What to do if you win the lottery

It's crucial to ask one question before you spend your fortune.

What are you supposed to do if you win the lottery jackpot?

Here are the basics and steps to help you create your financial lottery game plan.

  1. Sign the back of your lotto ticket

PROMOTED

Although it sounds simple, it is actually the most straightforward step.

Despite all the advancements in technology, you must still sign the back of your winning lottery ticket.

Why? A lottery ticket is a bearer instrument, just like a check.

The lottery prize can be claimed by the person who signs the winning ticket and shows a valid photo identification.

Sign your ticket immediately after purchasing it to protect yourself from losing your winning ticket.

  1. You can choose to make a lump-sum payment once and then pay it off in installments.

You have 60 days to decide how you would like to be notified of your prize.

There are two options when you win the lottery. You can choose to receive a lump-sum payment once and then 30 payments over 29 years.

You will be paid income tax immediately if you choose lump-sum payments.

Each installment will be taxed if you choose an annuity-based installment plan.

Which one should you choose?

It all depends on your personal preference.

A dollar today is more valuable than a dollar tomorrow, financially. You can choose to receive the lump sum payment and have the security of knowing that all funds will be received today.

An annuity payment program can be a good option if you want to control your spending and set aside money.

It is important to compare the after tax proceeds and your expected investment return (lump sum payment) with the aftertax annuity payments (installment payments) and the intended investment return.

You should consider the time value money, which is how much you can make under each scenario, and compare the timing of the payments you receive.

  1. Your financial and legal wolfpack is ready

You may need assistance managing your lottery winnings.

Trusted advisors are essential to assist you with a variety of legal, tax, and investment issues.

You can expect to be approached by almost every type of advisor willing to help.

Spend the time to carefully select who you want in your circle. You should vet each advisor you retain.

This is a job you should not outsource. You are responsible for protecting your money.

Interview each candidate and ensure that he/she understands your goals.

To ensure that they are licensed, make sure you verify their credentials.

Advice is not always free, so be sure to fully understand the fee structure before you hire them.

Hire a team who will tell you no.

You don't want a team who says yes every time you ask for money for large purposes.

You can decide how much you spend on your money. However, it is helpful to have someone who will give you honest advice, even if that's not what your looking for.

  1. Budget is important!

You just won hundreds of millions of dollars. You still need a budget, why?

When you are a millionaire, financial discipline does not disappear.

Although you may have more money than you need, that does not mean you should abandon personal finance principles.

You may have more options to buy things if you have more money.

Budgeting is therefore even more important.

Create an action plan to account for your monthly and annually spending. Identify your most important expenses. Identify your income sources.

Living off your income is one way to instill financial discipline.

You can therefore preserve your principal.

  1. With an estate plan, you can take care of your heirs

Now is the best time to update an estate plan you already have.

You have to make one if you've never done it before.

It is important to make sure that your estate plan mirrors your new reality after you win the lottery or experience any other major life changes.

You will need to create an estate plan to protect your estate and to tax-plan. Also, consider how you can provide for your heirs.

  1. Say goodbye to your debt

It's time to go debt-free.

You can have complete peace of mind by paying off your student loans, mortgages, credit cards and personal loans.

This is the quickest way to financial freedom.

Before you do, assess your financial obligations and future requirements.

However, not all debt is bad.

You may be able to invest in other assets that yield higher returns, such as a low-interest loan.

Consider your debt as part of your overall financial plan.

  1. You should choose charities that you feel are important

You can change your life by winning the lottery.

You can also change the lives of others.

You can make a difference by supporting countless charities.

You can choose the charities that matter most to you and work with your advisors in choosing the best charities to support.

Your advisors may also be able to help you create a charitable trust, or another tax-efficient vehicle for giving back.

Powerball Lottery Q&A

How can you play Powerball?

You can choose five numbers between 1 and 69, or one Powerball number between 1 and 26. You can also choose Quik Pik to have the numbers selected automatically.

Where can I play Powerball

Powerball is administered by the Multi-State Lottery Association in 44 states, Washington D.C. Puerto Rico, and the U.S Virgin Islands

What is the cost of playing Powerball?

Each ticket is $2.

Is there an upper limit on the number of tickets you can buy?

No.

What are your odds of winning the Powerball Jackpot?

Powerball is a lottery where you have a chance of winning a jackpot worth approximately 1 in 292,000,000.

What are your chances of being struck by lightning?

About 1 in 700,000.

What are the chances of winning the next Powerball Jackpot if there isn't a winner?

The odds of winning the Powerball jackpot are 1 in 292,000,000. They do not change depending on how much money is available.

Is this the biggest Powerball jackpot in American history?

This is the second-largest Powerball jackpot in American history. In January 2016, the largest Powerball jackpot was $1.6 billion. It was split between three winning tickets.

Follow me on Twitter and LinkedIn. You can visit my website and see my other works here. lottery what would you do if you won the jackpot