Cramer Would Invest 10% Of Power Ball Winnings Into Gold

(August 24, 2017 - by Anna Golubova)

(Kitco News) - If winning the Power Ball is ever in your fortune, don’t forget to invest at least 10% of that into gold, but make sure to store it in different countries, as government confiscation of the bullion is never completely out of the realm of possibilities, advises financial commentator Jim Cramer in his latest post.

“Okay, so you just won Power Ball,” writes Cramer. “I would immediately put ten percent of the winnings in gold. We don’t know what’s going to happen in the world. Buy bullion because gold, unlike paper, has kept its value over time. Don’t store it all in one bank. Don’t even store it all in one nation. Remember, our government confiscated our gold in 1933.”

Some other good advice from Cramer for people who just came into a lot of money at once is to make sure all the taxes are paid. 

“Do it immediately and get an accountant who understands taxes so you never ever have to worry about the one thing that destroys more wealth than anything but health -- the government,” the host of Mad Money and co-founder of TheStreet.com writes.

Cramer also warns not to be “gullible,” invest wisely, and avoid unneeded risk.

Diversifying the newly acquired money is the key. Aside from investing into gold, Cramer also suggests buying real estate.

“Buy an older mansion with lots of land and buy masterworks art to put in it -- and be sure you have an alarm system. Mansions and masterworks have been known to maintain their value, even in hyperinflation,” he says.

Government obligation bonds could also be a way to go.

“Remember you only need to get rich once!”