Once jackpots surpass even the hundreds of millions – let alone the billions – it’s not uncommon to see jumbo sales in such tickets. To win the lottery is one thing. To keep it? For years? That’s another.
A CPA, financial advisor, lawyer – all are essential to properly manage financial needs.
Pay off your debts
Lately, the jackpots for some lotteries have grown to hundreds of millions or billions of dollars. When a lottery reaches this kind of success, it can be hard not to just get swept up in the excitement of it all – and yes, there is a lot of excitement to do with winning the lottery. Although it is undoubtedly a massive windfall, winning the lottery can also come with other problems –for example, people who come out of the woodwork looking for handouts and certain legal issues. So, it’s crucial that you handle your lottery winnings in a proper manner.
In other words, the first order of business for starting over should involve paying off existing debts and establishing a sufficiently secure financial foundation for your new, independent life. 3. You should sign your ticket to assert your ownership and prove that this ticket is truly yours fourth and final order of business should begin by signing the ticket: ‘I, [your name], sign over this ticket.’ In order to establish your starting over with this ticket and fully assert your ownership, it would be optimal to also sign the ticket backwards so that it reads ‘eniruD sgnit yo stnev tirp ni’ as well.
Another: set a budget. Have you set a goal for your lifestyle, to live within means. When you are creating your budget, you might go on the occasional expensive vacation, and buy yourself an expensive necklace every so often. But just remembering that you need to make money to pay for food, pay your bills and your mortgage helps keep things close to reality.
Invest your winnings
It is tempting to turn to one’s adviser or broker at once and transfer the entire jackpot into savings, retirement annuities, investment funds, shares or almost anything else that promises a good return. Resist this urge, and diversify into a portfolio containing a significant portion of your winnings in low-risk securities such as bonds or mutual funds.
Save for emergencies and retirement in high-yield savings accounts – Money saved because it has to be, or because you’re unsure what to do with it, will yield greater dividends in interest-bearing savings accounts over the long run. If you can save six months of living costs, so much the better.
Another good thing to do with some of your winnings could be to give away a portion to charity – a way of investing in society at large as well as a way for your philanthropy to gain tax breaks before you decide to give. Just make sure you check with someone who knows about such matters before you give – perhaps he could set up trusts to reduce the tax liabilities of your donations.
Pay your taxes
If you get a lot of money, the first thing that you have to do is to pay your taxes and this way you keep more of your own money and in the second place, you can not spend too much money instead you can save more for the future and achieve your financial goals.
Decide ahead of time how much you’ll spend or save, and where you’ll allocate the investment. Ask your accountant and a financial advisor – specifically one who has experience serving the affluent – to help you determine how much to spend or save and what type of investment; moreover, they can help you project when you can plan on retiring.
Do not tell any person that you won money, because someone might rob or extort you. Give some of your money to charity so as to help humanity and elevate society.
Set financial goals
For instance, it can be extremely useful to organise your finance around financial goals so you have a clear understanding of where your money needs to be deployed and how far you are from those targets, ensuring money doesn’t simply slip away. Your financial goals should always be SMART – specific, measurable, achievable, relevant and time‑based. And they must link back to the things that motivate you: working with an adviser or a wealth manager might help you manifest these goals back into an overall financial plan.
While the receipt of a jackpot award in the lottery can be one of the most ecstatic few minutes of your life and will change your life forever, it can also trigger challenges. Fortunately, by staying calm and assembling a team to support the management of the windfall, you are paving the way for the jackpot to benefit yourself for years to come. Addressing debt, investment and charitable giving are all components to the recipe of merry money, and these steps can help lottery winners avoid the pitfalls associated with their infamous curse – these tips will ensure your winnings will last you for the rest of your life!
