Expert Explains Exactly What NOT To Do If You Win the Lottery
The chances of winning the Powerball jackpot, which has a whopping $1 billion reward, are one in 292.2 million. If not claimed, this jackpot would be the third-largest top reward in Powerball history.
Notably, the biggest prize ever won was a staggering $2.04 billion in California in 2022. The likelihood of winning the golden ticket is entirely dependent on chance. However, if you hit the jackpot, you need preparation and the right strategy to retain your good fortune after the win.
Financial Planning for Success
Even though winning the lottery may seem like a dream come true, many winners face financial difficulty three to five years later due to poor preparation. BeFluentInFinance.com creator and personal finance expert Andrew Lokenauth offers some crucial advice for recent lottery winners.
First, avoid the impulse to sign the ticket immediately. Also, if possible, consider claiming it anonymously. To prevent any threats or extortion attempts, keep the victory a secret. Finally, to prove ownership, make time-stamped copies of the ticket.
The Right Professionals for Success
If you want to handle the windfall successfully, Lokenauth suggests getting a team of experts. You need a lawyer to create a trust and legal body to safeguard the funds. Also, you may want a tax attorney to help maximize tax planning opportunities and reduce tax obligations.
It would be wise to have an accountant monitor purchases, financial progress, and investments. Furthermore, you need to hire an estate planning attorney to organize the wealth transfer to future generations. Lastly, you will be doing a lot of good if you get a personal security and financial advisor.
Lump Sum or Annuity?
When choosing how to collect their reward, winners must weigh the benefits of receiving annuity payments vs. a big amount. A lump sum payment is often preferable because of inflation and the dollar’s declining value over time.
Winners can carefully manage the lump sum with a hedge fund or financial advisor to protect and grow their riches. This decision should be carefully considered because it might significantly impact the long-term financial security and estate planning of the winners and their descendants.
Keeping the “Fortune” in the Future
Despite the once-in-a-lifetime nature of winning the Powerball jackpot, long-term security and success rely on prudent financial planning. Jackpot winners who take the right steps, such as secretly claiming the ticket, working with a team of experts, and managing their money sensibly, can secure their financial future.
You can even leave a lasting legacy for your loved ones. Careful planning and taking good advice are the keys to turning a windfall into a success story that lasts a lifetime.