Financial advisors offer tips on what to do with big winnings - KCTV5

Financial advisors offer tips on what to do with big lottery winnings

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FAIRWAY, KS (KCTV) -

The winning ticket out of Dearborn, MO, is the second biggest jackpot in history.

Even though the winner won't be getting all $580 million, they will still have a big chunk of change to do plenty with. The lucky winner can choose to cash out over 30 years totaling $293.7 million or take a lump sum payment of $192.3 million before taxes.

Either way, financial experts said this might be the perfect time and year to get in on the major money.

"Sudden shock of all this wealth. The first thing they might think is, ‘what am I going to spend this on' instead of ‘what am I going to save for the future, so I'll have money to live on to retirement and pass on to the next generation,'" Tom Dexter with Oppenheimer, an investment management service, said.

Dexter often helps people manage their money after coming into lots of it suddenly.

"They don't find competent investment advisors and they go into investment schemes. They think they have so much money, they take a gamble on it," he said.

The danger of being taken advantage of is just as risky as failing to invest that money properly and it's something Dexter said the winner should get done before the year's end and when a decision is made about the fiscal cliff.

"Tax rates are going up next year, gift taxes on what you can give is higher this year than next year. You get bigger deductions this year," he said.

That could all happen if Congress goes over the fiscal cliff and, with the uncertainty, Dexter said lottery winners should start planning now.

"They should take their time in investing, but they might want to get an investment plan in the next three to four weeks and invest some of it before the end of the year," he said.

Dexter advised that the lottery winners should invest 90 percent of their winnings and take 10 percent for buying fun things and a nice, long vacation.

Another person buying a ticket in the Northland hit it big in the Powerball drawing Wednesday night.

The Missouri Lottery Commission reported a customer at a Sunfresh off Vivion Road won $1 million, the prize for getting five numbers right, but missing the Powerball.

The store director said the lucky winner has not come forward yet, but the entire staff is hoping it's one of their loyal, long-time customers.

"I'd like to meet them, I hope they're my regular customers," Danny Barnes said.

There was another $1 million winning ticket bought in Joplin, MO.

In March, a person in Ottawa, KS, won the record-breaking Mega Millions jackpot. That person chose to remain anonymous and was able to under Kansas Law, but the winner from Missouri won't have that luxury. Under Missouri state law the lotto must release the winner's name, the name of the city where they live and the amount won.

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