“Pause before making big decisions,” Irwin said. “This is the quiet period before the chaos.”
2. Protect your ticket — and your privacy
Experts generally recommend that you sign the back of the ticket, take a photo of yourself with the precious piece of paper, and then store it safely in a lock or safe deposit box at your bank. However, it’s worth first making sure you know the rules for claiming your winnings in the state where you bought the ticket. If you purchased it in a state that requires the winner’s name to be publicly disclosed, you may be able to claim the prize in the name of a trust or other legal entity, thereby keeping your name out of the public eye. Additionally, share information about your windfall with as few people as possible, Irwin said. News has a way of traveling, and long-lost friends or family—or imposters—could turn up on your doorstep. “Privacy is key,” Irwin said. “This provides security to both you and your family from crooks or other people who can start robbing you.”
3. Get professional help
There are some pretty heavy financial decisions ahead of you, which make it worthwhile to have a team of professionals helping you. This team should include an experienced attorney, financial advisor, tax and insurance expert. For starters, you’ll need to decide whether to take your award as a reduced lump sum or as an annuity of 30 payments over 29 years. Either way, the IRS will take a piece before the money gets to you. The cash option – which most winners choose – for this $1.28 billion jackpot is $747.2 million. A mandatory 24% federal withholding tax on this amount would reduce this amount by approximately $179.3 million. However, because the top marginal rate is 37%, the winner should anticipate owing much more at tax time. In addition, state taxes are usually withheld or owed, depending on where you live and where the ticket was purchased.
4. Think about what’s in front of you
If you’ve spent your days working at a job and are planning to quit, it’s worth thinking about the long-term implications of doing so. “If you were working before, there’s going to be a change in your daily routine,” Irwin said. “Think about how you’re going to spend your days and how you can make sure you still have purpose in your life.” Meanwhile, the Powerball jackpot is estimated at $170 million for Saturday’s drawing. Your chance of winning the top prize in this game is about 1 in 292 million.
