Hit the jackpot with Powerball? 10 key things you must do after winning the lottery

There are all sorts of things to say about what to do after winning a lottery jackpot (especially a huge one like the Powerball). Some of the advice is great, and some of it is just plain dumb. Don't panic, here are the steps you should really take!

1. Take a breath and don't be impulsive!

Oh my god! You've hit the jackpot! Your first reaction is to get excited. But you have to calm down! This is the easiest time to make a decision you regret.

Give yourself some time to slow down, a few days or even a few weeks. Going to work, walking the dog, and maintaining a normal life will help you get your mind right and figure out what's most important.

Keep your mouth shut! Don't brag about it on your friends or Twitter or whatever! And don't talk about it in person! Otherwise you'll have tons of people asking for money or giving you “ideas”. Tell only your most trusted family members, friends, or talk to a reliable professional. 2.

2. Get help! Don't do this on your own!

So much money, involving legal, tax, investment issues are too complex, one person to do it is very easy to make a big mistake, and lose a lot of money! You need a “dream team”:

financial advisers: help you manage money, investment plans, legal tax savings. Look for the kind of specialized services over the rich, do not look for only sell products.

Accountants: help you figure out how much tax you have to pay (federal and state taxes can be high!), make sure it's legal, and also help you figure out how much you have to pay in taxes. ), make sure it's legal, and save you some tax money. Even if you live in a place where lottery winnings are tax-free, there may be other tax issues.

Lawyer: To help you protect your property (e.g., set up a trust - trust), write a will, and arrange how the money will be distributed to your family in the future. Look for an experienced one too.

3. Choosing how to get the money: Lump Sum or Lump Sum?

There are usually two options:

Lump Sum: A large sum of cash immediately, but much less than the advertised jackpot total. The upside is that you can pay off debt, invest, and buy immediately. The downside is that the money is in your hands and you have to manage it well or it will be gone when you spend it.

Annuity: A portion of the money is given to you every year for 20 or 30 years. The advantage is stability, like receiving a salary, not afraid to spend it all at once. The disadvantage is that the money is slow, may not be enough when you need big money urgently, and the money may depreciate in value (inflation).

4. Do the math and plan!

Start by figuring out exactly how much money you have right now (bonus + what you had - what you owe).

Think about what you'd like to do with that money the most. In order of importance:

Pay off all your debts (credit cards, mortgage...)

Save a “life saver” (3 to 6 months of living expenses) and put it in a safe place.

Invest for the long term and let your money grow.

Want to be charitable? Donate some money.

5. Guard your pocketbook!

A large sum of money can easily invite trouble:

SCAMMERS: There will be all sorts of people trying to scam you out of your money! Be wary of any pie-in-the-sky “investment opportunities” or requests from strangers.

Be wary of any “investment opportunities” or requests from strangers that come out of thin air. A trust set up by an attorney can protect your core assets.

Friends and Family: Be prepared for a flood of requests for money! Figure out how you're going to handle it (e.g., set principles or limits). 6.

6. Figure out how much you'll pay in taxes!

This is super important! In the US:

The federal government may take up to 37% of your winnings directly!

Your state may take another 5-10%!

Even if you're lucky enough to live in a place where the lottery is tax-free, your accountant will be able to help you with other tax issues and try to pay as little as legally possible.

7. Invest securely!

With more money comes more investment options, but don't invest blindly! Talk it over with your financial advisor.

The goal is to diversify your money into different places, don't put all your eggs in one basket:

Part of it goes to safe places (e.g. treasury bonds, savings).

A portion in stocks (risky, you may make as much as you lose).

Consider buying some real estate (house, store).

8. Want to do good? Can!

With money, many people want to help others or support their favorite causes.

You can donate money directly to charitable organizations.

If you have the money and energy, you can even set up your own foundation.

Or invest in projects that are good for society and good for the environment.

9. Beware of changes in relationships!

Winning the jackpot can really change your relationship with the people around you:

Requests to borrow money will be overwhelming.

Family members may get weird with each other.

People you don't normally contact may suddenly pop up to get close. Be prepared.

10. don't get carried away! Remember what's most important!

You have more money, but you are still you! Don't let the money go to your head.

Use that money to pursue the things you really love.

Cherish the time you spend with your loved ones and true friends.

Think about how you can use this money to make your community a better place or support a cause you believe in.

Remember:

Winning the Powerball jackpot is an absolute game-changer! The keys to really bringing long-lasting happiness and security with this money are: calm down, get professional help, figure out your options, plan well, protect your money, manage your taxes, invest it wisely, and keep a level head! That way, this heavenly fortune can truly be a blessing in your life.