The odds of winning the Mega Millions Lottery are 1 in 302.5 million and the Powerball is 292.2 million. Winning the lottery may be a dream that has recently come true for you. If it has, well done! But you’re probably left with lots of questions about what you should do with all of the cash that you now own!
You may want to know where to keep your lottery winnings, and whether you should opt for the lump sum that you’re offered or go for the annuity payments.
If you’re a lottery winner, what else do you need to consider?
In this guide, we’ll talk you through what to do if you win the lottery.
1. Remain Anonymous If You Can
When you win a life-changing sum of money, it will surprise you how many people will suddenly spring up in your life after a long absence. This is often the case when you publicly share the fact that you’re a lottery winner.
If you win, it’s always best to remain anonymous and forgo the celebrations in the news. That way, you’ll cut down on the number of people who turn up at your door expecting handouts.
2. Make an Appointment With a Tax Professional Before Claiming the Prize
Winning the lottery means you’ll suddenly have a huge tax bill to think about. Before you claim your prize, make an appointment with a tax specialist to learn how best to handle your winnings.
3. Don’t Make Any Sudden Lifestyle Changes
During the first few months after winning, don’t make any major lifestyle changes. For instance, you may want to buy your dream holiday home or an Aston Martin straight away, but hold off for a while. Make sure that any spending is modest.
Similarly, don’t quit your job just yet. Think about what you’re going to do with your life properly before handing in your notice.
4. Clear Your Debts
If you have a mortgage or any other debts, it’s important that you prioritize paying these off first. It can be very easy to get swept away with celebrations or going on spending sprees and to forget the basics.
5. Think About Whether Annuity or a Lump Sum Is Best
When you win the lottery, you’ll be given the choice of whether you want to get your money as a lump sum or paid to you as an annuity over 30 years. Give this point some serious thought.
Are you going to spend all of your cash immediately if you get it, or do you have the willpower to manage your new fortune effectively?
While it is possible to use a company such as Rightway Funding to help you unlock your annuity funds, this decision is one that will affect you for the rest of your life.
What to Consider If You’re a Lottery Winner
If you’re a lottery winner, it’s not just a case of grabbing the cash and spending it. You need to think carefully about your spending as being so rich comes with its complications. Get the right advice early on and it will help you make the most of your winnings.
For more great money-related articles, check out the finance section of the site.