Categories
BLOG

financial advisors for lottery winners

Lottery Financial Advisor: What to do if you Win the Powerball Lottery

Dear Florida Powerball lottery winner, congratulations on your win!

You beat the odds (1 in 175.2 million) and have the distinct honor of being the largest single lottery winner in U.S. history. As someone who has developed a national reputation for working with sudden wealth recipients – or as a client recently remarked a “lottery financial advisor”, I want to share with you a few ideas on how best to handle the rush of emotions of winning — and possibly the anxiety and paralysis over what to do now — with a few best practices I’ve learned over the years of working with clients who come into a windfall.

Here are six things to do before you claim your Powerball winnings:

Sign the winning Powerball ticket

You want to make sure you immediately sign the winning lottery ticket. Lottery tickets are “bearer” instruments. This means that whoever holds the ticket is the winner. I would also suggest you take a photo and video of yourself with the ticket. If something unforeseen happens, these steps go a long way to prove you are the owner of the ticket.

Take care of yourself

This step has nothing to do with your lottery prize and everything to do with you and your health. While everybody handles these things differently, it’s not uncommon to experience anxiety, paranoia, or even strange out-of-body feeling where things move in slow motion as if you were watching your life on a movie screen. For some, these feelings are fleeting, but for others, they can persist and make it hard to sleep, function, and make logical decisions. So, first and foremost is making sure you take care of yourself. Seek professional help if necessary.

Decide if you want a lump-sum or an annuity

The next step – and one that is usually glossed over — is to figure out just exactly how much you’ve won and whether you want a lump sum or an annuity. Although the stated prize is $590 million, it’s a bit misleading. With big lottery wins like yours, you have the option of taking a lump sum payout or to receive the payout over time. If you choose the lump sum option, the amount is $370,896,780.50. If you are a U.S. citizen, the IRS will automatically withhold 25% for taxes – providing you $278,172,585.40. Of course, you’ll be on the hook for more than 25% to the IRS. The real after-tax amount will be closer to $224,000,000.But instead of the lump sum amount, you have the choice of receiving 30 payments of $19,683,000 per year for 29 years. Although a great majority of lottery winners opt to receive a lump sum amount, there are definitely some advantages (and disadvantages) to taking the payout over time. You’ll want your CPA and financial advisor to “run the numbers” for both options and discuss the pros and cons of each. The big advantage of taking the money over time is that it provides you a “do-over” card. We’ve all heard the stories of lottery winners who have lost it all in a few short years. By getting the money over time, even if you are careless the first year, you get 29 more chances to get it right. It’s definitely something to think about sooner rather than later because you have 180 days from the drawing to claim the prize, but if you want the lump sum payout, you only have 60 days from the drawing. Also, the day you claim the prize, you will need to make your decision, so you’ll want to get your team assembled so they can crunch the numbers for you.

Assemble your team

With a lottery win as big as yours, you’ll want to make sure you have a stellar team that can help you make the best decisions. You’ll want an attorney – actually, you’ll undoubtedly use several types of attorneys (business, tax, trusts, and estate), but don’t worry about finding all of these on day one. Find a good attorney to guide you through the initial steps and who can introduce you to others as needed. You will also want a CPA and a financial advisor skilled in managing sudden wealth.

Make a publicity plan after winning the Powerball lottery

Unfortunately in Florida, you don’t have the option of remaining anonymous. As soon as you claim the prize, your little town of Zephyrhills, Florida and the rest of the world will know your name. Journalists and TV reporters will come from far and wide. They will dissect everything you’ve ever done and will want a piece of you. The best approach is to develop a public relations strategy to control the message as much as possible. Figure out what you want to share and what you don’t and decide if you will be your own spokesperson or if you want to have someone else speak on your behalf.

Don’t lose yourself to Powerball lottery winnings

Lottery winners will often complain that after winning their lives are turned upside down and that they are thrust into a new life. It’s hard to keep things exactly as they were when you get a check for over $200 million, but at the same time, you don’t want to lose the aspects of your life you now cherish. Step outside the craziness of the situation for a moment, and make a list of Who and What you love about your life that you don’t want to change. Money is best when you use it to improve your life, not necessarily change it.

Follow these six steps after winning the Powerball lottery to get control of an otherwise seemingly out of control situation. Regardless of what you are feeling now when the lights fade and the cameras go away, things will calm down and you will be able to enjoy your newfound wealth. While you’re here, please read about how we help Powerball lottery winners, sign up for a free email course, or read more related blog posts.

Before you claim the Powerball lottery prize, there are six critical things you must first consider.

Things That the Person Who Won the Lottery Must Do

by Marc Berman May 15, 2020, 7:07 am

Imagine that you are the lucky winner of the lottery (jackpot, for example). How will you handle that huge amount? What you will do? After the initial excitement, make sure you face a range of problems, even risks. Here are 9 things you shouldn’t do.

