There was still a chance – 1 in approximately 303 million – for the lucky winner to win the Mega Millions jackpot, which jumped to an estimated $1.55 billion after no ticket matched all 6 numbers following Friday’s drawing. If she hits the jackpot, it could be the largest in the history of the game, potentially beating the 2018 jackpot of $1.537 billion won in South Carolina. “At this level, it is difficult to predict the rewards with complete accuracy,” A.J Mega Millions press release said.
While getting the golden ticket is just a matter of luck, holding on to your newly acquired wealth after such a windfall takes some strategy. In fact, compared to the average American, so are lottery winners More likely to declare bankruptcy within three to five yearsdue to a lack of financial planning.
Yahoo News spoke to Andrew Lockenauth, personal finance expert and founder thefinancenewsletter.com, for some tips on what to do, and what not to do, if you’re a jackpot winner. Some answers have been slightly edited for length and clarity.
Someone just won a jackpot in the lottery, what should they refrain from doing?
Andrew Looknoth: First: don’t sign the ticket, because as soon as people know who claimed it, everyone else will rush after you. I would say put it in a safe place, and depending on which state you live in, you can claim it anonymously (Delaware, Kansas, North Dakota, Ohio, South Carolina or Maryland).
Second: don’t tell anyone. This goes back to the first point because you could become a victim of theft, or people could try to blackmail you.
Enjoy privacy until things are under control. You may want to delete your social media or make it private until you figure things out. Legally change your address to a PO Box. And get a new phone number and email address, as they may be easy to find online.
What are the procedures He should Take lottery winners?
Make digital copies (on encrypted storage) or print copies of your ticket. If you lose it or someone steals it…these are time stamped items to prove you actually own the ticket.
You’ll want to look into hiring six different professionals. The first is an attorney who will help you build a legal entity (and create) a trust that will protect your money.
Who else should you hire?
Personal security. You want someone to take care of and monitor your bank accounts, investments and also professional security to protect your safety.
An accountant to give you a recap every month or every week of your money, where it goes, your spending, what your investments look like, because you’ll want to grow your money.
A financial advisor to help you build and build your wealth so that you can pass it on to future generations. Or, if you want to give back, you can set up a charity.
A tax attorney to help you save on your tax bill. I think the tax code is over 75,000 pages long. Many wealthy people use the tax law to their advantage and pay very little tax.
An estate planning attorney to help you pass your wealth on to future generations.
Is it better to cash out your earnings all at once or receive annual payments?
Because of inflation and decreasing dollar cost over time, it’s always a good idea to take a lump sum and then you can work with your financial advisor or hedge fund to manage that money strategically.
