After winning the lottery, the next step is to gather your financial dream team. If you win the jackpot, you should hire an estate planning attorney, certified public accountant, private banker, and investment adviser to manage the vast sum of money. Your team should also include insurance experts. If you don’t have these professionals on your team yet, you can always hire them as you need them. After all, you won’t be able to handle the newfound wealth on your own.
In the U.S., winnings are often paid out as a lump sum, not as an annuity. In some cases, lottery winners may choose to receive an annuity payment instead, which is more tax-efficient. However, when you take into account the time value of money and income tax, a one-time payment may be significantly less than the advertised jackpot. However, it is important to note that withholdings will vary based on the jurisdiction and the type of investment.
While there are some exceptions to the rule, you should not rely on these numbers as your sole source of income. Even though they are significant, they will not cover all combinations. That means you can use other assets or invest your money in other ways to make a more lucrative income. In addition, you should contact a financial planner and/or attorney before you withdraw your prize money. Lastly, make a copy of your winning ticket and keep the original ticket in a secure place. And remember: lottery jackpots can be huge!