts.

Then where do you park it. T Bills at zero interest are good and better than banks IF you trust the government.

Banks will do the same IF you trust the banks an the economy and want to go through the hassle of doing separate accounts all $250,000 FDIC limited or 160 accounts.

The reason for T Bills is the government wil ljust print more money and pay you less the loss in Cost of Living. So figure ....they go under completely or if like the 2008 you lose 30% buying power. Let's see $40 Mill and FDC will give you $250,000 or $40 mill at 70% leaving you 28 million.

Or you convert to cash or a cash equivalent and park it in a safety deposit

OR you move it offshore. The rule is - so far - you have to report $10,000 and over. So what? the taxes are paid...Move it.

Again it's a matter of trust.

Which led me to how much would fit in an attache case... That would be four weighing 22 pounds plus tare each.

And make sure you report it. That leaves an annual report on any money you earn but why aren't you fishing. You can afford it!

As for the relatives and friends....your problem...learn to disappear.

And the moochers? Refer them to the White House or the State Capitol didn't you just give back $37 million?

The point is ....if you are one of the lucky and that's what it is dumb luck. to win a biggie it's a question of security which automatically minimizes risk.

(If you are a Democrat, a socialist, or an investment banker...forget what I just said.)

My sister's friend who did win one but not that big. Said good bye and no one's seen them since. I hear a very few of certain relative had anonymous donations made to their university tuition account...I also hear that anyone who asks gets an automatic No.