Financial Advice From All The Sharks
In light of last night's $400 million Power Ball Jackpot, a very wise and smart reporter who had access of all the Sharks still filming season 5, asks them for financial advice if you win the $400 million dollar prize. With a combined net worth estimated over $5 billion, all 6 of the Sharks on the Shark Tank Show took turns giving free financial advice.
When Mark Cuban was asked "what would your advice be if someone were to win the Powerball?", with His reply being "put it in the bank" without even thinking about it. Mark goes on to say "whenever you get a large sum of money fast, then all kinds of things happen that you never anticipate". After settling up with Uncle Sam, you will also have a lot more Best Friends and a lot of people wanting to give you advice on how to spend all this money.
Sure, if you just have your money sitting in the Bank you're not going to make any interest to speak of these days, but your money is "safe" and not going to disappear. Besides after taxes, you will have around $200 million free and clear, so how much more money do you need to make in the short term anyway? Marks main advice is theirs only one goal and that's to "keep it". (Great Advice)
Daymond John's financial advice is if you win the lottery, #1 don't tell anyone that you're now a multimillionaire. Everyone has a $10 or $20 thousand dollar problem and they will come out of the woodwork if you tell them too soon. Daymond goes on to say "go and hire the Great Financial Advisor because the majority of them lose it right away". If you do win the Power Ball Jackpot, you also have an open invitation from Daymond to go hang out with him and share your new found wealth.
Robert Herjevic had 3 words of advice if you’re the sole winner of the lottery when He said "Buy A Ferrari" with a big smile on his face. Robert unapologetic in his answer, then went on to say "because you know what, you’re not going to be here someday". With $200 million already sitting in the Bank, why not just enjoy the rest of your life and do whatever it is that make you Happy. Herjevic says "too many people spend their entire lives building to a point, and then they never get to enjoy it".
Now Barbara Corcoran expands on Mark's advice by putting all your money in a Bank for 3 years earning a low-interest rate. She also touched on Daymonds point that everyone you know will have a $10k problem and will be looking for you to help them out. Barbara speaks from experience as this is exactly what happened to her when she sold a Business for $66 million.
Lori Greiner's financial advice starts out with "Oh Boy" as she thinks of how many important decisions will need to be made. Lori's main advice is "invest it wisely and don't go crazy and spend it all". She goes on to say "calm down, reflect and be careful" as if it’s more of a warning on what it would really be like to win that much money all at once.
Kevin O'Leary is the last to give his Financial Advice and comes across almost as if he's on a job interview looking to help you invest some of your money. While Kevin does run the successful multi-billion dollar O'Leary Funds when he's not starring in The Dragoons Den or Shark Tank, his advice doesn't come cheap and worth listening to. Kevin's main tip is to diversify your money spread out over several sectors. O'Leary says "the biggest mistake people make is they don't diversify, they put it all in one basket which is a huge mistake". Kevin goes on to say "I have been a Financial Investor for 20 years and made lots of mistakes, but the one thing that's always saved him is never investing more than 5% in any one investment, never more than 20% in any sector, 50% Bonds and 50% Stocks and you will never go to zero.
So there you have it, Free Financial Advice from all the Sharks. Personally I like all their ideas and a combination of all the Sharks advice would set you up nicely for life and made sure you would never go broke like so many lottery winners have in the past. It's fun to dream about winning the lottery, but the reality is if you ever "Really" want to be worth $200 million, it's going to take a lot more than a $2 ticket and pure dumb luck.