What To Do If You Win The Lottery
This article is posted under Mindsetting, Personal Finance.
The biggest lottery jackpot to date in Philippine history – the Grand Lotto 6/55, is now at more than P450 million.
If you win this amount, what would you do?
I asked my friends this question and almost everyone said that they’ll quit their job and retire, build their dream house and travel around the world.
Then again, I asked – if you win the lottery, and excluding the celebration and things you’d do for charity, what would you do within the first week, first month and first year of becoming a lotto winner?
Now some said they’d first pay all their debts, then open time deposit accounts across several banks to “spread their money around”. After which, they’d invest in real estate or probably get a business franchise.
Not a bad plan I’d say.
If it was me, then this would be my list of things to do after winning the lottery:
Keep quiet and hide my winning ticket in a secure place
You should probably wait a few weeks to at most, around two months before claiming your prize. Not only to wait for the “buzz” to die down but more importantly, to plan. It’s a lot of money and once it’s in your hands, it can overwhelm you and lead you into making bad financial decisions.
Moreover, you also need to determine the people whom you can trust with the “secret” and help you plan ahead. Your family is usually the default here but do consider only choosing one or two. But I think the best option is really not to tell anyone at all.
Assemble “the team”
You’ll need three people – a financial planner, a lawyer and an accountant; preferably in that order. A certified financial planner who has experience with handling wealthy clients can point you in the right direction so you can protect (and grow) your money when it finally comes.
And together with your lawyer and accountant, you’ll have a team of competent advisers who can help you handle all the people who will – ask money from you, pitch investment and business ideas to you, claim to be your relative and all the other “crazy” things that could happen if the truth about you comes out.
Find a bank and claim the money
Together with your team, choose a bank where you can deposit your money. Ask about their “private banking services” and have a good grasp of the bank rules and regulations on this. When all is set, then it’s time for you to claim your money. Yay!
Hopefully by this time, it’s already been around a month or so when you screamed and jumped up and down inside your room. And depending on what you and your financial planner has agreed upon, you may claim the lump sum or just get annuities for your prize.
Get ready for a life-changing experience
Lastly, it’s time for you to have that life-changing experience of winning the lottery. Remember to always consult your team before making any big decisions with your money, but also – take time to increase your financial literacy. You have all the time in the world now to learn so you actually have no excuses.
Remember that there have been countless lottery winners who have lost all their winnings. Don’t be one of them. Learn how to invest and make your money last for generations.
Some advice from previous lotto winners – Source
- Save some. Spend some. Give some.
- Don’t change, or take steps to guard against change. Your priorities and values got you this far, they’ll see you through.
- Enjoy the moment, the day, the month, the year. Do not move or try to live outside your comfort zone.
Lastly, you might want to read one of my very early articles here: How To Increase Your Chances of Winning the Lotto
How about you? What would you do if you win P450 million in the lottery?
Get more articles like this by subscribing to Ready To Be Rich.
Photo credit: sagamiono
Choose the next article that you want to read:
Get Free Tickets To Steps To Financial Peace Conference 2012
Personal finance coach, Randell Tiongson, will again be holding his annual Steps to Financial Peace Conference this May 18, 2012. It will happen from 10:00 AM to 6:00 PM on Friday, about a couple of weeks from now at the Victory Greenhills Center, in San Juan City, Metro Manila. This year, he’ll be joined by wealth coach,...
Reader Mail #18: Smart Money Moves With Your Savings
I always say that the very first thing you should do if you want to achieve financial freedom is to learn how to save money. Be frugal, pay yourself first, avoid unnecessary expenses – it’s just some of the things you can do to start building your wealth. And after a few months, or even just a...