Everyone is excited about 1.3 Billion dollars! It’s amazing that now one won last week, but just in case you are the lucky recipient this week, here are a few tips:
Don’t cash it in until you see your attorney.
You need to protect your assets, and set up the proper trust, before you cash it in. That way it’s fully protected from the start.
You have to pay your taxes.
Lottery taxes are due within 75 days, so if the Powerball doesn’t take it out for you, then make sure your CPA calculates the total so you can send your payment in online. Irs.gov has very easy payment system, much like online banking.
You need to make sure you are careful where you put it.
Banks are only insured up to $250,000 and securities are only covered for $500,000. Obviously you need to talk to a professional so that you don’t potentially lose everything by putting it all in one source.
Please know that as much as 50% of big winners are broke and WITH DEBT within 3-5 years.
This is because there is an emotional self sabotage mechanism that kicks in for many people that don’t know how to handle so much money. A lot of people were raised in a way to believe that money can be evil, or change you. These self defeating belief systems can cause many lottery winners to completely blow through their money or overextend with a slew of meaningless “toys’. Toys are great, just be aware of the maintenance expenses, and do you really need more than one Ferrari?
I hope you will give freely to charity, because there are so many people globally that don’t even have clean water, let alone enough food.
Be balanced in your saving, spending and giving, no matter what you income level is.
Good Luck everyone!
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