At Running Point Capital, we recommend lottery winners follow the 8 Ps
WHAT TO DO IF YOU WIN A BIG JACKPOT—we were interviewed live by CBS/KCAL News anchors Sheba Turk and Kalyna Astrinos to talk about the Powerball Lottery and what winners or potential winners should do.
Here is the good news—we still have a chance!
U.S. exceptionalism is made up of millions of smaller self-built lotteries every time entrepreneurs sell their own businesses and receive a major payday.
But if you land a Powerball jackpot of $1.7 billion or more—the number splashed across the news is a mirage—it is the gross total paid out over nearly three decades, before taxes even get a sniff. The annuity option delivers steady payments, but each one gets trimmed by Uncle Sam (and often your state) at ordinary income rates. At the federal level, that’s roughly 37%, plus whatever your state demands.
Most people grab the lump sum; instant gratification with a haircut!
A $1.7 billion jackpot in lump-sum would be approx. $960MM before taxes and depending on the state, $500 to $605MM after taxes. Still life-changing, but not build-your-own-space-station cash.
Winning the lottery is like being handed the keys to a rocket ship. With no plan, you might spiral into the void. With the 8 Ps, you’ve got a flight path to lasting wealth, security, meaning, and—most importantly—joy.
The money itself is only the first hurdle. The real challenges lie in overspending, poor estate or investment choices, and managing a sudden flood of requests from friends, family and strangers.
That’s why at Running Point Capital, we recommend lottery winners follow the 8 Ps:
PATIENCE: Don’t rush to claim. Check the rules on timing, breathe, avoid rash decisions
PRIVACY: Keep your win under wraps. The fewer who know, the safer you are from scammers, opportunists, and sudden long-lost “cousins”
PROTECTION: Guard the ticket like it’s Excalibur. Photocopy it, sign it (leaving space for a trust or LLC), and lock it somewhere fire- and water-proof
PROFESSIONALS: Before you cash in, assemble your pros: a fiduciary financial advisor, an estate attorney, a CPA, and ideally a multifamily office that coordinates the whole team—structures like trusts can protect both your assets and your identity.
PHONE: Change your phone, email, and go dark on social media. Make it hard for predators to reach you
PREPARE: Take time to map out your priorities. Let your advisory team run interference and filter requests
PPLI: Private placement life insurance can be a powerful wealth and estate tool for qualified investors
PASSION: Finally, think about what excites you. Celebrate wisely, consider lifestyle upgrades, and if philanthropy is part of your vision, research causes and consider formal structures
Winning the lottery is like being handed the keys to a rocket ship. With no plan, you might spiral into the void. With the 8 Ps, you’ve got a flight path to lasting wealth, security, meaning, and—most importantly—joy.
Gallery of Photos
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Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-25-223
