Powerball's projected jackpot is $875 million — the third-highest ever – ahead of Saturday's draw. While most ticket holders daydream about defying the odds and winning the prize, many don't know what steps they should take immediately after winning all that money.
If you're lucky enough to beat the 1 in 292.2 million odds, consider the following tips on what you should do before claiming the jackpot prize, as commonly recommended by certified financial planners.
1. Prove the ticket is yours
As soon as the shock of winning nearly a billion dollars wears off, take a selfie or video of yourself with the winning ticket, with the numbers clearly visible in the photo.
Smartphone image files typically include metadata like the date and time the photo was taken, which will help you if there's a legal dispute about ownership of the ticket.
2. Keep quiet about your good news
As tempted as you might be, don't disclose your winnings on on social media or with people in general, except for close family members. Until you claim the prize, the ticket will be worth hundreds of millions of dollars, which will make you a target for scammers.
Advertising your good fortune could also bring you unwanted attention from friends and relatives while you're still figuring out what to do with the prize.
"Having worked with several lottery winners in my career, the long-lost relatives, friends, and sob stories that come out of the woodwork when your name and likeness are splashed over the news is astounding," says Amy Hubble, a CFP in Oklahoma City. "Not to mention the risk to your family's personal safety."
There are some states that allow you to remain anonymous even after you claim the prize, but most states will disclose your name when the prize is awarded. In that case, you'll want to work out a plan for what you'll do with the money before the ticket is claimed.
3. Keep the ticket secure
Keep your winning ticket in a secure location, preferably in a safety deposit box at your bank, or in a personal safe. Short of that, consider a locked desk drawer or filing cabinet.
Make sure it's not placed somewhere where it might accidentally be lost or thrown out, like on a messy countertop, says Hubble.
4. Consult with a financial planner
Depending on where you live, you will have 90 days or more to claim your prize. That should give you enough time to consult a financial planner who can help you figure out what kind of payout you want, based on your financial goals.
It's no small decision: For Powerball, you can choose an upfront cash lump sum that's worth about half the listed jackpot amount, or you can opt for the full jackpot that's paid out as an annuity over 30 years.
Many winners choose the upfront amount since it can be reinvested right away. Others might choose the annuity for the financial security of getting the full amount over time. By discussing these options with a financial planner, you'll be able to choose the payout that best suits for your needs.
Remember there are tax implications and wealth management choices you'll need to consider. To help sort all that out, a financial planner can put you in touch with other professionals, such as a certified public accountant, investment manager, insurance agent or a lawyer to review contracts.
Powerball's next draw is Saturday night at 10:59 p.m. ET. Relatedly, the Mega Millions jackpot prize is $560 million, and the next draw will be Friday at 11 p.m. ET.
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