The odds of winning a lottery are one in a million or less and when such rare victories come to you there would be no limits to your excitement. Holding on to your horses of excitement, it needs stepwise planning. Lottery tickets appear glittery with rising hopes for wealth expansion but when the prize is claimed the road is not that easy. A mini attack to the winner is when he/she comes to know about subtraction in their goody bag. It begins with the taxes to be paid to the government, the company owning the lottery etc. The wealth starts to narrow down at that very moment when the winner claims the prize. The thought of “what if “ you win the lottery still stands as one of the most exciting ones and no individual can ever control their brains to stop the hormone rush of ideas on the money earned. Let us ponder and evaluate this situation with precise structuring of the finances.
1.Anonimity is the key to sustaining your prize value- The awareness of your money growth attracts every organization or individual near you and to stay anonymous after begging the prize saves you from the haul. Constant badgering from charity funds to companies to long lost friends, all will be sniffing around you for handouts. Rules on the winner vary in all countries. Many places allow the winners to get dissolved in the air without announcing any word about him/ her and few countries announce the names and their destinations. New York made a loud celebrated announcement regarding the winner. Disguise is a door to escapism which a lot of players implement when they choose to remain behind the doors. The prize begged by the person might not be the real winner and only a substitute to avoid further disturbances.
2. Consult a tax professional before encashing- To win a lottery is great luck but it’s maintenance demands great planning. Countries differ with their tax rules and policies, to understand which it is important to consult a tax professional before begging the prize. Complex things get easier when you have a financial professional along. You will have a choice of taking the whole prize at once or getting paid in 30 installments over 29 years. When you choose to take the entire prize then entire tax needs to be paid at the same time. With an annuity you are taxed as you receive the payments. The wholesome amount might lead you to opportunities of big investments and annuity might help you to control your over spending. It depends on your individual aesthetics towards money where in the tax professional will guide more correctly. The possibility of your demise in next 30years will lead to your family paying the taxes for annuity which might be a problem and in such cases people choose to have life insurance policies for covering the estate bill. Alarm of 60 days is provided before begging the prize and weigh the pros and cons of the entire system by crunching in a professional.
3. Rule out the sudden lifestyle changes- Prada, Gucci, Versache, attires and bags, Mercedes will definitely be in your bucket list but do not spend on these commodities with the lottery shower. Take a deep breath and settle down with the necessities. Invest huge, spend less. Be mindful while working on your monetary level and also upgrade after the lottery. It is safer to understand the spending instead of only spending it and above all is to construct your future with the fortune that your luck has gifted you.
4. Invest wisely- The fortune shall be divided into two halves considering the two different types of investment. One is the short term investment which shall not be looked at for the initial months and then is the long term investment which shall be put which remains fruitful for the entire life. Do not invest into things that sound too good to be true.
5. Stick to budget life- Wealth expansion does not mean you have to start living as lavishly as never before. Change in lifestyle is ought to be there but to a limit where you can maintain it for the coming years also. When you are not accustomed to living a lifestyle it won’t take much time to turn the money into ashes. A simple and effective way to restrain yourself is when you spend the profit amount and not the principal. Spending principal will bring back to square one so it is advisable to spend in limit and play within the budget.
6. Protect your assets- Who does not choose to come near the wealthy man? Spouses, ex-spouses, lawsuits, everybody approaches a wealthy man. A man with a deep pocket can be persuaded for innumerable reasons, be it the charitable functions or a business strategy, it gets countless. To protect your assets erect roadblocks to make it difficult for them to near you if not impossible. Asset Prevention Pact includes partnering with charitable trusts or with family members or companies with less liability which will gradually conserve the assets and keep the money mongers away.
7. Consider Estate planning- Since you have experienced the sudden wealth expansion you need to ponder on estate planning to preserve and also double your wealth with calculative efforts. If you wish to plan to relish your income with your near ones then this might be the wise step In the current era. The lucky lottery might have turned you fortunate and the estate investment might turn you wealthier than ever before.
A few wise steps after attaining will lead to happiness larger than life along with multiple tax deduction yet having a calculative life. Keep rolling your numbers until you get lucky!