What to do if You Win the Powerball Jackpot?

The Powerball jackpot has Americans everywhere lining up at convenience stores and gas stations and buying a ticket in the hope that it may be that lucky one. The list of things to do if they win the megabucks that come with the Powerball are vast and varied – buy a house (or several), buy a new car, buy a yacht, quit the job, travel around the world, buy season tickets to a baseball stadium, and so on.

So what would you do if you actually won all that money? If you do, there are a few important things you should do to optimize and protect your winnings.

You think have it made. You think you no longer have to concentrate. Instant wealth can do that to you. But instance wealth does not mean instant knowledge. You cannot upload knowledge like they did in the Matrix no matter how much money you have now. You need a tax lawyer - here you go to make that happen: http://tax-lawyers.usattorneys.com/. 

Choose between an Annuity and a Lump Sum Payment

There is one major question that all big lottery winners have to ask themselves – do you want take the lump sum amount or the annuity route?

Some tax lawyers believe you have more of an advantage by opting for the annuity. With the lump sum, you will need to pay taxes on the prize itself and then on any investments you make with the money. If you choose the annuity, you will need to pay taxes on each installment, but no other taxes will be levied since your money is essentially being held by the government. But this could hurt you as well since if you take the lump sum and commit to some savvy investing, you could come out ahead than rather if you went the annuity route.

Understand the Rules and Make a Plan

Before you rush out to claim your ticket, stop for a second and let it all soak in. You are now a multimillionaire and it is all very exciting. However, if you act impulsively when you win the lottery it can backfire on you. In fact, it can cost you everything!  

It is important for you to take the time to understand the rules and make a plan. First, make a copy of your winning ticket and put the original somewhere safe. When family, friends, and creditors find out that you have won, they will be knocking your door down. Probably literally. You may have hire some security help.

To avoid this, find out the rules in your state to see if you can remain anonymous. Also find out if your spouse is entitled to a part of your winnings. Your ex might be entitled to some of it as well. Laws vary from state to state, so make sure that you look into these key points. A tax lawyer could be on the cards for you since you need to know the repercussions of this event. You may need legal help as well anyhow since you may want to open up a Burger King or another type of franchise to park some of your money and to gain a little profit year after year.

You cannot buy a delicious Whopper with this website http://tax-lawyers.usattorneys.com/ but you can find the legal help you need for tax planning and purposes. This website is worth more than the lottery, this website saves lives. The lottery, according to some, just wastes lives and certainly money.  

Calculate How Much will go to Taxes

It is fantastic news that you have won the jackpot, but this does not mean that you are free from any taxes. In fact, you will have to pay a lot of taxes and this will not change since you are in a higher tax bracket. But since you may quit your job you may not have any income so this is something else you will want a legal representative for. Do not assume anything.

You can check out the Powerball website to find out how much of your winnings will be deducted for federal and state taxes. This will depend on whether you take the annuity or a lump sum and where you live. You will need a tax lawyer and perhaps an estate attorney, a tax preparer (debatable), and a certified financial planner. 

If you win the Powerball jackpot and you are not smart with your money, you can be bankrupt in two years, give or take. Just go ask Hammer, Allen Iverson, Mike Tyson, and a strong of others who hit it big and then washed it all away with dumb spending habits and being surrounded by greedy family and friends.

You need to protect your assets and make sure that you are financially secure for the rest of your life, no matter what problems pop up in the future. But this is hard to do when your friends and family are asking for a handout and have this incredible business idea and only need some seed capital to get it off the ground. You may not even seen this person in years! And sure they are good for it, just like Dumb and Dumber. Make sure you keep that I owe you!

A Sucker’s Game

There is a stat out there that says 70% of lottery winners will end up bankrupt even with a tax lawyer a phone call away. Human nature is about consumption. The hype makes it worse. Who you know compounds the problem. Your conscious may even hurt you as well. That is why many people do not participate in the lottery since it is a sucker’s game and who really wants to become rich based on luck?