What would you do if you won $1 billion lottery?
There’s almost $1 billion up for grabs in the latest Powerball and Mega Millions jackpots.
Here’s what you need to know and what to do next if you strike it rich.
1. Stay anonymous
If you win the lottery, your natural inclination may be to let everyone know that you hit the jackpot.
Imagine how many long lost cousins and childhood friends suddenly may appear to celebrate your newfound wealth.
However, your best move is to stay anonymous.
While the rules regarding anonymity vary by state, some states require all lottery winners to disclose their identity.
You can choose to remain anonymous when you win the lottery in six U.S. states: Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina.
The remaining states where Powerball is sold, including Washington, D.C., Puerto Rico and the U.S. Virgin Islands require that winners publicly disclose their identity, including their name, city and prize amount.
One way to protect your identity is to accept your lottery prize through a legal structure such as a blind trust.
2. Sign your lottery ticket
Make sure to sign your winning lottery ticket.
A lottery ticket is considered a bearer instrument, which means that whoever signs the ticket can claim the lottery prize.
However, what you write on the lottery ticket could impact your anonymity. Therefore, think twice and consult with an attorney before signing the ticket.
3. Decide how to get paid
If you win the lottery, you decide how you would like to get paid: either an upfront, lump-sum cash payment or annuity payments.
With the lump-sum payment, you receive the cash now in a single payment. Or, you can elect to receive annuity payments over the next 30 years.
For Mega Millions, the jackpot is the largest ever: $654 million. If you elect the upfront cash option, the payment would be approximately $372 million. For Powerball, the jackpot is the 17th largest ever at $345 million. If you elect the the upfront cash option, the payment would be approximately $199 million.
Which payout option is better?
hink of it this way: a dollar today is worth more than a dollar tomorrow. With a lump-sum payment, you can invest the cash today and earn a financial return.
With the annuity payment option, staggering the payments over 30 years may help limit any potential impulse to engage in reckless spending.
4. Get professional advice
Don’t go it alone.
Make sure you assemble a top-notch team of experts who can assist you with your wealth management goals.
At a minimum, your advisory team should include a financial, legal and tax advisor to manage your investments, tax planning, insurance and estate planning, among other important aspects of managing your wealth.
No matter how many advisors you hire, always remember to sign your own checks.
After all, it’s your money so make sure you know where it’s going.
5. Pay off your existing debt
With your new wealth, make sure to simplify your financial life..
Yes, perhaps you could earn a higher financial return by keeping the debt outstanding and investing in the stock market.
However, a simple financial house will make your life easier.
Remember: when you win the lottery, it’s all about enjoying the easy life.
View Original Post