There are Powerball winner stories about jackpot winners who spend all their money to end up destitute. Don’t just get rich when you win, stay rich with these tip
You've seen the headlines before. "John Doe filed for bankruptcy just a short time after winning the Powerball jackpot." It does happen, and it can happen to you, too.
Or not.
While you might still be dreaming of winning it big, it's also helpful to think beyond the initial joy and excitement. Imagine that you've become a multi-millionaire. Then, imagine what you'll need to do to stay rich with your newfound wealth.
Take a moment to celebrate, whatever that means to you, and then begin forming a plan in a meaningful way that takes care of your winnings.
Bookmark this page and keep reading for tips on how the real winners keep on winning.
Try not to broadcast your Powerball jackpot win
A proven strategy for adjusting to your new life as a Powerball winner is to keep your win anonymous. Avoid unsolicited attention from scams and would-be hand-out seekers. Something to consider even before you purchase your Powerball ticket is to purchase that winning ticket in a state with increased protections. Kansas, Delaware, and Missouri already have laws in place to protect your identity as a winner.
Living close to one of these states or buying your ticket while traveling sets you up to keep your identity hidden. Anonymity doesn’t cost a thing, and it may just make the difference with family members and friends who may, even unwittingly, get too needy.
Talk with a financial advisor or wealth manager before spending
Make your winnings last by getting professional advice upfront. Wealth managers, financial advisors, and accountants are all excellent sources of professional counsel. They can guide you through investment decisions like:
- Buying real estate or investment properties
- Establishing lucrative retirement accounts
- Investing in stocks and bonds for the long-game
Don’t freely gift cash or goods without consulting a tax professional
Winning a Powerball jackpot is definitely a dream come true, but it’s a dream that comes with new responsibilities. Of course, you want to help family and friends and give generously to charitable organizations. Who wouldn’t? Proceed with caution here and talk to a tax professional first so that you can budget accordingly.
Consider, upfront, the tax burden on your winnings. Winners pay state and federal taxes on their gifts, and it might be more than you're prepared for as a first-time jackpot winner. As of 2023, according to financial consultants, federal tax liability may be as high as 37%.
It might help to work with a therapist to help you adjust
Will you quit your job as a new Powerball jackpot winner? Some winners do, and some don’t. Will you change your lifestyle dramatically or buy a second home or a fancier car, travel more, or even make new friends? All these choices and more come to mind when considering the Powerball winner’s new reality.
Just like any other reality, winning the Powerball can take its toll on your senses and emotional health. Some winners find it helpful to hire a counselor to talk them through the life-changing decisions that lie ahead.
Should you be a Powerball jackpot winner, focus on staying wealthy
You may never buy another Powerball ticket after winning the Powerball, but you will want to stay in the game. The wealth game, that is.
Apply what you’ve learned here about strategies for maintaining sudden wealth. Remain anonymous, consult financial advisors, devise a plan for short and long-term investments, and choose wisely when giving to charities, families, and friends. Receive counseling if needed in order to gain perspective on your new life.
Your new normal is going to be fabulous, and you’ll want to keep it that way. You were a winner before the Powerball, and you will remain a winner long after your Powerball win by making sound decisions.