Some safety rules lottery winners muct follow
For a select few, winning the lottery is a dream come true and knowing how to manage the wealth and what decisions to make will guarantee the fact that winners fully enjoy the money. There are plenty of cases of players who went bankrupt only a couple of years after winning a jackpot, even though the money should have lasted for more than a lifetime. There are some common sense safety rules that lottery winners should follow, as these will help them stay grounded and avoid some of the most common issues.
Keep it secret, keep it safe
The first thing that lottery winners are tempted to do after realizing how lucky they were, is to share the news with friends and relatives. While the prospect is very tempting and contain your enthusiasm is harder than it sounds, this is definitely not a wise thing to do. One argument in favor of keeping quiet is that you get the chance of contemplating all alternatives, before actually doing anything.
Sign up the ticket and put it somewhere safe, so that no stupid incidents can occur and deprive you of your well-deserved prize. After cashing in the jackpot, don’t give in to temptation and disclose your identity, because being published by the media is not necessarily a good thing. Everyone will try to benefit in one way or the other from the good fortune, and your actions will be scrutinized, while you will be assaulted by requests. Protecting your privacy is the right thing to do when winning a massive jackpot.
Responsibly enjoy your money
Spending sprees are inevitable and it makes perfect sense for lottery winners to splash out a bit, especially if they went through long periods of financial scarcity. While there is nothing wrong with fully enjoy your money, make sure you take taxes into consideration so you don’t become a delinquent. Setting up a trust fund can be a great idea, because these are taxed less and will make it easier to pass on the fortune to your surviving relatives. If you like the idea of investing in a business, seek professional help and don’t hesitate to work closely with experts instead of doing everything by yourself.
Especially when it comes to huge jackpots, choosing the annuity is a better solution because you receive the full amount over the course of many years. If something goes wrong and an investment backfire, you still have a safety net in place and you mitigate the risks of going bankrupt. Don’t be greedy and if you have a favorite foundation or charity, remember to be generous and donate a small part of this newfound wealth. You will not only feel better about yourself, but also enjoy financial incentives regarding taxes.
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January 10, 2013 | by Ben Imler |