Being a winner is really awesome when you find your lucky winning numbers being drawn out in lottery that changes your life completely. Winning few bucks is also worth but if you have won a million dollars or more then you really have made a blast. Powerball winners thus become wealthy instantly, remember there was a $310 million winner from the Powerball lottery in Michigan and in February of 2015, the Powerball drawing with a $564.1 million jackpot there were three different winners who got to split this top prize. New York’s 2016 lottery drawing brought a jackpot worth $136 million. There have been other U.S. lotteries in years past with jackpots north of $500 million.
So if you seem to dream of becoming a winner in future powerball lotto or mega million lottery then you need to know and understand few things and remind yourself to do them when you make the news headline of being a winner. Note that once you are a declared a winner you become a market target and some people find instant enemies, and some people become their own worst enemy. So here are the 10 things to remind you again if you have won the lottery or dream to win.
1. Always sign your winning lottery ticket
When you see that you have won the lottery then without fail sign your winning ticket and report it to the state. Never lose your winning ticket because if you did and your ticket was unsigned anyone can cash claim on it. Fighting over this is no simple task, and disputes have arisen over who owns what ticket. So lottery tickets are almost considered the last form of bearer bonds that anyone can collect on if they show up with the coupons and bonds. Lottery tickets expire at different times from state to state, but note that they generally expire in 90 days to one year.
2. Never tell everyone that you have won but try to go incognito
Many lottery winners what they do is in excitement and joy yell and dance and start telling everyone around that they have won the lottery. But doing this is putting you in danger. Everyone who has ever done anything for you now may come with their hands out asking for something, or worse. You might have heard of kidnap and ransom insurance before and how many lottery winners are even murdered for money. So better to remain anonymous and request the lottery state officials to keep your name incognito. Therefore no need to alert anyone that you have won.
3. Try to en-cash your winning price in annuity rather than decide to take the up-front cash
Many winners take the entire cash and after spending lavishly become a broke within few days. Getting tens of millions of dollars at once probably sounds better than getting a paycheck for the next 30 years or so but consider that close to 70% of lottery winners end up broke, many within a couple or few years. Let’s say that you can choose to get $172 million up front, or you can choose to receive a payout of $300 million slowly over the course of a lifetime. Most people choose the lump sum rather than the annuity payment as it is instant empire-making money.
If you are confused then take help from a reputable and visible tax professional and a reputable investment advisor at a top money management firm with a widely recognized company name and a long corporate history. Decide your way of encashment prior your visit and decision about a lump-sum or annuity option.
4. Hire a tax lawyer or go for tax consultant
If you are interested in investing and protecting your wins then have a solid and respectable team of advisors and managers in place to act as your buffer that will protect your assets now and in the future. Also, don’t think that this money is a tax-free payment as you probably will have to pay the top tax bracket to the IRS and the highest state and local income taxes. Also do not take heed of your drinking friends but hire a good expert or lawyer who will protect your assets against all threats and even protect it in case you die to handle it safely to your heirs.
5. Clear off your debts first and then enjoy to spend your winnings
One lottery winner in California was strapped with debt from property purchases and what seemed to be excessive insurance policies. Whether you take the lump-sum or the annuity option, if you have a single penny of debt in the immediate future and distant future, then something is seriously wrong. For that matter, you should not have a single debt ever again. If you manage to go broke down the road and still have a mortgage, car payments, student loans, credit card debt and personal bills, you will have lost the right to be mad when all of your friends and family members ridicule you every day for the rest of your life. So first clear off your debts and then enjoy to spend your wins.
6. Avoid to gamble again and stop spending money on unnecessary things
Many winners think that they have now become a rich man and behave to be like one. They spend the win money and gamble more even spending on the things they do not need. So in the greed to have more you will lose all that you have at present. So if you start gambling in Las Vegas and are not happy until you are gambling with hundreds of thousands of dollars or more per play, you are dooming yourself. Also taking you and your favorite 50 people on a luxury cruise around the world can become very expensive, very fast. So act wisely with the money you have won.
7. Do not start shopping on cars and houses
Many winners start shopping and spending their wins immediately after their wins. Many go out buying luxurious cars houses though they may never need it. So stop that spendthrift attitude.If you start buying everything for everyone, chances are high that they might expect that to last forever. The other end of the story is that you do not have to be a cheapskate either. Still, after hearing a real life personal story of one lucky winner buying more than 30 cars and multiple houses in three months, it is just crazy.
8. Form a budget and stick to it
As a winner it is hundred percent chance that you will make some serious purchases but to have money in control hands is more important. Therefore you need to set limits and that can be done by forming a budget for yourself. Seek a finance advisor who may help you with proper budgeting of your win money.
9. Do not fall trap on your family or friend’s advice
Most common happening in a winner’s life is that hearing the winnings family and friends even far relatives come and meet you and start pitching ideas as what to do with the money you have won. Do not fall on their trap of some crazy business and investment idea that may lead you to losses. Always protect yourself and your money from such advisors.
10. Do not give all in charity
It may sound mean to you but remember you have life ahead and God knows what may happen to you and your family in future. You may fall ill or have to undergo a surgery or you need to fight some case and so on and so forth. So give to charity but to a certain limit and save the rest for your future. Atleast save till you are alive! If you insist on giving it all away, structure your will and estate to give it all away upon your death.
So in the end of this 10 thing to remind you remember that you have to live like as you were living before and note that you also come under same laws of society. Many people when they become wealthier by winning the lottery bring in ego in their mind. They also think that they have become something special and now they do not need to live like anyone else on earth. But remember this is life where one day you are wealthy and one day you can be poor again. So be wise to act wise and keep your lucky wins in safe.