5 Steps to Take When You Win the Lottery

By Ben Hamill - August 15 2018

5 Steps to take when you win the lottery

If you love playing the lottery, you’ve likely given some thought to what you might do with your new windfall should you get lucky enough to win. However, if you ever become one of the lucky few to do so, the future may not all be a bed of roses, as many believe.

In fact, winners need to be very smart about their actions after they’ve struck gold to ensure that their jackpot serves them in the best way possible. Some windfall winners lose friends, get scammed, or fritter their fortunes away – but with the right knowledge, you can avoid this and use your good luck to your advantage!

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Tip #1: Don’t Rush Into Any Quick Decisions

Now that you’ve won, there’s no need to make hasty decisions. The jackpot will still be in your bank account tomorrow, as long as you spend it carefully and deliberately. Take some time to collect your thoughts and recover from the heady shock of the huge win, as this could prevent you from making a spontaneous purchase and regretting it later…

Take your time and think about your decision

Tip #2: Enlist Some Financial Help

Enlist a financial advisor

A financial adviser could be invaluable when it comes to making solid decisions about your prize. Depending on the size of the windfall you’ve won, you may wish to consider hiring a professional financial planner, a tax specialist, and an estate-planning attorney. These experts can help you to see your situation from all angles, and could also protect you from the crowds of scammers that will make attempts to separate you from your fortune.

Tip #3: Plan Carefully

Some lotteries pay you a single lump sum when you win, while others pay over a specified period of time known as a finite window. Take some time to consider whether you wish to be paid out in monthly sums, or whether you want the full jackpot in your bank account upfront. From a tax perspective, a monthly payout could be a solid choice, and would also prevent you from blowing too much on frivolous purchases.

Tip #4: Maintain Your Privacy

Many lottery winners have been harassed endlessly by businesses, charities, and even their own family members after their wins. Some regions require full public disclosure of your win, and certain lottery operators even stipulate that you must allow them to use your name and picture in order to collect your windfall. Regardless, always take the road of caution and stay anonymous where possible if you want to hold onto your money.

Remain anonymous

Tip #5: Make an Investment

Whether you’ve opted for a lump sum payment or monthly installments, investing a portion of your lotto winnings is important. Investments are a clever move that could see you enjoying your winnings for life, rather than just for a few months or years. Consider beginning a retirement fund or an investment account with a portion of your prize that you feel comfortable with – it will pay off big later down the line!