The Do’s and Don’ts If You Win the Lottery
We all know that the odds of winning the lottery are very small. However, this isn’t the only problem you should be worried about if you win the lottery.
Understandably, these are the kind of problems most people pray for, but it’s important to know that life after winning the lottery isn’t as simple as you might think. If the experiences of past lottery winners have taught us anything, the outcome of winning the lottery isn’t always so rosy.
Money is never the end of life’s problems. With more money comes an even bigger set of problems to deal with. The following are some tips on what you should do and what you shouldn’t if you win the lottery.
The do’s if you win the lottery
Ensure you sign your winning ticket immediately
After you’ve won the lottery, you need to understand the piece of paper you’re holding has become worth lots of money. This is because whoever signs the ticket and presents their photo ID gets to claim the prize money.
This means that, if for some reason, your unsigned ticket falls into the wrong hands, that person can sign it, present their photo ID and claim the money. So it’s important to guard that winning ticket until the last minute.
Ensure you claim the prize money on time
After winning the lottery, it’s important to know that time is of great essence. Depending on the lottery rules governing your region, you might have a limited amount of time to claim the winnings.
For this reason, ensure that you research and understand the rules regarding the deadlines. The deadline is important because it helps you get everything you need in order and also prevents you from potentially missing out on the prize money.
Protect your assets
After you’ve on the lottery, it’s only a matter of time before word spreads and everyone becomes aware of your newfound financial success. This will bring about new financial risks that you didn’t anticipate.
You could end up losing your assets to creditors and people with ill motives. This includes any angry ex-spouses to acquaintances who are looking to win made-up lawsuits against you.
Instead of sitting around and end up losing millions in litigation, it’s important to get the necessary protection for your assets. Some of the common asset protection strategies include trusts, limited liability companies, and limited partnerships of even getting proper insurance coverage.
Put together a team of legal and financial advisors
In these circumstances, it might very hard to know those on your side and those trying to use you. Instead of signing a team of financial advisors that another person has put together, it’s important to handpick the people you trust.
It can be your lawyer, investment advisor, and your accountant. With them working together, you’re in a better position to navigate through any financial or legal challenge that might come your way during this period.
Your financial advisors will guide you through paying your taxes for the winnings and how you can manage your money thereafter.
Live within a budget
Many people think that winning the lottery means that you’ll never have to worry about money again, which is flawed logic. There is enough evidence everywhere that it is very easy to spend large sums of money and go broke.
Many cases of athletes, celebrities, and other lottery winners are there for you to learn from. Ensure that you don’t make any drastic changes to your lifestyle that might require lots of money to maintain. Ensure that your life is sustainable right now and in the future.
The don’ts if you win the lottery
Don’t tell anybody about the win
If you’ve ever wanted to know how being ‘rich and famous’ would feel like, this is not the time. Whether you’ve won the lottery online or in any other avenue, you want to remain anonymous for as long as possible.
Different regions have different rules about the issue of remaining anonymous. If the region you live in allows the winner to remain anonymous, do so until you receive your winnings.
Don’t forget the taxes
During this period, when you feel like you’re on top of the world, take a moment to pay taxes on your winnings.
You should know that every lottery winner is expected to pay taxes on their winnings, and you’re no exception either. The taxes you’ll end up paying might be way above what you anticipated, so brace yourself for it.
Don’t carry any debt
After winning the lottery, it is the ideal time for you to clear all your debts. After receiving their winnings, most people feel like their future is almost secure and forget about minor things.
There is no guarantee of what the future holds, so after getting your winnings, pay off your medical bills, mortgages, car payments, personal debts, student loans, and any other debts as soon as possible.
Winning the lottery is something that doesn’t happen for everybody. However, if against all odds you ever win it, ensure you use these tips to guide you on what to do and what not to do.