Steve asked me, knowing of my over thirty years experience in Business and in particular Finance, if he won the New York lottery, how should he invest it? I replied, before I launch into the traditional lecture on portfolio management and value investing, there are two common sense areas which need to be considered; Health and Education.Health starts with the realization that your good fortune now puts you, your family and friends in danger. The more people that know about you winning is the greater the danger. So do not tell. In fact, I would suggest a plan that if followed precisely and if it works would limit the amount of people with direct knowledge of your financial status and limit the risk to family and friends.
For your own health and safety: Keep the winning ticket safely and secure for as long as you can. Open numerous numbered accounts at separate banks in different countries with strong banking privacy laws, there is a popular misconception that numbered accounts are for criminals only, this is not so, the best use of numbered bank accounts is to protect you from those criminals. The lottery company only needs that winning ticket, it is a pay to bearer instrument, disguise yourself as you see fit, travel in a heavy tinted vehicle, use public toilet to ensure you are not followed or tracked by cameras. Do not give the lottery company the rights to publish or use in any way your name or image, this is common sense, yet many previous winner joint the lottery winners club and other associations catering and targeting winners. Instruct the lottery company to wire your winnings across three to five different numbered accounts and verify that the correct amount have be received via your own laptop before you leave the lottery company’s premises. Immediately move different amounts across to other numbered accounts in the same banks and close those accounts that the lottery company know about. Finally, when necessary, move small amounts into your investment accounts, your business bank accounts, but never to your personal accounts.
All this may seem as a bit much, a movie script but try to remember you are protecting your love ones from conman, kidnappers or worst, themselves.
Now to Education, no matter what level of formal schooling you have attained, common sense will be you guiding force. If your lifestyle suddenly changes, you now drive a prestige car instead of all the second-hand cars you use to drive, you now live among the upper class when all your family and friend still live in modest dwellings, you will be targeted. Invest in publicly traded shares, Government bonds, some key privately held shares and turn your hobbies into your business. Purchase vehicles and houses through your business accounts, pay all relevant taxes and carry yourself as an under paid employee. Most of all, always get a second financial opinion.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
