If You Won BIG, Would You Perform Risk Management?Prev Topic Next Topic

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GiveFive

Florida's West Coast
United States
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June 10, 2010
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Sep 24, 2025, 9:34 am

Suppose you just won $200 million playing PowerBall. Do you think you'd need to perform a Risk Management Analysis? (or hire somebody to do it for you) I'd do it.

Here's why Risk Management is important.

Inadequate risk management can result in severe consequences for companies, or individuals.

The subprime mortgage meltdown that led to the Great Recession of 2007-2008 stemmed from a failure to manage risk. Banks and other lenders gave mortgages to people regardless of their credit ratings or income. The mortgages were then sold to investment firms that packaged and resold them to investors as mortgage-backed securities (MBSs). This was profitable until rising mortgage default rates rendered the MBSs worthless.

My point is this - Most people don't know what Risk Management even is and why it's important, but a few people win huge money playing the lottery. They're the people that will probably end up squandering it. It's happened before and it'll happen again. G5

Play Smart! That's IF there is such a thing as playing smartly!!
CDanaT

Central TN
United States
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January 4, 2012
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Sep 24, 2025, 10:10 am

A few factors would play into my path forward:

1. After tax amount won. Is it $200M take home? Taking the Annuity or Cash Value(roughly 46% of $200M) minus fed taxes ?

2. Estimation of years life left(plus 5).

3. Purchase of Gold and Silver to cover life expenses for at least 25 years - through private sales and places such as APMEX/Hero Bullion etc.

4. Cash on hand(depends on #1)

5. CDs at multiple local banking facilities

6. Hire the professional....There are numerous places to invest with guaranteed returns of at least 3% (Fidelity Security Life) Also there are plans through various large firms such as Principal that produce solid returns. As the executor of an estate for over a decade, I have seen first hand on how these plans are working out for that person.

* Just my 2 pennies on the topic
OhSoClose

Tyrone, PA
United States
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May 15, 2019
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Sep 24, 2025, 11:14 am

My top concern after winning a large amount would be security for myself and my family. Securing the finances is important, obviously, but I'd be nervous every time somebody left the house because of the kidnapping risk. No anonymous claiming in my state, so your name's going to show up on the radar of literally a bunch of people you'd rather never meet.
CDanaT

Central TN
United States
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January 4, 2012
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Sep 24, 2025, 11:50 am

Key Functions of a Family Office Wealth Management Services

Investment Management: Handling investments in various asset classes, including private equity and real estate.

Tax Planning: Developing strategies to minimize tax liabilities.

Estate Planning: Organizing the transfer of wealth to future generations.

Lifestyle and Administrative Services Household Management: Overseeing household staff and daily operations.

Travel Arrangements: Coordinating travel plans for family members.

Philanthropy Coordination: Managing charitable giving and foundations.

Types of Family Offices Single-Family Office (SFO) Serves one wealthy family. Focuses on personalized services tailored to that family's needs.

Multi-Family Office (MFO) Serves multiple families. Offers shared resources and expertise, often at a lower cost due to economies of scale.
JustMaybe

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January 2, 2023
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Sep 24, 2025, 2:12 pm

I would not perform a risk management.

In the State where I live, we can collect our lottery winnings anonymously, so that takes away 95% of the risk.

I will also keep a very low profile and continue to live just like I do now, any upgrades will be within my means.

The more exposure or attention you present to yourself the higher your risk profile becomes.

Investment wise, I will go with treasuries and low cost ETF, tried and tested methods, minimal risks.

Simplicity would be very key for me.

I believe winning the lottery jackpot is a 💯 % factor of luck.

May Fortuna, goddess of chance or lot vindicate me.
Coin Toss

Zeta Reticuli Star System
United States
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January 17, 2006
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Sep 24, 2025, 11:40 pm

My 'risk management' would simply be no high end cars, no bling and no hand outs!

Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.

There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.
grwurston

100

Same digits. Different games.

United States
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April 24, 2010
16,843 Posts
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Sep 25, 2025, 5:19 am

Quote: Originally posted by Coin Toss on Sep 24, 2025
My 'risk management' would simply be no high end cars, no bling and no hand outs!

Keep it to yourself, don't tell anybody. Enjoy yourself but don't get too flashy and start acting like a big shot. Simple as that.

List Pick 3 singles by low sums, high sums. Separate each sum row by consecutive pair and non consecutive pair combos. These 3 pair groups. 14 17 47, 25 28 58, 36 39 69 are in 63 combos. 54 combos do not have them. Which sums do the 3 pair groups appear and not appear? Look at root sum groups 147, 258, 369. Play accordingly.
hypersoniq

Pennsylvania
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April 6, 2003
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Sep 25, 2025, 7:42 am

Risk management can be broken down into 2 main phases, risk assessment followed by risk mitigation.

