Tuesday, October 8, 2013
Winning the lottery may sound like easy money, but taking charge of a windfall can be hard work. Here are six things you should know:
- Winning is a long shot. The odds of winning the Powerball jackpot are around one in 175 million.
- Your life will become more complicated. Some find themselves working a whole lot more while others watch their lives fall apart.
- You will be famous. Only five states allow winners to collect rewards anonymously. In all others, you will become a target for scammers and strangers.
- Assemble an A-team. Winners will at the very least now need an investment adviser, insurance expert, estate-planning lawyer, and CPA.
- Choose wisely. Some winners have a choice between a lump-sum payment or yearly disbursements. Each has its own pros and cons.
- Don’t act like Santa. Giving out handouts to whoever asks can wreak havoc on relationships and bank accounts. Consider setting up a trust instead to act as a buffer.
See Susannah Snider, 6 Things You Must Know About Winning the Lottery, Kiplinger, November 2013.