What to do if you win the lottery
If or when you’re going to win the lottery prize money, or if you’ve already wanted, your first action would be to probably tell your family members, close relatives, and your friends.
Well, we’re here to tell you that that’s not a good idea for a number of reasons. But don’t worry as Lottoland provides tips on how to invest a lottery win wisely. Check out below what happens when you win the lottery.
Lottoland provide tips on what to do if you win the lottery & how to invest a lottery win wisely
1. Hush Up About Your Winnings For Now
The first rule of winning the lottery jackpot when you do is to keep quiet for the moment. Of course, the rule of anonymity varies by state, with some of them requiring the winners to reveal their identity.
The reason why we’re strongly urging you not to go public about your huge winnings is that it’ll, first of all, attract an enormous amount of media attention towards you. Another thing, which is the most important piece of information you need to consider, is that waiting for about a week until you claim your prize gives you just enough time to plan out whatever comes next.
It’s okay for you to wait more than a week if you want as many lottery winners can wait between 6 to 12 months before they can claim their prizes. However, you need to confirm from the issuing authority that you have an ample amount of time left before you collect your prize money.
2. Sign Your Lottery Ticket
If you did indeed win the lottery prize money, then you need to sign the lottery ticket with the winning numbers as soon as possible. You’ll need to sign at the back of your ticket. And after you’ve done that, be sure to keep the ticket in an area that you only have access to and can retrieve it later with ease. You can use either a bank safe deposit box or even your own home safe. In the end, the objective is to collect your winning lottery ticket right when you need it.
3. Hire A Group Of Professionals
Another thing that you should keep in mind before cashing in your lottery ticket is to hire a group of qualified, experienced, and dependable tax professionals. A proper tax professional or wealth manager can present you with a number of problems associated with cashing in a lottery ticket, like taking out all of your money in a lump sum instead of doing a yearly regular annuity payment.
A tax consultant/accountant can help the lottery winners reduce a tax liability without playing dirty with the IRS. An estate planning or family law attorney specializes in making up estate planning documents such as trust, prenuptial agreements, and wills. You can even visit the website Trust & Will to deal with these documents.
A fee-only or fee-based financial advisor swears to act as a lottery winner’s fiduciary since they have experience in managing huge amounts of wealth for their clients. A public accountant, especially one that is certified, can assist wealthy families and have their finances organized and guide them through what could possibly be a complex annual tax preparation process.
These professionals can especially aid you in managing what can only be considered as God’s blessing from the sky and inform you about tax issues that go along with lottery winnings.
4. Pay Off Every Single One Of Your Debts
A common catastrophe that befalls on the shoulders of every typical American college graduate is the overwhelming amount of debts that they’ve accumulated over the years. This could be either in the form of credit card debt, a car loan, or a mortgage.
And the longer you wait and put off your debts over the years, the more interest will be added to your loans. And with the overwhelmingly haunting yields on secure investments such as CDs and Treasurys, this problem is a given. Paying off even $1 means that you no longer owe that amount to anyone ever again.
That’s why it’s pivotal that you pay off every single one of your debts especially now that you have more than enough to pay all of them off.
5. Go Into Hiding After Claiming Your Reward
As soon as you have claimed your prize money, some of your friends and relatives back at home won’t stop pestering you into giving them some handouts of your prize money. Don’t even start hearing from people that you never thought existed long lost friends, former college roommates, distant cousins, and even former colleagues from your past 4 to 5 jobs. If that wasn’t enough, you’ll even be pelted with a barrage of ethical mooring from investment lawyers and advisors.
Therefore, we suggest that you keep a low profile for the next couple of days, weeks, or perhaps even months. It might not completely dissolve all the annoying persistence of your friends and relatives, but it’ll give you enough space to breathe for the time being.
For starters, you should:
- Straightaway change all of the contact numbers to your immediate family and assign yourself some unlisted numbers. Your old phone number may still be visible, but it won’t be able to work anymore.
- Change or develop a new email address and deactivate (or better yet, delete) your social media profiles.
- It’s not possible to delist your address because of the number of websites with contact information that’s publicly available for every United States resident. However, switching your main address for all correspondence to a post office box will make it harder for your address to show up in a casual search.