1. Breathe
Instead of impulsively rushing to lottery headquarters to claim your prize, take a deep breath. You have a short amount of time to claim your prize — anywhere from three months to a year, depending on where you purchased your ticket.
“Pause before making big decisions,” Irwin said. “This is the quiet period before the chaos.”
2. Protect your ticket — and your privacy
Experts generally recommend that you sign the back of the ticket, take a picture of yourself with the precious piece of paper, and then keep it safely in a lock or safe deposit box at your bank.
However, it’s worth first making sure you know the rules for claiming your winnings in the country where the ticket was purchased.
If you bought it in a country that requires the winner’s name to be publicly shared, you may be able to claim the prize on behalf of a trust or other legal entity, thereby keeping your name out of the public eye.
Also, share information about your windfall with as few people as possible, Irwin said. News has a way of traveling, and long-lost friends or family — or scammers — can turn up on your doorstep.
“Privacy is key,” Irwin said. “This keeps both you and your family safe from scammers or others who may start to come after you.”
3. Seek professional help
You have some pretty tough financial decisions ahead of you, which is why it pays to have a team of professionals to help you. This group should include an experienced attorney, financial advisor, tax advisor, and insurance expert.
For starters, you’ll need to decide whether to take your award as a reduced lump sum or as an annuity of 30 payments over 29 years. Either way, the IRS will take a piece before the money gets to you.
The cash option – which most winners choose – for this $1.28 billion jackpot is $747.2 million. Mandatory federal withholding of 24% on that amount would reduce that amount by about $179.3 million.
However, since the top marginal rate is 37%, the winner should expect to owe much more come tax time. Additionally, state taxes are usually withheld or owed depending on where you live and where the ticket was purchased.
4. Consider what lies ahead
If you’ve spent your days working at a job and are planning to quit, it’s worth considering the long-term implications of doing so.
“If you’ve worked before, there’s going to be a change in your daily routine,” Irwin said. “Think about how you’re going to spend your days and how you can make sure you still have a purpose in life.”
Meanwhile, the Powerball jackpot is estimated at $170 million for Saturday night’s drawing. Your chance of winning the jackpot in this game is about 1 in 292 million.
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