What to do if you win $1 Billion in the lottery!

Here's what to do if you win the $1 Billion jackpot in the Lottery

Big paydays have spelled disaster for some. Not only do most winners have to deal with people coming out of the woodwork looking for a handout, but there have also been cases of bankruptcy, murder, robbery, drug abuse and various legal woes in the wake of big wins.

So, here’s a list of seven tips on how to handle a mega windfall from people who know what they’re talking about.

1. Establish proof that it’s your ticket.

While signing the back of the ticket is one step a winner will want to take, One wealth advisor suggests that it would be smart to take another step in case you ever need to prove it's yours - Take a selfie with it,

2. Keep it on the down low.

You really want to keep this as private as possible. Other than a spouse or life partner, don't  tell anyone about your good fortune until after you’ve created a solid plan with professional financial advisers.

3. Hire or contact a team of professional financial advisers to help manage your money, e.g. reputable banker, accountant, lawyer.

4. Don't hand out cash to family and friends.

Having a lot of money means you can help a lot of people, but that doesn't mean you can help everyone. This is one of the fastest ways to lose your money. Talk with your financial advisers about strategies and vehicles, such as trusts, that can allow you to help others and also preserve your wealth. Additionally, cash and other gifts can have significant tax consequences.

5. Don't forget about all those taxes you may now have to pay.

More than half of your winnings will likely go to taxes immediately. If you have investment income you'll have to pay taxes each year. All of the earnings are taxable.

6. Prepare a budget plan.

Even with a huge sum of money, you still ought to set up a budget plan. Don't spend wildly in the belief that it'll last forever. A financial adviser can help you with this task.

7. Donate to charity.

Do some good with your money! Identify some organizations you want to donate to that will also will help with your taxes. You can't help every sick person out there, so set aside a certain percentage of your money that will go to a selection of organizations.

 

One final tip, take the time to pray and thank God for your good fortune and ask for insight needed to use your windfall wisely.