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I don’t really buy lottery tickets. Not because I don’t like gambling. I love it. I live life dangerously. I eat pizza left out overnight. I check out other women when my girlfriend’s not looking. And I ride the train to work almost every day. In Chicago. I don’t know if it will be this week or next week, but eventually some 98 year old women in rural America is inevitably going to win the PowerBall jackpot.
As of today, we’re talking a $1.3 billion prize. That’s billion with a capital B. Here at Zacks we want to make sure you don’t wind up dead, broke, or dead broke after cashing in your ticket so I’ve got some pro tips for what to do with your winnings.
Number one, hire a body guard. Find a good one too. I’m thinking Kevin Costner. Too bad he couldn’t save Whitney from crack. You know what, rather than just hiring a body guard, how about buying yourself a military grade drone, armed with cannons to stop anybody out there from messing with you.
Heck, buy the company that makes the drones. AeroVironment (AVAV) is a Zacks Rank #2 (Buy) in the aerospace and defense equipment industry that ranks in the Top 37% of our Zacks Industry Rank.
Two, buy some life insurance. Rich people stay rich by doing awesome things like Irrevocable Life Insurance Trusts or ILITs. You give away control of your money to a trust which in turn buys life insurance on you. The insurance proceeds are outside of the realm of your estate when you die and hopefully are big enough to cover the estate tax the Feds take. You didn’t need to worry about that while you were digging through your couch cushions to find the $2 to buy that lotto ticket.
But now that you’ve got a gold toilet that flushes champagne you need to protect your neck. May as well buy the insurance company while you’re at it. James River Group (JRVR) is a Zacks Rank #2 (Buy). A big part of that rank is the streak of earnings beats the company is on. We’re talking four in a row as shares have gone from $21 to $33 over the last year or so.
You don’t want to go around spending money without getting your rewards points. You’re a baller now. Goodbye 550 credit score. Hello Black Card from American Express (AXP). Oh, excuse me, the Centurion Card. Twenty one thousand a month on credit card. No problem. $2,500 a year fee. Nothing for a dedicated concierge, complementary companion airline tickets on international flights, personal shopper at Gucci, Escada and Saks.
Free hotel rooms, Avis (CAR) Rent-A-Car President’s club. The list goes on and on. American Express is a Zacks Rank #3 (Hold) right now but has Value and Growth style scores of “B” and an “A” for Momentum.
If you’re single or have any daughters that are single after winning PowerBall there is one last important question you need to ask. WHAT ABOUT DAVE?
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JAMES RIVER GRP (JRVR): Free Stock Analysis Report
AVIS BUDGET GRP (CAR): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
AEROVIRONMENT (AVAV): Free Stock Analysis Report
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