Financing Your First Business

Winning The Lottery: What Do You Do First?

16 June 2015

Jimmie Holland

If you manage to defeat the odds and win one of the lotteries, you are, of course, allowed to jump up and down and scream a few times. Once you have calmed down, take out a pen and sign the back of the ticket. Otherwise, if someone else gets his hands on your winner, he can claim your millions. Once that task is completed, you can lock the ticket in a safe and plan your next move.

Keep It Secret

This step may seem nearly impossible. You will want to shout it from the rooftops, but keep your win as private as possible. As soon as your good fortune becomes common knowledge, you will be besieged by relatives, friends, acquaintances, and total strangers, all who feel you can spare them a dime or two. In some states, your name will become public as soon as you claim your ticket, but in others, you have the option to remain anonymous. If you do not have that option, stay quiet until you actually claim your prize. 

Consult Experts

You will have at least 180 days to claim your jackpot, so you have plenty of time to line up the proper legal and accounting services. Many people tout their ability to manage large sums of money, but you will need someone you can trust. The Financial Planning Association, or FPA, can guide you to a certified financial planner. You will have many options to consider, the first being whether to take your payout in a lump sum or an annuity. Both have their advantages, and you will need to carefully consider which choice is for you.  

Wait to Buy

Suddenly having so much money can make even a steady person go a little crazy, and if you have not been good with money in the past, you may blow through a huge amount of cash in a short time. Horror stories abound concerning lottery winners who lost it all. Force yourself to get your financial planning finished before you buy a huge house or a fancy car. A cooling off period may keep you from ill-advised purchases like a private island or a personal Ferris wheel. 

Winning the lottery is a fantastic experience that can quickly go bad if you do not use accounting services to plan your investments, trusts, and purchases. Once your money is secure, you can kick back and enjoy life, secure in the knowledge that you and your family are taken care of for years to come. For financial advice from an accounting service, talk to a professional like James Gioia & Company PC.

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