It is not an easy thing to win the lottery. But if lady luck has decided to smile, grin, on you, then, you may want to have a plan on what to do with what you win. Managing money does not come easy to many of us. And managing a lot of money is never easy.
What are some of the wise things that you should do if you win the lottery? Once you win the lottery, you will learn that winning the lottery was the easiest thing. What you do after you win the lottery can change your life forever.
Things to do When You Win the Lottery
The first thing to do after you win the lottery is to let it sink in. Always remember that the decisions you make now will make or mar your prospects. So do not be hasty. You might want to check out the few pointers given below to help you decide what to do if you win the lottery.
- Ticket Protection
The first thing you should do after you win the lottery is to protect your ticket from possible theft or misuse. Sign your ticket the instant you are sure your ticket is the winner. Next, make copies of the ticket. Paper copies and digital copies both and save them. You might also want to keep it in a bank safe deposit box.
- Do not be in a Hurry to Claim Your Prize
Do not rush to claim your prize the minute you win the lottery as it attracts attention. It also gives you enough time to figure out what to do with the money if you claim the prize after a week or ten days.
- Remain Anonymous if Rules Permit
It is best to go low profile when you win the lottery. In some states, the lottery draws are public knowledge, and in some others, you can set up a trust or limited liability company to receive your prize. Depending on where you bought the ticket, you have between 180 days and a year to claim your prize.
- Get Professional Help
It is best to make your decisions based on the best possible advice that you can get. Hire a team of good professionals who can help you make the right decisions.
- Do Not Make Abrupt Lifestyle Changes
At least for a good six months after you win the lottery, do not make any sudden changes in your lifestyle. Most importantly, do not quit your job. It is also wise to save your big ones like buying a mansion or a luxury vehicle to the last.
- Decide on the Pay Out
Decide on whether you want to be paid out in a lump sum or as an annuity. This requires careful consideration as there’s a considerable amount of money involved, and the tax payment differs due to inflation. There are also other things to consider like what will happen in the event of your death if you decide an annuity payout.
- Pay Your Debts
The first thing to do after you win the lottery is to pay off your debts. All your debts whether it is credit card debt, mortgage, or loan, clear it all off.
- Protect Your Assets
There are a variety of asset protection strategies that you might want to make use of with the help of professionals so that your assets are as secure as they can be.
These are the few essential things that need to be taken care of when you win the lottery. Other essential things can be:
- Set up an Emergency Fund
- Save Money For Retirement
- Diversify Investments
- Live Within a Budget
- Donate to Charity
- Set up College Funds