1. Consult a Tax Professional Before You Claim the Prize.

You have a choice between taking the payment as an annuity or as a lump sum. If you take the annuity, you will pay taxes as you receive your payments over time. With the annuity, the taxes will be paid on the entire amount when you receive it. The other consideration is what you could earn by investing the money if you took it as a lump sum. A tax professional can help you run the numbers before you decide.

2. Pay Off Your Debts.

Your rate of return is equal to the interest rate on the debt. If you are currently carrying credit card debt at 16%, paying off that debt will yield a 16% return on your money. You are not likely to find that kind of return anywhere else in today’s market.

3. Don’t Buy a Porsche – at Least Not Right Away.

Everyone has heard the stories of lottery winners who that ended up bankrupt. For most, it was simply a matter of not being prepared mentally for managing their new money. The best advice is to wait several months before making any splurge purchases. Those months will give you time to assemble a team of advisors, set up a budget and make sure the money will continue to benefit you and your family for many years; then, and only then, should you consider splurging on yourself whether that is in the form of a luxury car, new house or vacation.

For more information on helpful tips to consider if you've won the lottery, check out our full article or feel free to contact our office at (763) 420-5087 with any questions.

Chuck Roulet
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Nationally Recognized Estate Planning Attorney, Author, and Speaker
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Thaksen - Thailand Lottery Player 12/28/2012 03:54 AM
Chuck Roulet, I must read this '8 Tips' before, when I won first Thailand Lottery. I agree with you because I spend most of my lottery winning money unnecessarily. If that time I follow this tips then I can achieve my all ffinancial target few years ago. Thanks, for sharing such an important info with all of us. Thaksen
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Chuck Roulet, Attorney at Law 09/26/2023 7:28 PM
Hi Thaksen, Thanks for sharing and I'm glad you found this article helpful. As you learned, careful planning can make all the difference. Be well, Chuck
Chase Howard 07/05/2013 09:59 AM
Thanks for sharing this. I have read online that you also have the option of selling annuity payments. How true is it because I have never won the lottery before and would like some advice on what to do with the money if i ever did.
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Chuck Roulet, Attorney at Law 09/26/2023 7:30 PM
HI Chase, I'm glad you found the article helpful. Yes, there are companies out there that will pay you a one-time fee in exchange for your annuity. You should check with your CPA and financial advisor before doing so. Be well, Chuck
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