Hurry to receive money

After realizing that Wanczyk was the winner of the Powerball, Wanczyk immediately contacted the award and called the Mercy medical center where he worked to resign. However, financial advisers said that it is so too early. “It’s best not to do anything. Let the overwhelming feeling pass before making any decisions”, said financial planner John Lloyd in Fort Worth (Texas). Join now https://w88nhanh.com/ for the best tips available lottery prediction.

Matt Chancey, a Financial planners in Orlando (Florida), said that you should consider waiting a while and then accept the award, to the attention of the media to calm down. Also, please photocopy the ticket and store it in the safe. Normally, you have a certain amount of time (30 – 180 days) to receive the award so please use this time to be better prepared both financially and psychologically for this big event, John Ulin, a Financial planners in Boca Raton recommend.

Do not let others know

In fact, it is true to say that the jackpot lottery winner will attract a lot of attention, from the media, relatives and even scammers. If allowed, please remain anonymous when accepting the prize. “Do not tell anyone”, noted financial planner Leon LaBrecque in Troy (Michigan).

On the other hand, Amy Hubble, a financial planner in Oklahoma City, thinks that you should talk to a lawyer for assistance in opening a fund or find an appropriate fund manager to receive the award in private.

Thinking that winning the lottery will solve problems in your life

“Winning the lottery cannot change who you are”, warns Sandra Hayes, a former social worker who won the Powerball lottery in 2006. You are still friends with the same issues and have more money. Many people won the lottery and eventually encountered more problems than before. “I wish I had torn the ticket”, said Jack Whittaker, a 2002 Powerball winner, who said afterward.

Do not turn yourself into an amateur investor

There seems to be no way to spend such a large amount of money, but then you will meet people who offer investment, ask for charity and even those in difficult circumstances to ask for help, Burke Sestok, a financial planner in White Plains (New York), said. “Change your mobile phone number. If necessary, change your residence”, adds Timothy Neuville, a financial planner in Irvine (California).

Your relatives and friends will start looking for your friends. Even people you barely know. “If you really have to lend to people you know well, ask them to write a pledge” even though most of these loans will eventually be made, said Kenneth Waltzer, a financial planner in Los Angeles, to speak.

Do not rush to get cash right away

Instead of getting a whole bunch of money, the smarter option is to receive each part within 30 years. According to financial theory, you can take money to invest, but getting all the money at once will bring much trouble and danger.

“Learning how to handle such a large sum of money takes time”, said Joyce Streithorst, a planner in Melville (New York). “If you choose the gradual option, you will always have huge income in three decades, but also significantly reduce the risk of spending all your money at once”, Sestok added.

Do not handle yourself

Everything from taxes to real estate planning is complex and risky. “You will need a lawyer, accountant, and financial planner”, said Mark Beaver, a planner in Dublin, Ohio. Do not hire your friends or your comrades. Hire a reputable independent expert, with appropriate qualifications and experience.

Do not become a “fool” because there is no comprehensive financial plan

“A plan will help you not become one of the people who lost all of the lottery winnings”, Beaver said. Although the money is so much that you’ll never seem to spend it, make a budget to specify when and how you will spend it.

Do not try to become an investment genius

Think carefully before investing in anything complicated and now that you have a lot of money, you don’t need to be in such a hurry. Billionaire Warren Buffett also always advises people to invest in low-priced funds.

Sandra Hayes, who used to be a public service worker, always maintained a simple life even though she won a prize up to $224 million.

“I know a lot of people have won the lottery but they go bankrupt now”, Sandra said. “I don’t care how much money you have, but if you live up to the rules, you will go bankrupt”, she added.

Do not waste

Do not rush to buy a new house or a supercar. At first, just allow yourself to spend a moderate amount, then do not touch the pile of money or change your lifestyle in the first 6 months. “Let you get used to the new reality”, said Richard Gotterer, a planner in Miami.

Things that players have to win a lottery must do

In fact, lottery companies all set a deadline to claim prizes. Accordingly, within the specified time period, if the winner does not contact the lottery company, they will lose their eligibility for the prize.

Before receiving the lottery winnings, players will need to contact the bank about setting up a personal account as well as asking the bank for confidential information when receiving large amounts.

There is no denying that paying personal income tax when winning the lottery is an obligation and a responsibility of every lottery winner.

There are many cases when information about a special lottery prize is leaked out, the life of their family is turned upside down when so many people constantly come to bother. Among them are scammers with malicious intent. Therefore, the confidentiality of personal information is what many lottery winners apply to ensure safety for themselves and their families. Most lottery winners require lottery companies to announce their initials and wear masks when accepting prizes.

Above are the things that all jackpot lottery winners must do or should not do right after winning the lottery. Keep in mind and apply because most likely, you will be lucky to win the jackpot lottery in the future.

Things That the Person Who Won the Lottery Must Do by Marc Berman May 15, 2020, 7:07 am Imagine that you are the lucky winner of the lottery (jackpot, for example). How will you handle that ]]>