After Wednesday night’s draw where nobody won the 550 million dollar jackpot, there’s a betting frenzy as the Powerball lottery reaches an estimated $625 million. A long time tradition stands that jackpot fever is currently running through the lottery fraternity, with hopeful winners buying Powerball lotto tickets in two and three-digit stacks and syndicates have awoken all their betting pools. As the saying goes, you never know, and despite mathematical cynics ever tripling the odds of winning, there’s always a winner being announced, and it could be you.
Still, with all your expectations of receiving the seeming gazillions of dollars from a Powerball jackpot win, there needs to be some preparation so that windfall doesn’t become your downfall. To be in it to win it, though, you must take the first initiative and buy Powerball tickets online at Lottoland, just in case.
Preparing to meet the opportunity of a Powerball jackpot payout
When lottery players are asked how they would spend the money if they won the Powerball jackpot, most say they’ll do anything since they’ll be filthy rich. While the official advice from the lottery guys remains that winners should keep the excitement contained and seek privacy, it’s difficult not to be at least elated, throw a couple of parties, or head off for some sun and sand with a significant other. Such an insane amount of money will mean that your life will have a makeover, and changing your phone number or putting extra locks on your door may hold back the suddenly appearing thrice removed and ninth cousin.
Lack of preparation may mean preparing to fail, and since a fool and their money are soon parted, take time after claiming your jackpot to make some adjustments for a better win experience.
Paying the tax and avoiding federal withholding lawsuits later
Before accepting the big cardboard check with your name on it, be aware that the payment method can significantly influence the amount you’ll be left with after all the taxes and levies are paid to the government. If, for instance, you stretch out your receiving into 30 consecutive payments, you may end up with nearly the total advertised value of the Powerball jackpot. On the other hand, receiving the total amount as a lump sum will invite taxes that skim off at least 25% from your total windfall, and around 39.6% as welcome to the national higher tax bracket.
Since gambling winnings are taxed as income, the revenue authorities are going to be keeping a close eye on your Powerball jackpot money, and before blowing the millions, the state taxes are better off paid than owed.
Sorting out those closest to you and thinking retirement
It’s also better to deal with all the set-up of trusts for beneficiaries, life insurance policies, and retirement accounts at the onset, while estate planning should be included in your to-do list. Try to remain unobtrusive in all these arrangements and hire some professional financial managers or lawyers to walk you through securing your money.
Before you notify people outside your family that you’ve won, paperwork must be put in order, and all the fees paid since this gives you an awareness of how much each service costs, which can amount to six figures.
Watch out for the ruinous missteps of past winners
There are some very entertainingly unbelievable stories of how rags to riches soon became vice versa to some head in the clouds lottery jackpot winners, and it pays to note the mistakes they made. The financial blunders that took them down included; overspending, gambling, lawsuits, tax evasion, excessive debt, drugs, or family loans, which resulted in bankruptcy. Reason prevails when seeking to have fun with family or friends, but it’s important not to go all out on large purchases, at least not yet.
Powerball jackpot millions will require successful money management, where the rules never change and include;
- Living below your means
- Establishing an emergency fund
- No high-interest debt
- Invest in low-cost options for the future
- Plan for big purchases
- Have a high yield savings account
- Craft a long term plan with the help of a financial professional
Plan ahead and resist the temptation to spend all the money
Research shows that winners of unexpected windfalls spend the loot as quickly as they receive it, and bankruptcy rates are soaring for previous lottery jackpot recipients. Statistics show that these people face utter ruination three to five years after winning the money where they have nothing to show for it except a good time. Spending money on assets such as real estate, exotic cars, or art is merely transferring wealth from one form to another, and this can become an investment when housing, auto, or cultural pieces gain value in the future.