May the odds ever be in your favor to start the new year an estimated $1.15 billion richer.
Should someone win the December 27 Mega Millions drawing, they will end the year with that estimated amount in their pocket.
If won, the prize money, which amounts to $516.1 million in cash, would be the largest amount won in December and the fifth largest in Mega Millions history.
No winner was named in the Dec. 24 Mega Millions drawing, which featured a jackpot totaling an estimated $448.8 million in cash. The winning numbers were 11, 14, 38, 45 and 46, and 3 for the Mega Ball.
The largest jackpot in Mega Millions history occurred in 2023, when one winning ticket in Florida netted someone $1.6 billion.
What exactly should you do when you realize that you have the lucky ticket in your hands?
While big paydays have spawned countless rags-to-riches stories over the years, they have also spelled disaster for some. Not only do most winners deal with people looking for a handout, but there have also been cases of bankruptcy, murder, theft, drug abuse and various legal problems in the wake of big wins.
So before you start picking out the gold finish for your fleet of yachts or buying a set of matching mansions for all your friends, here’s a list of nine tips on how to deal with a mega windfall from people who know what they’re talking about to have.
While signing the back of the ticket is a step a winner wants to take, Robert Pagliarini of Pacifica Wealth Advisors once told TODAY that it would be smart to take another step in case you ever have to prove it’s yours .
“I would take a selfie with it,” he said. “I would take a video of the card and I’m smiling.”
That selfie or video clip is not meant to brag on social media. While no one blames you for wanting to shout from the rooftops that you’re the newest member of the billionaire club, Pagliarini added, “You really want to keep this as private as possible.”
Or as Laura Adams, author of “Money Girl’s Smart Moves to Grow Rich,” once told TODAY: “Other than your spouse or significant other, I wouldn’t tell anyone about your happiness until you’ve made a solid plan with your partner.” the professionals. Well-meaning friends and family may not offer you the best financial advice.
A man who won $20 million on a Quick Pick ticket in 2014 is considering seeking professional help as his own top tip.
Cameron, who preferred not to reveal his last name when he spoke to TODAY, said: “Get a financial advisor and get a lawyer.”
Ric Edelman, chairman and CEO of Edelman Financial Services, recommended using a financial advisor “as a buffer from anyone asking you for money – this will help insulate you and protect your relationships.”
As excited as you are to deposit that huge check into your bank account, Kathleen Jacob, public affairs specialist with the North Carolina Education Lottery, suggested holding on for as long as possible.
“One of the most important things we recommend players do is take their time,” she said. “Prize claiming policies may vary by state, but here in North Carolina players have 180 days to claim their prize. This gives a player time to make some very important decisions, such as what he wants to do with the money and how he thinks it will change his life.”
If you have a lot of money, you can help a lot of people, but that doesn’t mean you can help everyone – and neither should you. “Don’t feel obligated to bail out, reward, lend or distribute large sums of cash to friends and relatives,” advised William R. Patterson, chairman and CEO of Baron Solution Group. “It may seem like harsh advice, but this is one of the fastest ways to lose your money. Talk to your financial advisors about strategies and tools, such as trusts, that can help you help others and also preserve your wealth. In addition, cash and other gifts can have significant tax consequences.”
Even though the jackpot is over a billion dollars, that doesn’t mean you’ll actually see all that money.
More than half will likely go straight to taxes. And it doesn’t end there. “It sounds boring, but planning for taxes is very important,” Erica Sandberg, personal finance expert and author of “Expecting Money: the Essential Financial Plan for New and Growing Families,” once told TODAY. “The tendency is not to plan or anticipate taxes. If you have income from investments, you have to pay taxes every year. If you walk away with $500 million, it goes into some kind of investment account that you can use to make money. All that income is taxable.”
How can you blow through that kind of money, right? Wrong. Even with a huge amount of money, you still need to set a budget. “Realize that it is not a bottomless pit of money. Don’t spend too much money thinking it will last forever,” Edelman said. “A financial advisor can tell you how much income you can receive monthly from your profits – you should live on that amount or less.” Sandberg agreed, saying, “Set a budget, but also allow yourself those dream purchases. It’s a balance.”
Do something good with your money! “Identifying a few organizations you want to donate to will help combat any feelings of guilt and will also help with your taxes,” Sandberg said. “However, you will have to set boundaries early on and stick to them as much as possible. You can’t help every sick person, so set aside a certain percentage of your money to go to a selection of organizations.”
Along with your team of professionals helping you manage your money, you may also consider hiring a therapist to help you manage all the emotions that come with winning the lottery. “A therapist should probably be your second call after telling your closest family members,” Sandberg said. “People who have a huge windfall cannot anticipate all the emotions they will feel. It’s quite a huge pill to swallow. It’s not as joyful as people expect. Expect your emotions to fly all over the place. It could be terror, a lack of merit, the pressure your friends, family and strangers put on you. Find someone who can help you manage the emotional response.”
Editor’s note: This story was first published in January 2016 and has been updated to reflect the latest Mega Millions jackpot.
This article was originally published on TODAY.com
