If you are one of the millions of lottery players, chances are high that you will not be able to ignore the coming Pennsylvania Lottery drawings this week. Over the next three nights, there will be drawings that total more than $350 million combined. This is instant king-making and instant empire-building money. 24/7 Wall St. wants to make sure that the winners do not fall victim to the most common, and frankly devastating, mistakes that most lottery winners make.
Tuesday night will bring the Mega Millions jackpot with an annuity value of $106 million and a cash prize of $71.8 million. This week’s Powerball jackpot on Wednesday night is worth an annuity value of $245 million and a cash prize of $136.3 million. Either fall under the instant wealth category.
Have you ever heard that most lottery winners go bankrupt, many within a few years of winning the lottery? This is unacceptable, and anyone that this happens to should be more than just embarrassed. We sincerely hope that this does not happen to any of our readers. That being said, we would hold little sympathy for anyone who fails to heed the obvious warning signs.
Most lucky winners do not realize that they will become an instant target for poachers, scammers and users. They will. Many winners become losers because they did not seek highly respectable firms to handle their financial planning and tax consequences, now that they are in the highest tax bracket in our land. Many of those who end up back in the poor house do so because they could not set realistic limits to their expectations.
24/7 Wall St. has created a 12-step program that will be a starting point for anyone who is lucky enough to win a lottery drawing of anywhere close to this size. It would pertain to anyone who wins a large judgment as well. Many websites have told winners what they should do but we went a step further by identifying 12 things not to do you if you win.