The old adage is true - to a point. Money won't buy or insure your happiness although it is a fact that having money will make life much easier. The number one thing most people stress over is their financial situation, so it makes sense that if you were filthy rich, you would have much less stress. Yet it seems that we often hear of people who have attained massive wealth quickly only to lose it in a short period of time. In fact, the majority of lottery jackpot winners end up penniless. (Although I am unable to find the actual statistic, my research puts that rate at somewhere between 70 - 90 % within five years). With that in mind I offer up to you some things you can do to hang on to your money for longer, as well as some things you could do with your wealth to enrich your life.

When looking into the stories of people who have come into great amounts of money quickly, there seems to be a common thread - everyone wants a piece. Whether it be your brother, mother or your neighbor, everyone wants a taste of your money for their own purposes. And though some of those proposals may sound reasonable at the time - investing in a business, or helping a friend out of debt - often they only lead to strain on your relationship. Human beings are fascinating creatures. Though we may require assistance from another for whatever reason, often, when that assistance is received, we in turn resent the person who helped us. Usually this stems from feeling inferior to our saviour. For example, if I won the lottery and you needed ten thousand dollars tomorrow to save your house, perhaps I would lend you the money - after all, I have plenty. And most likely, I wouldn't expect a payback, just your genuine heartfelt gratitude. Yet you may feel like by me giving you the money I was only proving to you how "superior" I am when in fact I was only doing you a selfless, kindhearted favor. Or perhaps the opposite is true. I didn't feel as though saving your home was my responsibility and refused to lend you the money. Now, you feel as though I am being superior to you by withholding my gift, maybe even lording it over you and proving your financial subordinance. Either way, the strain placed on our relationship may cause it to degenerate over time at which point we have both lost. For this reason, when the time comes to choose between our family and friends or our money, we will often go out of our way to help the former. The problem being that some people only have their interests at heart and while we fritter away our vast sums of money to them, we in turn become financially challenged ourselves. I'm not saying don't help your friends. I'm saying wait. Give it a week or two for the reality of the situation to sink in. You've just won the lottery. Great! Typically, (in California) if you've won a $10 million dollar jackpot, you're only going to take home $4 million after taxes. And should you choose to take that in one lump sum, you're looking at $2 million. Not even close to ten. However, if you've given yourself a buffer zone of time to assess the situation for what it actually is, and not the hype you will be better positioned to make smart, logical financial decisions. Perhaps after your sudden windfall is a great time to take that dream vacation to Italy.

Now that you have learned that saying 'yes' to all requests can be hazardous to your wealth, we can focus on your long term financial goals. Your goals in this arena, of course, should be aimed at living a comfortable lifestyle for the rest of your natural days while managing to maintain the majority or your original capital in reserve. By this, I simply mean that you should make wise, stable long term investments that pay a hefty dividend for you having to do virtually nothing. Of course, there will be the large, immediate purchases you will have your eye on. You'll want a new house, a new car and maybe a new wardrobe. And buying all of those things is fine if you can afford them. But before you go crazy and buy a multi million dollar home, two Ferrari's, and a custom Versace wardrobe you may want to consider your savings account. Have you ever wondered how people like Paris Hilton or Brittney Spears can go out and party every night, go on lavish shopping sprees and travel the world while seemingly having no income? Simple: Money, like rabbits, breeds money. In fact, it's almost automatic and it's the easiest way for you to make money with money. And you have options. The bank you deposit with now, for example, probably offers you a savings account with an interest rate somewhere around 1%. But if you were to deposit, say, 10 million dollars, they may want to offer you an account with an interest rate of 5%. Simply put this means that for every million dollars you deposit, the bank will pay you 50,000 dollars per year. That's fifty grand, year in year out that you get paid for doing absolutely nothing. So on 10 million dollars in deposits, that's an annual dividend of 500 thousand dollars. And that's just a savings account. Let's say you were to invest in long term Certificates of Deposit (CDs) with an Annual Percentage Rate (APR) of 7% for five years. (Five years is considered long term in the CD world). That would be seventy thousand dollars of interest per year, compounded for five years on a million dollar CD. At the end of your five years, your CD would have an estimated value of $1,402,551.11. That's $402,551.11 of interest paid in five years that you would be able to collect at then end of your CD term. Or you could roll it over into another CD and make even more. Or perhaps you would prefer to have liquidity in your assets. (Instant availability). There are online banks, such as HSBC Direct or ING Direct that offer savings accounts with up to five times the national average percentage rate on their accounts. In essence, you could place your entire winnings or windfall into a high-yield savings account and never have to work again, while drawing a "salary" of 5-7% interest on your money. Just think - on $10 million in deposits at 5% that's 500,000 dollars a year in profit. Meanwhile, your original deposit never gets touched and will be there for your future generations. Check with your bank to get their current interest rates on deposits, CDs and Money Market accounts.

Even though you have secured the majority of your money in an FDIC insured institution that pays you a yearly dividend, you may want to consider a few other options for your investments. I would recommend to you that you find a qualified, seasoned investment professional and meet with him or her to see what kind of ideas they have for getting you a good return on your investment. There are literally hundreds of mutual funds and stock portfolios available and finding a solid one on your own can be difficult. Yet these types of investments can be very lucrative and should not be overlooked. A typical return on investment one can expect should be around 3 - 9% annually and are considered very safe for long term holdings. There are even funds that have been known to pay as much as 15% though they may be slightly more of a risk. Again, I urge you to speak to a professional investor to determine what types of investments are best for you. Don't worry - in the case of lottery winners you will have investors calling you on a daily basis. Another option to consider is the United States Savings Bond, offered by the Treasury of the United States. These bonds will double in value every eight to twelve years and are backed by the federal government. For example, a $100,00 bond only costs $50,000 up front. They offer excellent return on investment, though the money you use to purchase the bonds is tied up until the bond reaches maturity and there are substantial penalties for early withdrawal. Any way you go, as long as you think long term and look at low risk investments your money will always work for you.

Now that you're a multi-millionaire, every known charity in the world is going to come looking for you with their hand out. It's simply the nature of the beast and really, what's better than helping people in need? Want to feed the children in Africa? There's a charity for that. Want to fund research for Cancer, AIDS, Autism, or any of the other million of human maladies? There are charities for that. Maybe you like animals better than people. You can donate to the ASPCA, The Wildlife Fund or Greenpeace. For any of your passions there's a charity that's willing to take your donation and do some good. Yet it's important to research these charities and see where your money really goes. In fact, if you are considering a large donation, I recommend meeting with the local chapter or board members and asking what percentage of your money is actually going to help the cause, how much goes to the officers and representatives, the amount of time it will take to get to the end recipient and how they select their recipients. You may find after spending time with these charities that you no longer want to give them your money. Move on to the next one and repeat the process. Although most established charities are ethical and responsible, there are a few that are not and I urge extreme caution. In most cases you can rest assured your money has gone on to do some good although this is not always the case as evidenced by the Red Cross. ( http://www.cbsnews.com/stories/2002/07/29/eveningnews/main516700.shtml )

In closing, there is so much that you can do with your money, future millionaire, that I know the choices can be overwhelming. However, I am confident that with a little care you will navigate many of the pitfalls that cause many new millionaires to become welfare recipients. To summarize, don't overspend. Know what you want, need and can afford. Keep your money safe: stay away from bad investment advice and beware of those who only want to take from you. Make your money work for you: If properly managed your money will always make more for you and be there when you need it. Be charitable. Not only is it good for others, it's good for you. And last but not least, always remember: money will never buy you happiness. "Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give." - William A. Ward