What To Do When You Win The Lottery

Picture this, the three dollar powerball ticket you got at the Exxon on your way home wins the billion dollar jackpot. The first thing to come to your head is no doubt the yacht and G6 you always wanted, but making excessive purchase immediately is the worst thing you could do. As a lottery winner, you are now much more likely to end up declaring bankruptcy than the average American.  

Here’s some advice on the very off chance that you find yourself a lottery winner. The most important thing is to refrain from doing anything drastic. Calm down. Do not quit your job, do not buy a mansion, and most importantly do not tell anyone who you don’t entirely trust. Contact a lawyer, accountant, and financial advisor as soon as you can.

With your new assistance, start investing and planning for the future. Immediately pay off all high interest loans and other debts, and put a significant amount of money into savings account for retirement. Look into investing another large chunk into index or mutual funds, or even directly into stocks if you're looking for a more risky investments. Finally, set up an estate or trust fund to provide for your family in case something happens.

After the initial shock and awe of winning the lottery has passed over, and your finances have been secured, you can start to look at bigger purchases. Make sure you consult your newly acquired financial team first, but even after all of the investing there should be plenty left to buy your dream house, or whatever else it is you've always wanted.

By Jake Bogartz