Winning the lottery is among the top on a person’s wish list. Imagine winning more money than you could ever imagine owning at any one time in your life! There are however, many things you need to consider and deal with smartly if you do win a lottery. So what should you do after winning a lottery?
The most important thing to consider is whether you would like to take all the prize money at once or have it paid to you over a number of years. Keep in mind that when you take a lump sum payment, you have to pay taxes on the entire amount immediately. When you take the payment in installments, you pay taxes as you receive the money. Depending on your investment plans for the money, make this decision wisely. Many lottery winners have declared bankruptcy simply because they did not develop a plan to deal with large amounts of money. The amount of time you’ll have to claim your winnings vary from state to state, but be sure you know what the expiration date is to claim your winnings and begin planning to receive and manage your windfall.
Don’t make any drastic or sudden lifestyle changes like quitting your job right away. Set aside a decent amount to splurge on and wait a few months before spending on bigger purchases. Think through your purchase decisions wisely!
The best thing you can do when you win a lottery is to pay off all your debts. This will not only give you a sense of freedom, but you will know how much money you really have to spend.
Another very important thing you should do is to hire a lawyer, financial planner and accountant. Choose a lawyer, an accountant and a financial advisor who can work together and help you with your managing your money.
You may want to check the rules in the state where you won to see if it is allowed for you to remain anonymous. Once people know you have won a lottery, you will have a line-up of reporters wanting to interview you, your name will be splashed on newspapers, in the media and people will know who you are. These are additional things to consider before stepping forward to claim your BIG check.
Now that you have won a fortune, enjoy your new found wealth and spend and invest it wisely.