What to Do If You Win the Lottery

| ARIE J. KORVING, CFP®

  1. Protect That Ticket and Take Your Time – make sure it is not lost or stolen before you collect your winnings.
  2. Don’t Quit Your Job Just Yet – you may not have the winner after all.
  3. Lottery winners attract people like bees to honey. These can be relatives, friends, strangers who heard about the winner’s good fortune. They want gifts (and you want to give them), they expect you to pick up the check. The most dangerous are the people who come to you with “deals” that will make you even richer. One of the best ways to handle this is to refer everyone to your financial advisor; explain that he’s the person who’s handling yo21ur finances. That way you are not the one turning anyone away.
  4. Hire Professionals – you can afford it.
  5. Change Your Address and Go Unlisted – you’ll have lots of people who want you to share your good fortune.
  6. Lottery winners have tax issues that they never had before. Before accepting that check, it’s a good idea to organize a small team – quarterbacked by your financial advisor – that includes a including a CPA and an attorney.

Buying a lottery ticket is not a wise investment. If you beat astronomical odds and win, you are the same person you were before even though people will suddenly find you incredibly witty, smart and good looking. But if you must buy a ticket – and win – keep these ideas in mind.

Finally, listen to the advisors you hired, pay off any debts, put money aside for the future, make contributions to charity and learn to say no.

 

Arie J. Korving, CFP Co-founder, Korving & Company 3

Written By ARIE J. KORVING, CFP®

Arie J. Korving, a CERTIFIED FINANCIAL PLANNER™ professional, has been delivering customized wealth management solutions to his clients for more than three decades. Prior to co-founding Korving & Company, he was First Vice President with UBS Wealth Management and held management positions with General Electric.

©  Korving & Company, LLC