Cramer: YOLO! How I would invest Powerball loot

Cramer: YOLO! How I would spend Powerball winnings

Jim Cramer has a memo to everyone in America who is salivating over winning $1.5 billion in the Powerball lottery — don't bother playing.

"I am going to win, and I'm not just saying that because I have delusions of grandeur, although that is certainly part of it," the "Mad Money" host said.

In fact, Cramer has a higher level of confidence in the numbers he picked for the lottery than he does with any oil stock that sells below $10.

So, if Cramer wins, what would he do with the money?

Why the heck not? You only live once, or as the kids say, YOLO!
Jim Cramer
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First, he would take the winnings in a lump sum rather than spacing it out with an annuity so that he can tap into the power of compound interest.

Second, Cramer would not try to make more money with his capital. He will pay taxes, and collect the net winnings of about $750 million. But once he is that wealthy, he doesn't see the reason to roll the dice, so he would be very conservative in his investments.

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Since Cramer does not think interest rates will be rising rapidly, he would like to focus on short-term fixed income to avoid locking himself into the current low rates.

Third, Cramer would shy away from any stocks with exception of utilities. Cramer considers this group to be very steady, and that would allow him to take advantage of compounding. He would do so by selecting a diversified group of utility stocks.

Fourth, he would give most of his winnings away. He would write a check to a trust and then do the homework to find deserving charities.

"When I gave up my hedge fund in 2000 I recognized that there was more to life than making money. Giving back this lucky fortune sounds like a much better idea," Cramer said.

Finally, if Cramer wins the jackpot he would buy his own island. Or he would take advantage of the strong dollar and buy a castle in Ireland or a villa in Italy, preferably between Florence and Siena.

"Why the heck not? You only live once, or as the kids say, YOLO!" Cramer added.

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