One such example would be FDIC insurance, which is usually set at up to $250,000 per depositor.

For a large win, you can find out if your current bank is a participant in the intraFI network. This service allows dividing large deposits across many member banks, keeping each individual deposit under the $250,000 limit so you can effectively protect $50,000,000 or more. One of their offerings is CDARS, where your many accounts are certificates of deposit, but intraFI also offers other account types such as money market.

Another risk is that 13% difference in what the lottery will withhold in tax @ 24% vs the 37% you will owe on a large portion of that prize.

You would also need to consider property tax on buying a new home, health insurance when no longer having an employer, personal and family security measures such as NOT hiring "staff" as outsiders present a major security risk.

Risk assessment starts with a list of potential risks, and risk mitigation is checking each thing off that list.

One such decision process would be purchasing firearms, particularly if you never felt the need before to own any. That decision does not end at the store... you need training and practice, a store of ammo, also insurance is available... you also need to know the laws of your particular state inside and out so you don't become the double victim of an intruder AND the law.

There is much to consider. Many of us have had decades to imagine it. Planning is free, and having plans in place to handle such an event would be better than NOT having them.

Have an EXCELlent day!
CDanaT

Central TN
United States
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January 4, 2012
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Sep 25, 2025, 12:47 pm

Quote: Originally posted by Coin Toss on Sep 24, 2025
My 'risk management' would simply be no high end cars, no bling and no hand outs!

Sorry CT......I may have to have these 2.....Hidden in the back of the garage.

https://www.youtube.com/watch?v=Pvvwasj7e6o

https://www.cargurus.com/Cars/l-Used-Acura-NSX-d17#listing=421374520/NONE/DEFAULT

Bad men need nothing more to compass their ends, than that good men should look on and do nothing.
Coin Toss

Zeta Reticuli Star System
United States
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January 17, 2006
12,515 Posts
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Sep 26, 2025, 8:22 pm

Quote: Originally posted by CDanaT on Sep 25, 2025
Sorry CT......I may have to have these 2.....Hidden in the back of the garage.

https://www.youtube.com/watch?v=Pvvwasj7e6o

https://www.cargurus.com/Cars/l-Used-Acura-NSX-d17#listing=421374520/NONE/DEFAULT

To each their own CDanT, good luck keeping a loe profile with those!

Love the sig.

Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.

There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.
Lotterologist

Michigan
United States
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March 30, 2006
3,906 Posts
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Sep 27, 2025, 11:08 am

If I won $200 million, I would share it with the poor.

I would have no need for risk management.
JustMaybe

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January 2, 2023
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Oct 1, 2025, 10:16 pm

Quote: Originally posted by Lotterologist on Sep 27, 2025
If I won $200 million, I would share it with the poor.

I would have no need for risk management.

I won't make promises before I win.

I hear that once a person wins all their previous plans change and reality sinks in 🤣🤣

However, I will do something good for those that are close to me 🙏

I believe winning the lottery jackpot is a 💯 % factor of luck.

May Fortuna, goddess of chance or lot vindicate me.
Lotterologist

Michigan
United States
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March 30, 2006
3,906 Posts
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Oct 3, 2025, 4:53 pm

Quote: Originally posted by JustMaybe on Oct 1, 2025
I won't make promises before I win.

I hear that once a person wins all their previous plans change and reality sinks in 🤣🤣

However, I will do something good for those that are close to me 🙏

You are correct.

I should have said, "At my best, if I won $200 million, I would share it with the poor. At my worst, I would think only of myself."
Il2c

Everything

United States
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November 23, 2024
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Oct 3, 2025, 9:28 pm

If I did, I've already decided that I wouldn't buy some 400-acre house.

All of my purchases would have to make sense.
I'm not moving to a totally wealthy neighborhood either.
A GF would still be the last thing on my mind.

If I were a billionaire, I wouldn't move too far from the beach (kinda like now).
I don't need too many cars.
I don't need to impress anyone.
I'd still own a bicycle, travel miles, until they fall apart as usual.
Maybe two or three (sensible) electric ones. See the mountains!!!!!!
A truck always comes in handy, and look for ways to have consistent finance flow.

Might even just keep playing "Pick3 NUMBERS", said the Magician....since it is fun, and do some UberEats when I'm bored.

Playlist: Hits!

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