Most of us will never win even five dollars from the lottery, let alone a huge jackpot. But what if it does happen to you? What do you do next?
The most important thing to remember is to protect yourself. Don’t tell anyone about your windfall. You might be surprised how many family members and friends will turn on you out of greed, filing frivolous lawsuits or trying to manipulate you for money in some way. If you have children, it can also put them in danger of potential kidnappers who seek ransom money. It can put you at risk of future burglary or theft as well. It is also better for your personal relationships, from a psychological perspective, if you never have to wonder if people really like you or are only hanging out with you for your money. For these reasons, don’t tell anyone you have won, and set up a blind trust with a lawyer in order to collect your winnings anonymously. Your lawyer will be required by law to protect your identity.
Protect your ticket until it is time to claim your money. Make several copies, and keep the original ticket in a bank deposit box or at the very least, in a fireproof safe at home. The last thing you want to do is lose your ticket or accidentally destroy it! Resist the urge to check the ticket every few minutes as well – that only increases the risk that something bad will happen to it. Be sure to note the due date for claiming your money. Most people are going to rush off to claim it right away, naturally, but that is really not the best idea. Wait until the media hoopla over a big winner has died down, and in the meantime you can be taking these other steps to protect your money and your identity. Whether you claim it immediately or wait a few weeks, just make sure you don’t miss the deadline!
Hire a financial planner to help you make smart decisions with your money. Remember, a large portion is going to go to taxes, and you may not have as much to live on as you thought. Don’t quit your job or make numerous major purchases without an expert’s advice, or you could find yourself living with some regrets. Most likely you should take the lump sum payment, because paying off debts with high interest makes more sense than accruing lower interest and living off the lottery’s annual payment. If you do decide to quit your job, make sure to have a good story prepared in order to keep your secret. You can tell people you are working from home now, or doing freelance work. Do your best not to appear as if you’ve received a sudden windfall.