Planning for Powerball? What do you do if you win?
The odds of winning are nearly 1 in almost 175,000,000, but many of us may daydream today of what we could do with an extra $700 million from tonight’s jackpot! But, what do you do if you actually win? State Farm™ is here to help with a lotto tips from financial professionals – and some former winners – on having a plan:
Secure your ticket: Make several copies of both sides to show your new lawyer and accountant, then lock the actual ticket away in a bank safe deposit box or a secure personal safe. Take a deep breath and take your time: You have a set amount of time to turn in your ticket – make sure you know what that is – so don’t run off to the lottery office first thing Thursday. Work carefully forming your team and plans first. Protect your privacy: As tempting as it may be to post the news on social media, keep it as much to yourself as possible, especially before turning in your ticket. Put together a team: You’re going to need a lawyer, accountant, and financial advisor who have experience with large financial transactions–finding and interviewing them should be one of your first priorities. Make a general plan: Before you start forming specific financial plans with your advisors, step back and think big-picture about what you want from this money. Write down your personal, financial, lifestyle, family and charitable goals. Plan for beyond: Sadly, winning the lottery is unlikely to also make you immortal. Work with your team to plan your estate, including your will, so your family is taken care of if something happens to you. Bank it: Don’t show up at the cashier counter with a check for millions–talk to the bank’s upper management or private banking department ahead of time to discuss the best options for holding large amounts of money.