We’ve all heard the classic icebreaker: “What would you do if you won the lottery?”
For many of us, the answer may be flippant: we’ll blow it all on a fancy lifestyle, we’ll donate to charity, we’ll invest. But when it comes right down to it, what should you actually do if you go from middle-class to millionaire in a matter of seconds?
Here’s what to do if you win the lottery.
1. Don’t Shout It From the Rooftops
There’s a reason why many states allow their lottery winners to remain anonymous.
Once people learn you have millions—or billions—to your name, acquaintances and relatives you barely know may hold out a hand for some of the cash. The sudden windfall can disrupt or even end relationships, and it can even lead to unwanted harassment.
2. Decide How You Want To Take the Cash
Once you win, you’ll be faced with a choice: take a smaller lump sum payment, or opt to receive an annuity that gives you a little of your winnings each year.
However, there’s a trick to this: if you choose the annuity, you can work with a company offering structured settlements to transform your winnings back to a larger lump sum.
The details may depend on your state, but experts at settlement companies can help you decide on the next steps. Learn more about Rightway Funding, a company specializing in structured settlements, to see how to access your funds hassle-free.
3. Hire Professional Help
If you’re not used to managing the amount of cash you’re going to have, it’s time to call in an expert. Work with a financial advisor to handle investments and offer financial lottery advice, a CPA to tackle your changing taxes, and a lawyer to set up trusts for your family. Consulting with a good lawyer can also help you avoid scams associated with winning the lottery!
4. Be Smart With Your Money
Some lottery winners have described their big win as a curse — and it’s not hard to see why.
After winning the lottery, you’ll have access to more money than you’ve ever had, which can be overwhelming, to say the least. If you’re going to be smart about it, however, treat that money like you would your regular income: have fun with a little of it, but save the rest for a rainy day. Watch out for scams, invest wisely, and you’ll come out of the experience better off than most lottery winners.
Know What to Do if You Win the Lottery
Winning may be a long shot, but it’s still a good idea to know what to do if you win the lottery someday. If you’re hoping for a positive outcome after a win, however, it’s a good idea to be smart with your money now. Use the tips above to manage your finances and create good habits that can help you stay rich if you actually win.
Looking for more personal finance tips to help you hold on to your money? Check out our other posts for more!
Adobe Stock royalty-free image #163018113, ‘Young successful businessman win a lot of money.’ uploaded by vchalup, standard license purchased from https://stock.adobe.com/images/download/163018113; file retrieved on January 23rd, 2019. License details available at https://stock.adobe.com/license-terms – image is licensed under the Adobe Stock Standard License