What You Should and Should Not Do When You Win the Lottery
What to do when you win the lottery? Buy an island, duhhh!
No, you should not buy an island, guy who still says “duh.” You need to think about this carefully, because if you’re anything like almost all the other lotto winners, your life can drastically change from worse to better to worse to way, way, way worse in a matter of months.
Buy an island — We already covered that one, but it should probably be mentioned again. But, dude! Islands are sweet! Yes, they sure are. But even after your lotto winnings you still probably can’t afford one. Also, there might be one or two purchases you can make that are a little more responsible.
Buy multiple (anything) vehicles — We all know you’ve always wanted those nine Lamborghinis to drive around your island, but do you really need that many vehicles?
Gamble all your winnings away — Believe it or not, it’s happened… more than once. People must think that winning the lottery isn’t enough and they want to test their luck a little more. They gamble and gamble some more, but aren’t very good at it, so they lose everything. Don’t do that.
Give all your money to that questionable new friend you just made — Exactly like this guy did! He decided to give all his money to a stranger named Dee Dee who insisted that he should trust her with his winnings because there are bad people out there. Then she killed him.
Here are a few things that you should do:
Hire a financial planner — Someone who will make sure you are making responsible decisions with your winnings.
Sell your lotto win for a lump sum — You could receive lottery annuity payments like the 30 annual Powerball payments or the 30 Mega Million payments, but then you’ll want to buy an island every year. Why not sell your payments for one large lump sum and buy 30 islands! Yeah! Just kidding. No islands. Getting a lump sum for your annuity payments is wise, however. You’ll be able to pay off any credit card debt, student loans, or make responsible investments for your future. Whoa, like a future space island? Ugh.
Prepare to pay money to the IRS — As soon as you win, the lottery withholds 25% of your winnings for federal taxes and then potentially another six to nine percent for state tax.
Maybe now when you’re pondering what to do when you win the lottery. Plan for your future; don’t just blow it all in a few months.