Survival tips if you suddenly win the lottery

(Dan Tri) - Two players in Missouri and Texas have just shared the $1.8 billion Powerball prize - the second largest jackpot in US history, just behind the record of more than $2 billion in 2022.

The figure of $1.8 billion has the power to turn an ordinary person into a financial empire overnight. The dream of changing one's life is beautiful, but history has proven that the path from "winning the lottery" to "living in luxury" is full of pitfalls that can turn dreams into financial tragedies.

Robert Pagliarini, author of “The Sudden Wealth Solution” with more than 20 years of experience advising “unwilling millionaires”, frankly shared: “The biggest fear of people who suddenly have a lot of money, especially those who win the lottery, is the fear that they will ruin it all.”

So, if you are one of those lucky ones, what can you do to turn your windfall into a lasting legacy rather than a financial curse? These are not just tips, they are a survival strategy.

Two Powerball players in Missouri and Texas matched all six numbers in last weekend's drawing, sharing an estimated $1.8 billion jackpot (Photo: Fox).

Phase 1: 72 golden hours – absolute silence and confidentiality

The moment you realize you’ve won, adrenaline will be pumping. But this is where a cool head is needed more than ever. Your first actions will determine 90% of your success in protecting this fortune.

Turn your ticket into an impregnable fortress

A lottery ticket is now more valuable than gold, but in essence, it is just a piece of paper. Until it is signed, it is an "anonymous document" - whoever holds it, gets it.

Action: Sign the back of your ticket. This is the first step in establishing ownership.

Create digital evidence: “I would take selfies and videos with the ticket,” Pagliarini advises. Back up these images to the cloud and email them to yourself. Take or photocopy a few extra copies.

Safekeeping: Immediately keep your ticket in a safe deposit box at a bank or other secure location.

Silence is golden

Here's the most important piece of advice that all the experts say in unison: "Keep your mouth shut."

Don't brag: "The most important thing you can't do is brag about it," says financial expert Rob Wilson. Don't post it on social media, don't tell your relatives, and don't celebrate in public.

Minimal circle of trust: “I would only tell your spouse, your accountant, and your lawyer,” says Wilson. The fewer people who know, the safer you are from pleas, scams, and potential dangers.

Remember the story of Timothy Schultz, who won $29 million at age 21. After a press conference to reveal his identity, his life changed forever. "I was no longer me, I was Tim the lottery winner." He was constantly approached by strangers. His privacy was completely gone.

Phase 2: Building a powerful "cabinet"

Before you go to the lottery office to claim your prize, you need to build a team of experts to protect you and your assets. Don't go it alone. You are no longer an individual, you are now the CEO of a financial corporation in your own name.

The "trio" of supreme advisors

Mark J. White, managing partner at Karpf, White & Associates, emphasizes that having a strong team is “critical.”

Estate planning attorney: This is the most important person. They will help you decide on the legal structure for receiving your prize, protecting your identity, and creating a will. Andrew Mims, founder of Oak Grove Estate Planning, recommends finding a trust attorney.

Certified Public Accountant (CPA): This person will be your tax "brains." They'll help you understand your massive federal and state tax obligations and decide which money will be most beneficial to you. "Don't plan as if you have the entire amount, because a large portion will be taxed," Mims warns.

Financial Advisor/Manager: You need at least one, or even two, reputable financial advisors who will help you build a diversified portfolio that aligns with your long-term goals, rather than rushing into risky investments.

Extremely important note : "Never, absolutely never sign a power of attorney to any advisor," warns expert Rob Wilson, "because that gives them too much control over your money."

Legal Shield: Living Under a Veil of Secrecy

The best way to protect privacy is to receive rewards through a legal entity rather than as an individual.

Set up a Trust: This is the tool most highly recommended by experts. Even in states that require anonymity, receiving your prize through a trust can help you remain anonymous. Plus, a trust allows you to set clear spending rules, protect your assets from impulsive decisions, and ensure they are passed down through generations.

Limited Liability Company (LLC): This is also an option for anonymity.

Once you set up this shield, you can hire a professional company to “clean up” your digital footprint, remove personal information from the internet, and track down impersonating accounts.

Andrew Mims told FOX Business that the best way to receive lottery prizes is through setting up a trust (Photo: Reuters).

Phase 3: Get a "lump" or a "drip"?

This is the biggest financial decision of your life: should you take a lump sum or an annuity? There is no right answer for everyone. Each option has clear pros and cons.

Scenario 1: Receive lump sum

With this option, the winner will receive approximately $820.6 million in cash before taxes from the $1.8 billion jackpot. This means you have full control of the huge amount of money immediately, which you can use to invest, do business, do charity or simply spend as you wish. If you know how to build a smart financial strategy, this money can be profitable much faster than the option of receiving it gradually over the years.

Another important advantage is that the assets will be left to your heirs in full if you pass away, instead of being “stopped” like with annual installments.

However, this scenario also comes with huge challenges. The winner will face huge taxes, levied in the first year at the highest rate. At the same time, having a mountain of money in your hands can easily lead to the temptation to spend lavishly or make bad investment decisions. To preserve wealth, financial discipline is almost mandatory.

Scenario 2: Receive “annuity”

Under this plan, the winner would receive the full $1.8 billion, but divided into 30 payments over 29 years (before taxes). Each payment would increase over time, creating a steady, long-term stream of income.

The biggest advantage of this option is financial security. You will have a stable source of income for three decades, limiting the risk of bankruptcy due to major management mistakes.

Financial planner Nicholas Bunio even said he would choose an annuity because it allows the winner “to make a few small mistakes without having to make a big impact.” Plus, the tax burden is lighter because you only have to pay taxes on the money you receive each year.

However, the downside of this form is the lack of flexibility. Winners do not immediately have a large amount of capital to invest or carry out big plans. Another risk, as expert Rob Wilson warns, is that in some cases, if the winner dies, the payments may stop, leaving the heirs without the full amount of the prize.

“This choice is very personal,” concludes advisor Mark J. White. It depends on your financial discipline, life goals, and risk tolerance. Discuss it thoroughly with your “advisory triad” before making a final decision.

Overcoming the "lottery curse"

Winning the jackpot is not a destination but the beginning of a whole new journey.

Winning money is luck, but keeping it is an art. Many lottery winners lose everything quickly because they still think like a salaryman, instead of learning to think like a wealth manager.

Mark J. White argues that classic mistakes are often repeated by most winners. They spend recklessly, buy things without a budget, and change their lifestyle too suddenly. They forget about their tax obligations, spend freely in advance, and then are stunned when a huge tax bill hits at the end of the year. Many also risk their money on “get-rich-quick” schemes or listen to unprofessional advice. And finally, they easily become “ATMs” for friends, relatives, or even get taken advantage of by fake “experts”.

To avoid making the same mistakes as failed lottery winners, remember:

Budgeting: Live on the returns from your investments, not on the principal.

Learn to say "No": You will receive countless requests, from investments, to begging, to loans. Learn to refuse politely but firmly.

Invest wisely: Start with safe options like "low-cost mutual funds or index funds," advises Steven Evensen of Gerber Kawasaki.

Enjoy life, but don't waste it: Allow yourself to enjoy the fruits of your labor, but don't make sudden and ostentatious lifestyle changes.

Winning the lottery doesn't automatically make you a financial expert, it makes you the target of the world . By keeping your cool, building a solid team, and making calculated decisions, you can turn your momentary luck into a legacy of prosperity for generations to come.

Source: https://dantri.com.vn/kinh-doanh/bi-quyet-sinh-ton-neu-bong-dung-trung-so-doc-dac-20250908001748658.htm