How Do Lottery Winners Manage Their Finances?

Lottery winners may need extra help when it comes to managing their massive windfall.


Lottery fans may think all of life’s problems can be solved if their luck comes in and they get the chance to take millions in winnings home – but some may not realize that having so much cash in the bank is a trickier matter than they originally anticipated.

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Take it slow


When getting used to the initial notion of having a huge amount of wealth after striking lucky playing the lottery, experts recommend taking a measured approach to spending.


Speaking to the Daily Telegraph, director of Deloitte – one of the world’s largest audit, tax and corporate financial services providers – Patricia Mock explained that the best option for those who win big playing huge jackpot-wielding games such as the USA Mega Millions or EuroMillions should take it slow.


She advised people not to rush out and buy all the dream items they have always lusted after – such as sports cars, expensive jewellery and property – and recommends really thinking about how best to divide the sum between luxury items and setting aside funding for the future and loved ones.


“Think about a diversified investment strategy so you’re not putting all your eggs in one basket – what do you really want to invest in,” she commented.


Hire a financial adviser


Ms Mock’s thoughts were echoed by Michael Whitty, a lawyer who specialises in estate planning and taxation with Vedder Price in Chicago.


He told the Calgary Herald that it is not a good idea to rush into the millionaire lifestyle and recommends seeking the advice of an expert to ensure people do not fall into the trap of frittering away their wealth.


“My best advice to the lottery winners is three things – take it slow, keep it quiet and get a good financial adviser,” the legal professional suggested.


He noted that everybody’s plans for what they want to do with their lottery finances are unique, but taking it slow and asking for investment guidance after scooping a jackpot could be a wiser move overall.


Give to charity


Giving back to good causes is something lottery jackpot winners usually consider after taking home a massive top prize and experts recommend those who cannot pin one charity down to donate to consider what struggles they and their loved ones have endured, which could help identify one or two organisations they could to give to.


Some financial professionals recommend winners who have taken home a payout that is more than seven figures long look into giving away between ten and 20 per cent of their prize.


Going public


One of the major choices a big lottery winner needs to make after they claim their millions is whether or not to go public.


Some may be daunted by this idea, but Illinois Lottery spokesman Mike Lang said: “Once they do the publicity and press conference and things, they look back on it pretty fondly.”


He added that lotteries tend to have expert consultants who can advise winners on the media and the process of going public – which can yield some good things for a lottery fan.

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