How Does A Lottery Winner Deposit A Huge Multi-Million Dollar Check?

[venice_ca]

It's my understanding that they don't do wire transfers, only checks.

Thank you for that information.

 

[reflechissez]

I would just do that. Just for the fun of it, to see jaws dropped and my banker being close to a heart attack.

It is relative easy to spread out such a huge amount of money so it would be insured. One vehicle would be short term CDs. till you find a better way to invest and secure the money. Sit down take a deep breath and let it sink in and continue to live your current livestyle

Sigh. CD's are only insured up to $250k/bank. Put the money in short-term treasury bills until other decisions are made. No insurance needed.

 

[reflechissez]

I don't play the lottery because I understand math and statistics.

They don't actually receive the money in check form. After the Lottery officials authenticate the ticket, the winner has to sign some stuff and a transfer is made however it's designated. Something similar to how you may have done when signing new hire paperwork to tell them where to send your paycheck.

The people I know that have won usually set up Roth IRAs or other long-term investment accounts.

Depends on the state.

 

[reflechissez]

Thank you for that information.

After looking into it some more, it appears to depend on the state.

 

[justabubba]

The Mega Million 1.35 billon dollar lottery was won by one person this week The lump sum cash out is 724.6 million. How does one deposit such a huge some and where? FDIC insurance stops at $250,000.

you buy the bank





if you don't trust banks, then buy a mattress manufacturing company

 

[noonereal]

I don't play the lottery because I understand math and statistics.

Same. Makes me sick the money my significant burns playing it.
People who swear they are rational and reasoned play it all the time and never stop believing they are rational and reasoned.
Humans, a failed species.

 

[gdgyva]

I have a net worth well past 7 figures, and i play the lottery

Even though i know my odds of winning are 325 million to one, you cant win if you dont play

And playing 10 bucks when the jackpot is over 400m just seems like a nice way to dream

So i waste 300-400 bucks a year.....pocket change for me

And that is why most people play....to dream of hitting....gives us a little hope

 

[Mighty Jungle]

I have a net worth well past 7 figures, and i play the lottery

Even though i know my odds of winning are 325 million to one, you cant win if you dont play

And playing 10 bucks when the jackpot is over 400m just seems like a nice way to dream

So i waste 300-400 bucks a year.....pocket change for me

And that is why most people play....to dream of hitting....gives us a little hope

My aunt is married, no kids. Her husband spends $3,000/month. He's won some here and there but not the mega bucks. They've been married about 35 years now. But, like you, there is enough income that it doesn't phase them. I just think of all that $ which is more than a lot of people earn in a year.

 

[justabubba]

I have a net worth well past 7 figures, and i play the lottery

Even though i know my odds of winning are 325 million to one, you cant win if you dont play

And playing 10 bucks when the jackpot is over 400m just seems like a nice way to dream

So i waste 300-400 bucks a year.....pocket change for me

And that is why most people play....to dream of hitting....gives us a little hope

that how i get past my wife's (minor) indulgence in lottery tickets ... it is a small price to pay for the optimistic outlook she realizes ... at least until the drawing is conducted

for my Mom, it was the nickel slots overseas in the 60s. small investment to realize a perpetual smile

 

[post]

They don't deposit it. They have a professional who deals with the investment of the money through a trust fund. Hopefully honestly and prudently

Lottery Official Reminds Mainers They’re Exceedingly Unlikely To Win $1.6 Billion Jackpot

The prize for the Mega Millions lottery is at $1.6 billion, and Mainers are buying up tickets. But the director of operations for the Maine Lottery,…

www.mainepublic.org

"In the event that Maine does have a Mega Millions winner, he or she can opt to remain anonymous — but Boardman says that’s never happened.

“What a winner could do in Maine is they could file their claim in the name of a trust, and the trust becomes the winner. So that’s how a winner could claim their ticket anonymously,” he says.

The Mega Millions drawing is Tuesday night. It’s played in 44 states, Washington D.C. and the US Virgin Islands."

Originally published Oct. 23, 2018

 

[post]

Last fall, this winner waited until near six months claim deadline, the state lottery commission considering winner as a claimant until post interview
and check of security footage that recorded the ticket purchase!

https://www.cbs8.com/article/news/local/38m-superlotto-prize-sold-at-san-diego-711/

SAN DIEGO — Someone has come forward to claim the prize money for a $38 million dollar SuperLotto Plus jackpot.
The 7-11 store on Spruce Street in San Diego sold the winning ticket but until late Friday afternoon, everyone thought the deadline had come and gone.
The claimant came into the local San Diego California State Lottery office just before the deadline on Thursday. ...

 

[rhinefire]

Oh course but it's not a personal savings account

If you did put it in a savings account earning 4% that would give you $2,896,000 annually.

 

[reflechissez]

If you did put it in a savings account earning 4% that would give you $2,896,000 annually.

Unless short-term interest rates go down.

 

[post]

If you did put it in a savings account earning 4% that would give you $2,896,000 annually.

After reading this, I would claim the winnings after only hiring an attorney specializing in trusts to create one to accept the lottery prize and
then purchase U.S. treasuries with the proceeds, taking a lump sum unless I was under 40.

If I took the lump sum of over $700 million, there is enough there to create a family office to convert the US treasury portfolio into an investment strategy
via the family office investment professional working exclusively for the trust. Consider that the $1.5 billion winner described in the article was assumed to
have made reasonable choices, hiring an established specialist catering to high prrze winners of that same lottery.

https://www.bloomberg.com/news/feat...inners-lost-riches-after-using-lottery-lawyer
July 1, 2022
"...
“No,” Kurland replied. “At the end of the day, we made, we’ve got bad business moves, but it was nothing criminal.”

