The Powerball jackpot has quietly risen to $151 million, and the drawing is set for Saturday, October 22, 2016. While this $151 million is an annuity value, the discounted cash value is still a whopping $100.5 million. Even after the winner backs out the taxes, this is instant empire-making money.
Winning the lottery has become the new American Dream. After all, you get instantly rich beyond your dreams, and certainly beyond whatever business idea you can probably succeed with. And what’s great about the lottery is that all you need is luck. Besides that, the media and the politicians keep telling the public that it’s just too hard to get ahead and live well these days.
Lucky lottery winners better have some serious plans in place if they win. Most importantly, those lucky few better know exactly what not to do.
Winning $151 million over a lifetime or winning $100.5 million almost certainly will provide multi-generational wealth. There’s just one catch: many lottery winners and many who become instantly wealthy go broke, and many do it in short order. The Powerball lottery winner is going to need to exercise extreme responsibility.
24/7 Wall St. has created the 12 Things Not to Do If You Win the Lottery. Most people choose to take the cash lump-sum option rather than the annuity payout. This will end up being more money than most people can imagine even thinking about how to handle.
There are endless pitfalls for lottery winners and those who suddenly become filthy rich. Temptations are endless, and it might seem like there are no limits. Many people blow off the classic warnings and their temptations get the best of them.
Lottery winners need to know that these days it is simple to blow through $50 million, $100 million or even $500 million. Without a serious plan, this vast sum can vanish.
Relationships and friendships likely will be tested by instant and vast wealth. Keep it as quiet as you can. Getting financial advice and tax advice are a must. So is living on a budget. If these points sound silly, you need to understand you are already on the path that could make you go broke.
Having an entourage may sound cool, but what do they cost? What about the private jets and yachts, or mega-mansions? Luxury sports cars and jewelry all add up too. And why not have a private island? These are all incredibly expensive and they all require more money ahead to support and protect.
Hopefully reality is setting in here. The entire point behind the 12 Things Not to Do If You Win the Lottery is to keep anyone who becomes suddenly wealthy from going broke. 24/7 Wall St. does not want to see anyone become incredibly wealthy and then go broke.
Remember this and do not dare forget it: You should only have to become rich once!
Here are the 12 things not to do if you win the lottery.
1. Do not forget to sign and report the ticket.
This may sound impossible, but some people might not sign a winning lottery ticket. Also impossible to understand is that a winner might not report that they are the winner to the state. Imagine if you have the winning ticket and it gets lost or stolen. Or imagine if your ticket burned in a house fire. Endless millions of lottery dollars have somehow gone unclaimed.
Imagine how you would feel if you lost a winning lottery ticket. Or what about if someone else steals your winning ticket and then shows up to collect the prize? Fighting over a winning lottery ticket is no simple task and disputes have arisen over who owns what ticket. Generally speaking, the state recognizes the winner as the one who reports it and shows up with that winning ticket.
In a way, lottery tickets have effectively become the last form of bearer bonds that anyone can collect on if they show up to collect on the coupons and bonds. You have to sign and secure that ticket, and you then have to report to the state.