What to do if you win a $1.2 billion Powerball jackpot, according to experts
The Powerball jackpot has reached approximately $1.2 billion for only the second time in Powerball’s 30-year history.
The current jackpot, which would become the second-biggest jackpot in Powerball history and the fifth-biggest jackpot in US lottery history if a player wins Wednesday’s draw, means the winner would walk away with 596.3 million dollars in cash.
The Powerball prize increase comes after no tickets matched the six numbers drawn on Monday night, with the next draw taking place on Wednesday November 2. The draw will mark the 39th jackpot draw, as there have been no grand prize winners since August 3.
As for the odds of winning the $1 billion prize, they are unlikely, considering the odds of matching five white balls, in any order, plus the red Powerball number to win the jackpot, are one in 292.2 million.
However, there are also other ways to win, with Powerball explaining that there are actually nine ways to win prizes and the overall odds of winning a prize are one in 24.87.
While the odds of winning the Powerball jackpot are exceptionally rare, it is possible, as proven by the three winners of the $1.58 billion Powerball jackpot in 2016. As for what to do if you end up with a matching ticket at the Powerball jackpot, or even one for a $1 million prize, experts agree that there are a few things every lottery winner should consider before making any decisions.
Make copies of your ticket and do not sign it
If you manage to beat the odds and end up with the winning Powerball jackpot ticket, the first thing to do, according to experts, is to make several copies and take pictures of the ticket.
“I would take a selfie with it,” Robert Pagliarini of Pacifica Wealth Advisors previously said. Today. “I would take a video of the ticket and smile.”
As for whether you need to sign the back of your ticket, many experts agree that you should wait, as it can interfere with your ability to remain anonymous.
“If a client comes to me and they have an unsigned ticket on the back, I can really paint whatever picture they want and keep them anonymous throughout the process,” attorney Kurt Panouses said. Fox13. “So that’s really what my recommendation is, is don’t sign the back of the ticket, just make a good copy of the back of the ticket, put it somewhere safe.”
The same advice is also given by the State Farm Insurance Company, which notes that you should not sign your ticket because “in some cases, signing your ticket may prevent you from creating a blind trust later.”
Try not to share the news
While a life-changing lottery win easily becomes one of the most exciting things in life, experts also advise against sharing the news publicly.
“Other than a spouse or life partner, I wouldn’t tell anyone about your good fortune until I created a solid plan with the professionals,” Laura Adams, author of Money Girl’s Clever Moves to Get RichTold Today. “Well-meaning friends and family may not offer you the best financial advice.”
State Farm also advises against sharing the information with anyone. “Some lotteries will ask you to make your name public, give interviews or show up at a press conference. If so, be sure to change your phone number and set up a new PO box beforehand to avoid being inundated with requests,” the company advises. “You can also consider forming a blind trust through your attorney to receive the money anonymously, keeping your name out of the spotlight .”
Consult a financial advisor, lawyer and accountant
After making several copies and placing a winning ticket in a safe place, perhaps the most important thing for lottery winners to do is to form a team of trusted advisors, consisting of financial advisers, lawyers and of accountants.
“You are going to need a lawyer, accountant and financial adviser who have experience with big financial windfalls – finding them should be one of your first steps before claiming your money,” says State Farm.
According to experts, winners should seek help from financial experts regarding their choices regarding their prize, as Powerball notes that jackpot winnings can be paid out either as a reduced lump sum payment or as an annuity on 29 years or 30 payments.
“Long-term investments require financial wisdom and restraint, but with careful planning, you may be able to increase your lump sum earnings more than future annuity payments would have been. However, if you need structural help to avoid spending too quickly, an annual payment is a solid and responsible way to ensure that you will continue to have an income for most of your adult life,” notes State Farm.
Financial advisers can also advise on taxes and help winners plan their overall goals for their newfound wealth, while lawyers can advise winners on their rights when it comes to remaining anonymous.
Set a budget and avoid giving money to loved ones
While it may seem appealing to start spending millions of dollars on vacations or luxury homes, the best thing lottery winners can do is create a budget.
“Realize this is not a bottomless money pit. Don’t spend too much thinking it will last forever,” Edelman said. Today. “A financial adviser can tell you how much income you can receive monthly from your earnings – you have to live on that amount or less.”
However, that doesn’t mean you can’t splurge, like Erica Sandberg, personal finance expert and author of Waiting for Money: The Essential Financial Plan for New and Growing Familiestold the outlet that it was all about “balance.”
“Set a budget, but also allow yourself dream purchases. It’s a balance,” she said.
The reminder is particularly important given that “lottery winners are more likely to file for bankruptcy within three to five years than the average American,” according to CNBC.
In addition to a budget, lottery winners should also avoid lending money to loved ones or anyone who comes looking for it, as William R Patterson, President and CEO of Baron said. SolutionGroup. Today it is “one of the fastest ways to lose your money”.
“Don’t feel pressured to bail out, reward, loan or give lump sums of money to friends and family,” he said. “Discuss with your financial advisors strategies and vehicles, such as trusts, that can help you help others and also preserve your wealth. In addition, cash and other gifts can have significant tax consequences.
Wednesday’s Powerball numbers will be drawn at 10:59 p.m. ET and will also be streamed live online at Powerball.com. If there is no winner in tonight’s draw, the jackpot will continue to grow, with the next draw taking place on Saturday.
Powerball drawings are broadcast live every Monday, Wednesday and Saturday at 10:59 p.m. ET from the Florida Lottery drawing studio in Tallahassee, according to Powerball.