Four days later, Smookler called another member of their team, a childhood friend named Frangesco Russo. The two were close; on the phone, they called each other “cuzzie.” Frankie’s grandfather was Andy “Mush” Russo, the longtime head of the Colombo crime family; his late father, Joseph “Jo Jo” Russo, died in prison. Frankie had kept his distance from the family business, but he was nevertheless acquainted with the criminal justice system. “We coerced these people into investing with us,” Smookler told him.

Russo didn’t seem too worried....
....
And a few minutes on is the law firm of Rivkin Radler, where as a partner Kurland cultivated a nationally known practice advising Powerball and Mega Millions winners bewildered by their sudden riches. Behind his desk he kept an oversize replica check for $245.6 million, made out to a Staten Island carpenter who later told investigators he’d found Kurland “very reassuring and comforting.”

There were others in this ultra-specialized field, such as Kurt Panouses of Indialantic, Fla., the so-called Powerball Lawyer. But Kurland was America’s foremost lotto-winner whisperer. Morning shows would book him for soft-focus segments; thelotterylawyer.com and @lotterylawyer were his. In 2018 he started representing the biggest solo lottery winner of all time, a woman who’d bought a $1.5 billion ticket at a convenience store in South Carolina....

....
Side hustles emerged, and the cast of characters he worked with began to look less vanilla: In addition to Smookler and Russo, there was Christopher Chierchio, who ran a Staten Island plumbing business and has been identified in the New York tabloids as a Genovese crime-family soldier; Greg Altieri, a wholesale jeweler turned Ponzi schemer; and Kurland’s own brother-in-law, Scott Blyer, aka DrBFixin, a cosmetic surgeon specializing in Brazilian butt lifts.

It all came to a head when, on the morning of Aug. 18, 2020, Kurland, Smookler, Russo, and Chierchio were booked on multiple counts of wire fraud and money laundering, accused of bilking three marquee lottery winners out of more than $100 million. Smookler and Russo were also accused of extortion..."

 

[Eriech]

The Mega Million 1.35 billon dollar lottery was won by one person this week The lump sum cash out is 724.6 million. How does one deposit such a huge some and where? FDIC insurance stops at $250,000.

A neighbor won one of the early Powerball jackpots 20 years ago or so. His family set up a Foundation with 5 mil. Every year the earnings are donated to causes in the town. There's a board set up to review applications. The guy died 10 years ago but his legacy lives on. Pretty cool.

 

[Gatsby]

I think you can deposit directly to a Vanguard brokerage account (or more likely a wire transfer) without the money ever touching your bank account. I assume that other brokerage accounts like Charles Schwab and Fidelity offer the same thing. If you deposit to VMFXX, you're at least earning money-market interest rates while you figure out what you want to do with your money.

And you really don't need a money manager, unless you want to overcomplicate things. Most of your portfolio should just be in stock/bond index funds (or their equivalent ETFs). If you're doing anything more complicated than that, you're probably making mistakes.

 

[reflechissez]

I think you can deposit directly to a Vanguard brokerage account (or more likely a wire transfer) without the money ever touching your bank account. I assume that other brokerage accounts like Charles Schwab and Fidelity offer the same thing. If you deposit to VMFXX, you're at least earning money-market interest rates while you figure out what you want to do with your money.

And you really don't need a money manager, unless you want to overcomplicate things. Most of your portfolio should just be in stock/bond index funds (or their equivalent ETFs). If you're doing anything more complicated than that, you're probably making mistakes.

This is your advice to someone that will be receiving over half a billion dollars?

 

[trouble13]

I would hide it all under my mattress

 

[Gatsby]

This is your advice to someone that will be receiving over half a billion dollars?

Yeah, essentially. Just put it in index funds, and then leave it alone. Maybe buy a few real estate properties for personal use, if you're into that sort of thing. (I'd probably get 3-4 homes in different cities just as a personal indulgence.) But in terms of actually growing your money, avoid active management of your money at all costs. That's just more opportunities to make mistakes and underperform the market. ESPECIALLY for the kind of person who has never had money before, and got it by playing the lottery. They are even more likely to make costly mistakes.

 

[EMNofSeattle]

The Mega Million 1.35 billon dollar lottery was won by one person this week The lump sum cash out is 724.6 million. How does one deposit such a huge some and where? FDIC insurance stops at $250,000.

Obviously you open up 2500 savings accounts at many different institutions, then invest in a wallet company to make the custom billfold you’ll need for all the ATM cards.

 

[reflechissez]

Yeah, essentially. Just put it in index funds, and then leave it alone. Maybe buy a few real estate properties for personal use, if you're into that sort of thing. (I'd probably get 3-4 homes in different cities just as a personal indulgence.) But in terms of actually growing your money, avoid active management of your money at all costs. That's just more opportunities to make mistakes and underperform the market. ESPECIALLY for the kind of person who has never had money before, and got it by playing the lottery. They are even more likely to make costly mistakes.

A person who has never had money before doesn't usually fair well with instant wealth. Your "advice" is grossly over-simplified.

 

[Gatsby]

A person who has never had money before doesn't usually fair well with instant wealth.

Right, which is why it's a good idea to put it in index funds and leave it alone, instead of screwing around with it.

Your "advice" is grossly over-simplified.

No it's not. It's exactly the right amount of simple.

 

[reflechissez]

Right, which is why putting it in index funds instead of screwing around with it is a good idea.

No it's not. It's exactly the right amount of simple.

Nah

 

[Aristaeus]

I'm wondering if it might go directly into some type of investment account? Perhaps a money market account, or conservative fund of some sort? Then quickly disbursed into a diversified investment portfolio?

The OP does pose an interesting question.

Why would you want or need to put $700m+ in an investment portfolio? That's more money than you could spend in your lifetime, you literally don't need to make any more money.

 

[Gatsby]