Things To Do If You Won The Lottery

The odds of winning the lottery are 1 in almost 175,000,000, which is about 60,000 times less likely than being hit by lightning in your lifetime. Playing the lottery is also not an excellent investment strategy.

Things To Do If You Won The Lottery

Plenty of us, on the other hand, have probably fantasized about what we'd do with an extra $100 million. In actuality, if you were extremely fortunate, financial experts (and prior lottery winners) offer some suggestions on what to do when you win the jackpot.

Nobody wants to look back on a giant lottery win and say, That's when everything wrong happens. But, with careful planning and the correct attitude, no one has to.

If you've recently won a large lottery jackpot, it's time to discover what you should do in the case of a grand lottery win: before claiming your reward and throughout the award process.

What to Do Before You Can Claim Your Prize

Sustaining good fortune is built on a solid foundation. Take a breather after checking that your ticket is a winner, but before you hurry out to retrieve your prize.

Even while you take precautions to safeguard your winning ticket and identity, seek the advice of reputable authorities. They can assist you in managing your new money and avoiding abrupt job or lifestyle changes.

 

Keep Your Ticket Safe

Take precautions to safeguard your lottery ticket before proceeding. If you lose it and are unable to show that you are the rightful owner, you will, At the very least, make physical and digital copies of the ticket, ideally in two locations: a secured cloud storage account and an external drive. If required, invest in a home lock box or safe, or put the ticket in a bank safe deposit box.

 

Don't Be Hasty to Claim Your Prize.

Don't go out and claim your drawing prizes as soon as you have your ticket. This is crucial for two reasons.

For starters, if your reward is large enough to garner media attention, claiming your ticket within a week of the proclamation risks causing more of a commotion than necessary. Second, and perhaps more crucially, waiting at least a week to claim your award gives you enough time to prepare for whatever comes next.

If you wish, you should be able to wait much longer than a week. Most lotteries give winners six to twelve months to collect their rewards, but check the guidelines of the issuing institution to ensure you have as much time as thought.

 

Employ Professionals

You are most likely not a tax attorney, a family law attorney, or a licensed accountant. When you win the lotto, you must quickly surround yourself with these four categories of specialists. You're specifically looking for:

  • A tax attorney specializing in assisting high-income clients to reduce their tax liability while avoiding IRS penalties.
  • An estate planning or family law attorney specializing in creating estate planning documents such as wills, trusts, and prenuptial agreements. You can also manage these documents online with Trust & Will.
  • A fee-based or fee-only financial advisor or financial planner who has sworn to work as a fiduciary (in your best financial interests, not theirs), preferably with substantial wealth management experience.
  • A certified public accountant who assists wealthy families in organizing their money and guides you through what is likely to be a complex annual tax preparation procedure.

 

Change Your Address and Become Unlisted

You won't be able to dodge those with their hands out once you've claimed your prize.

You'll hear by people you haven't thought of in years: distant cousins, long-lost friends, college roommates, and even coworkers by five jobs ago, not to mention investment advisers and lawyers with questionable ethical credentials.

Though it will not stop the flood, adopting efforts to minimize your profile will make it more manageable.

Change all phone numbers affiliated with your immediate family to new unlisted numbers right now. While your previous phone number will still be available online, it will no longer function.

Due to a large number of websites with publicly available contact information for US people, completely delisting your address is challenging.

 

·       Once you've received your finances

 

bank it

Don't walk up at the cashier's counter with a check for millions of dollars; instead, consult with the bank's higher management or private banking department ahead of time to explore the best options for holding huge sums of money. Remember that the government only covers individual bank accounts up to $250,000, so consider dividing your wealth among various accounts and banks.

 

Make a budget.

 You need a budget when you have all the money you'll ever need. It's not at all stupid. Sit down with your advisors and determine how much money you truly have after federal, state, and local taxes. What new annual costs you'll have (for things like property taxes, upkeep, and paying your financial team), and what amount do you want to give to charity. Consider potential higher-education costs for your family and how much you'll require in your golden years. Then, establish rigorous guidelines.

 

Create a charitable and giving plan

When word gets out that you've made it big, you'll be inundated with financial requests by friends, family, and charity. Talk to your team about gifting tax arrangements and how much you can donate each year while still living the life you want. You could also consider establishing an official charity foundation.

 

Keep your perspective and feeling of self in check and don't give up your job.

Certainly not until you have your lottery winnings in hand, but even then, consider continuing to work part-time or pursue a passionate interest. Depending on how important employment is to you, you might want to pursue a new career or turn to school to study something you've always been interested in.

 

Maintain a healthy mind and body

We all know that money can't buy happiness—some people claim that winning the lottery and dealing with the money and pleas for help and loans ruined their lives by adding stress to their lives. Eat well, exercise, chat to close family and friends, and get professional help if dealing with your sudden fortune creates too much emotional stress.