Here’s What to Do If You Win the Mega Millions Lottery on Friday
The Mega Millions lottery jackpot is expected to top one billion dollars this Friday. And while it ‘s well-documented that winning the lottery won’t translate into eternal happiness for a lifetime , it’s impossible not to dream about what you’ll do with that unexpected life-changing fortune. But before you get carried away thinking about the jet skis you’ll buy and the co-workers you’re chastising, consider how best to set yourself up for a carefree life of financial freedom. But how?
To find out, I spoke with Pacifica Wealth Management ‘s president and chief financial advisor and author of The Sudden Wealth Solution , Dr. Robert Pagliarini, who has 24 years of experience advising lottery winners, to figure out what to do the moment they hit the jackpot. .
Keep Calm and Take Care of Your Lottery Ticket
The first piece of advice Pagliarini gave to a potential lottery winner is simple: just breathe. “You need to make several decisions that will change your life, and for this you will need all your mental abilities,” he says. “You don’t want anxiety, excitement, nervousness or fear to cloud your common sense. Tell yourself that later you may go crazy with excitement, but now you have a job.
Once you have realized your almost unbelievable luck, the next most important step is to secure your winning ticket. After all, you didn’t win the lottery, but the ticket you bought.
“A lottery ticket is a ‘bearer instrument’, which means whoever has it owns it,” says Pagliarini. “This means that you must document that YOU are the legal owner of the ticket. How? Take a photo of yourself and your ticket. Take a video. Keep him safe!” It is also often suggested that you add your signature on the back of your ticket to further demonstrate your ownership.
Understand what your winnings will look like
According to Pagliarini, one of the most common pitfalls lottery winners face is thinking they are getting more money than they actually are. “If you win the $100 million jackpot, you (and your family and friends) might think you have $100 million. You do not know. If you take the lump sum, you will get about 60% of the jackpot. Thus, you will go down to 60 million dollars. But then you have federal and (often) state income taxes. It cuts your victory in half.”
In addition, he warns lottery winners against the right mindset when winning the lottery. Because lottery winners didn’t make money, he saw that they tended to spend it more freely. “It’s like Monopoly money,” he says. “You are likely to spend it more freely, give it away more freely, and invest it in much riskier investments.”
Keep quiet about your victory – and the lawyer is upstairs
One of the pieces of advice Pagliarini gives to lottery winners during the first twenty-four hours after winning is to keep the stun-inducing news a secret. “Tell just one family member,” he says. “Keep it a secret from everyone else for now.” After all, the sooner people know about your winnings, the sooner you will receive letters from those who are hoping to get their piece of the pie. And, as discussed earlier, their idea of how much money you actually made is likely to be inflated.
After probably one of the most hilarious and disembodied conversations of your life with your chosen loved one, Pagliarini suggests finding a lawyer. “Get a lawyer,” he says. “You want someone on your team to help you and take care of your best interests.” A lawyer can help you claim your winnings (and advise if your state will allow you to do so anonymously) and lay the groundwork for protecting your newfound reward.