What to do if you win the $1.4 billion Powerball lottery this weekend?

October 7, 2023

What to do if you win the $1.4 billion Powerball lottery this weekend?

Common challenges

Following 33 consecutive drawings without a winner, the Powerball jackpot has ballooned to over $1.4 billion; the fifth largest potential lottery payout in U.S. history.

The most significant challenges that you will often face as a lottery winner include overspending, making unwise estate and investment decisions, and dealing with requests for money from family and friends. You can try to overcome these hurdles, by following Running Point’s 8Ps outlined below.

The first thing to do if you win the lottery: Follow the 8 Ps!

If you literally win the lottery, we at Running Point Capital, a multifamily office, suggests following the 8 Ps: patience, privacy, protection, professionals, phone, prepare, PPLI, and passion!

  1. Patience: Don’t rush to claim the prize, but do check how much time you have to claim it; keep a level head and avoid making impulsive decisions.
    • Sudden wealth can be a significant life change, so take the time to adjust and adapt
  2. Privacy: Don’t tell anyone right away in order to avoid threats or nefarious people coming out of the woodwork
    • Keep your personal information private and be cautious about sharing news of your good fortune with the public
  3. Protection: Protect your ticket—make copies, take photos, sign the back (leaving room for the name of a trust or LLC), place it in a water and fire-proof place
    • Signing the back of your winning ticket helps to establish ownership and prevent someone else from claiming it
  4. Profesionals: Before claiming your prize, hire or speak with reputable professionals that can help and guide you such as a financial advisor who is a fiduciary that puts your interest first, an estate planning attorney for wills and trusts, a CPA to advise on accounting, or a multifamily office that combines and coordinates all those services under one roof
    • Consider setting up a trust or using legal structures to protect your identity
  5. Phone: Change your phone number and email address, delete social media accounts, and move correspondence to a P.O. Box for privacy
    • You want to make it as difficult as possible for unwanted people to reach you
  6. Prepare: Take time to plan what you want and figure out priorities; maybe take a little vacation before making huge decisions
    • Lean on your professional financial advisor or multifamily office for guidance and to handle outside requests
  7. PPLI: Private placement life insurance (PPLI) can be an attractive wealth management and estate planning tool for qualified purchasers with private and tailored investments designed to balance with the rest of your portfolio
    • The income and gains on these assets can grow and compound tax-free for your use or the next generation
  8. Passion: Follow your passions: celebrate, consider positive lifestyle changes, and give thoughtfully
    • If you plan to donate a portion of your winnings to charity, research organizations, or causes you are passionate about, consider creating a charitable foundation

Winning the lottery is a life-altering event. Careful planning, responsible financial management, and trusted communication are crucial to ensuring your long-term financial security, well-being, and happiness.

If you win the LOTTERY
If you win the LOTTERY — Photo and graphics by Yrtist.com

You can win the lottery but you need to buy the ticket first. And in life, you can get lucky but you need to work hard and be ready first.

Natalia Reyes Gaitán, a Colombian actress who starred in Terminator: Dark Fate

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-23-100