Brad Duke // Break down your investment strategy (Courtesy Idaho Lottery)

Larger image

Brad Duke

Too often unsuspecting lotto winners waste their fortunes through poor investing and hapless money management. So one way to keep this from happening is to break things down — as in, meticulously break things down. In 2005, Brad Duke, a 34-year-old Idaho gym owner, struck a $225 million Powerball jackpot. After taking a lump sum payout of around $85 million, Duke hired a team of financial advisors to help him reach one lofty goal: become a billionaire. The lotto winner developed a simple, yet ambitious strategy to reach his target but, perhaps more importantly, he stayed smart with his nest egg. According to Fortune magazine, Duke put $45 million of his winnings into safe, low-risk investments and bonds, $35 million into more aggressive investments such as oil and real estate and paid off the $125,000 mortgage for his modest Idaho home. He also laid out a plan to give each of his family members around $12,000 annually, the highest possible bequest without a state tax consequence. "I [was] looking at statistics where [lottery winners] in ten years have nothing," Duke said. "In ten years, I wanted to be worth about ten times as much."

* Surprise successes on 'Dragons' Den'
* Movie genres that make the most money
* College offers money-back guarantee on tuition