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BILLION-dollar Powerball winner Edwin Castro has fallen into a trap, one financial expert has claimed.
Several experts have sounded the alarm on some of Castro’s recent purchases.
“The number one thing you should do if you come into a lot of money is to do nothing,” Glen James, a former financial adviser and host of My Millennial Money, told 7Life.
“Sit on it for three to six months – nothing is urgent.
“Don’t change your spending, don’t quit your job, don’t change your lifestyle overnight.”
But Castro has not heeded that advice.
Castro has purchased three multi-million dollar mansions since coming forward with the winning ticket of the $2billion jackpot.
His first purchase was a $25million Hollywood Hills mansion.
Castro then bought a $4million bachelor pad in his California hometown.
Most recently, he dropped $47.5million on a seven-bedroom compound in Bel Air.
The purchases came after Castro claimed a lump-sum payout of $997.6 million in January.
But James said that it’s best for lottery winners to claim their winnings in installments rather than a lump sum.
On top of that, James said that spending the newfound funds immediately isn’t a wise move.
“It is the trap that lottery winners fall into,” he said.
“The more you consume, the quicker it will run out.
“You need to calculate how you want to live and how much money you need to live.”
Meanwhile, other financial experts have also chimed in on Castro’s situation.
Experts from insurance company State Farm have said lottery winners don’t need to cash in their tickets immediately after winning big.
Every state has varying rules on how long a person has to claim a lottery jackpot.
The State Farm experts also suggested building a team of financial experts before coming forward with a winning ticket.
“As tempting as it may be to shout it from the rooftops and throw a huge ‘I won the lottery!’ party, keep it as much to yourself as possible, especially before turning in your ticket,” the State Farm team said.
