Lottery Jackpot rules
Winning a lottery jackpot is a joyous occasion. Soon, however, it can turn into a nightmare.
There are rules for winning a lottery jackpot that make life much easier. Everyone dreams of winning all that money, but those dreams are never filled with the headaches that can come along with new found fame.
The following tips have been taken from a series of interviews with actual jackpot winners. (based on U.S. winners)
- Read the fine print. Lottery winnings are usually paid over a 20 to 25 year period, and the government takes 28% right of the top. This roughly narrows down to $36,000 yearly. With cost of living increasing dramatically each year, this means that $36K translates roughly into $11,000 in 20 years. Although it means only receiving about 50% of the jackpot amount, it’s better to take a lump sum; if it’s available.
- Money is a MEANS to wealth, not wealth itself. The best choice would be to invest in oneself. Pessimism only breeds contempt and unhappiness. Follow the rules of positive thinking. Remember, money is not the answer to all problems. Take the Ohio man who won $7.5 million. He bought a house, then burned it to the ground. After testifying the money made is life a living hell, he was charged with aggravated arson, and still has to tolerate many more years of those dastardly lottery payments.
- Get it in writing. Many people join lottery groups, which are made up of people who pool there money to buy a larger number of tickets. The thought is, the more tickets, the better chance of winning. Lotteries payout to individuals. If a group doesn’t do the necessary paperwork to assure their winnings as a group, the person cashing the ticket ends up paying all the taxes, etc.
- Sign and claim. An unsigned lottery ticket can be cashed by anyone. Make sure to sign the ticket as soon as it is bought. Claim a winning ticket within 180 days of the drawing date. There’s been much money lost to unclaimed tickets.
- Don’t make promises. In the first 90 days after winning: promise no one anything, take a leave of absence from work and get out of town. It is best to put winnings into a 90 day CD until further plans can be made.
- Further plans. Get an unlisted phone number, a post office box, a security system for home, and a group of advisors, including: a tax accountant, a financial planner, an investment advisor and an estate planning attorney.