Finance

What to do to save your money after winning a lottery?

What to do to save your money after winning a lottery?
Written by John

There are many who choose to rely on luck to change their lives. They focus on spending money and time on lottery tickets and other games of chance, example as https://sieukeo.com/ty-le-keo/. And also there are many winners who don’t know what to do after winning the jackpot prize except for throwing parties every night, buying luxury goods and quitting their job to enjoy the wealthy life. However, your sudden change can attract the attention of thieves and kidnappers who are always finding good chance to break into your house and steal your money. So, in order to avoid this, we recommend you to follow the advices below.

Protect your ticket and take your time

The first thing you should do after winning a lottery is to save your winning lottery ticket. You ought to have a couple of copy papers and find a safe place in your house to keep all of them. You can even go to the bank to ask for a safe deposit box.

Once you can make sure your ticket is safe, you should call the lottery authorities to ask for how long you can claim your prize. Then, sit down and start planning for your new life. You do not need to rush because once your ticket is secured, no one can take it to get the prize without your permission.

Kết quả hình ảnh cho lottery

The first thing you should do after winning a lottery is to save your winning lottery ticket/ Ph: indianexpress.com

Try not to quit your job immediately

When hitting a big jackpot prize, you are likely to stop working in order to enjoy a luxury life. It is understandable but please, think carefully again. You should not make this decision too quickly. Instead, you should keep your good fortune quiet at the workplace with a silent smile. Or else, before you get ready, your boss may begin to employ another potential candidate to replace you.

Hire a professional

If you are a tax attorney, a licensed accountant or a family planning attorney, you can know how to make a perfect financial decision with your money. However, in case you are a normal person who do not know much about financial issues, you should hire a good attorney to help you to do this.

Choose a suitable method of claiming your prize

There are 2 ways to claim your jackpot prize. The first one is to take the lump sum payment and the other one is take the long-term payout. Each of them has its own pros and cons that you should consider well before deciding.

The lump sum payment

This kind of payment does not allow you to take the full jackpot amount. Instead, they will pay you through an annuity more than 20 years. Because of annual inflation, the money you received can be worth a little more than the initial. So, if you know how to invest prudently, you can increase your money even more. In addition, your money will only be taxed at the rates at that moment, which can rise in the upcoming years. Thus, you can take advantages of it a little bit, too.

The long-term payout

With this type of payment, you will receive all of your money from jackpot prize in a period of 20 or 30 years. Of course, an annual payment will offer you a long-term cash flow which means you will receive an amount of money every year even if you quit your job and have no income. Therefore, you can save your winnings instead of blowing through them at once. And you can well budget a standard of living with this.

However, with long-term payout, you will not have the chance to take advantage of the compound interest. As time flies, the value of your money will decrease due to the inflation each year. And sometimes, in the worst situation, when you die, your grandchildren cannot receive your money. This depends on the kind of lottery you play in your state.

Kết quả hình ảnh cho lottery

An annual payment will offer you a long-term cash flow which means you will receive an amount of money every year even if you quit your job and have no income/ Ph: ontapblog.com

Pay off your debts

In some cases, if you are borrowing money from the government, they will automatically deduct it from your prize once you win. But you also should not forget about other liabilities that you are having such as car loans, mortgages or credit card bills. Always remember to pay them off after receiving your prize because you may not want to live a millionaire life with lots of loans and debts, right? And another reason for this is that in case you blow through all of your winnings, at least you have a clean slate so you do not have to worry much about it.

Kết quả hình ảnh cho pay off debt

Always remember to pay them off after receiving your prize because you may not want to live a millionaire life with lots of loans and debts/ Ph: fool.com

Support a charity

It is great to share your good fortune with other people who really need your help. This can also reduce the tax liability you have to pay by a certain margin. Therefore, we highly recommend you to find some charity organizations that you want to support and give them money or meaningful presents from your winnings.

Diversify your investments

If you have never had any investments before, it’s right time for you to do. You can ask financial experts for advice and start investing in index funds or any kinds of investments like real estate or online business. However, you need to be wise all the time, or else, you will be disguised by scams as investments.

Final thoughts

Winning a big prize at jackpot is a good thing and a bad thing at the same time. You can change your life forever if you know how to use your money smartly and vice versa. Therefore, with our suggestions mentioned above, we believe that you can find a suitable financial plan with your money once you win a jackpot prize. Last but not least, be smart if you do not want to lose all of your winnings!

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John

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