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What To Do If You Win The Lottery | 12 Tips for Winners

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It’S off-center, you are live that was so loud. You don’t have anybody there, yet it doesn’t matter we’re shooting the video live. Okay, real life. You can here Reeves, hey guys, it’s Tasha and Joseph from One Big Happy and we are and we are working on trying to do more live streams. And so we decided to do a video on what you should do.

If you win the lottery, because Powerball is what now It’s like seven hundred million dollars, I think they’re still adjusting it. I don’t know what the final number is, but I read that they engineered the lottery to get bigger and bigger jackpots. So it’s pretty exciting. 700 million dollars. We could all use that yeah, but we actually don’t play the lottery and we have not bought the ticket, but just for fun.

I think we’ll go buy one after this, but generally that’s not like winning the lottery as a like retirement or financial strategy is not one that we really recommend. But so, but if you like doing that or if you just want to do it for fun and you happen to win the lottery, we thought we would provide some tips on what you should do. If you win the lottery. Okay, so number one don’t tell anyone. Do you not tell anyone that you won the lottery, because that will just start a whirlwind of everybody and their grandmother finding out that you have money as a matter of fact, let’s all go ahead and practice our silent screen ready one two three and that’s all You do right, you don’t want your neighbors to know you, don’t what your family to know. You don’t want your friends to know just zip.

That’S number one number two, like the first thing that you do after your silent scream. You want to sign the ticket, make a copy of it and then put the ticket in a safe deposit box at a bank, because you’ll need some time to figure out all the other things. And so you definitely want evidence that you won and also you don’t want anyone to find the ticket or have it damaged and don’t like walk around with it on you in your pocket, like, oh, my god and I like taking it out and staring at it. Like oh, my beautiful lottery ticket, no, no, no, no, no lottery winners get killed, guys like people straight up. Will home invade a lottery ticket winner to try to steal from them? Protect yourself, so be careful.

Okay, number three you’ll want to start hiring professionals, because you’ll have a lot of money. You’Ll need people to help, manage everything for you. So, first off you hire an attorney, not just any attorney, not your hometown! Oh this guy did my will. No, you find a large law firm that deals with high net worth individuals, preferably that deals specifically with lottery winners or the people that just get a lot of inheritance yeah I mean there’s nothing wrong, not to not hometown attorneys or anything like that, but practicing law, Like damn near any other profession, it requires a it takes time to develop a certain level of expertise, and so a lot of hometown attorneys.

They wouldn’t know what to do with someone that just won 100 or 200 million dollars like they wouldn’t really be able to be the best at advising you, okay. So next professional you get an accountant and then a financial adviser. Now the reason that you need all of these is that there are laws and ethical restrictions that they can’t all be in the same company and and so they also do different things, which is why three different professions exist, but you’ll need them all, and you want To make sure that it’s a fiduciary relationship, particularly with the financial advisor like the attorney, is going to be like they have to maintain your confidence, and you know, keep your best interest at heart, because it’s like a tenet of the profession same thing with accountants.

But financial advisors, depending on you, know the relationship you establish with them. They might be looking at it out for their best interests and so might directly to are like high fee investments and stuff that you don’t really want, so make sure that it’s a fiduciary relationship and that you interview several different companies, get referrals if at all possible And like speak to current clients, if at all possible and make sure that you are comfortable with the professionals that you choose, because they’re gon na be setting up things that you’re going to have to live with for for a long time, you’re gon na wan na You’Ll be in contact with them plenty in between collecting your winnings and then after that, okay, so the next thing is that you want to do is decide whether you want a lump sum or an annuity. So a lump sum is where you get like a whole bunch of money at once, but you don’t get the full jackpot.

You get only. You know a portion because you elected to take it in a lump sum, whereas the annuity will pay a certain amount for a certain number of years and in the end you may get more money. But you get less upfront and your attorney and your accountant and your financial planner would be able to help you with all three of those. I think that we would take the lump sum just because we think that our investing and would end up being better in the long run plus with annuity. You have to worry about what happens if you die before you collect it all, and I mean you need to take care about those kinds of things in your estate anyway. But this is one more thing I don’t want to deal with and I would be able to decide where it goes right up front.

So that’s what I think number five so have a plan to stay as anonymous as possible. Again people get killed guys. It really does happen, you just don’t even want to mess with it. So don’t change your behavior. Don’T quit your job just yet give yourself some time exactly. You don’t want anyone to give up any hint that you have won lottery, especially a jackpot yeah.

You definitely want to get all of your financial affairs in order and come up with your plan before you. You know unleash the beast, because there’s gon na be a flurry of people that what money from you want this or that from you, and you won’t be able to take it back once it’s out there. So take your time be silent for a while get your financial house in order and then start telling people, and also, hopefully you live in a state where you don’t where lottery winners can remain anonymous.

Not all states are like that. Our state is, thankfully, and your attorney can also help. You remain anonymous by the attorney dealing with the state lottery.

You might be able to take their winnings in a trust that kind of thing, and that is preferable. Anonymity is preferable because you just don’t even want to have to deal with that. If it does get out, I would say be prepared to hire some security or relocate for a little bit of time, at the very least so that people just aren’t, aren’t coming up to your house constantly all right number, six make sure you claim your winnings before The deadline, so I think it’s three months and sometimes in all of this planning, don’t you know, don’t do something dumb and okay forget to actually claim it yeah I mean, and there are a lot of things for you to put in place before you claim it.

So it’s not crazy that you might be kind of bumping up against this deadline, because you’ve got to find your three professionals that you’re comfortable with you want to set up a will before you claim it so that you have decided beforehand where all that money is Going before anyone finds out about it, there’s just a lot of stuff, so three months can fly by in no time so just be cognizant of the deadlines, and your attorney will help you with that too, because attorneys are all about getting things in before the deadline Number: seven: you want to have a short term financial plan before you just go and get your get your cash. You don’t want to put your money in a bank. That’S a terrible idea because bank accounts are only insured up to 250,000 and while banks failing is rare just a few years ago, it was happening quite often compared to now, and so you know we can have have some trouble or that, like your hometown bank, that You banked with forever, don’t take your money there.

They wouldn’t even know what to do with with hundreds of millions of dollars and hometown banks are small, like they’re, more likely to fail than some of the bigger banks right. So, just as generally, a good good idea is that you want to take your money to a brokerage account, and this is something of course, to discuss with those professionals you hired, but they will put you in something safe, short term, like some some US Treasuries. Until you figure out the long term where you want to invest that kind of thing, okay, so next thing is you want to pay any outstanding liabilities, particularly things that you are past due on, because the last thing you want to do is be a multi-millionaire.

Having a hundreds of millions of dollars and owing money to to people like particularly being behind on on your debt, payments like that, get your debt payment, at least current, and your financial advisor, might actually advise against completely paying off all of your liability. Just kind of depending what makes the most financial sense for you, but without a doubt they will say, come current on your debts. Yeah next, don’t spend any of the money just willy-nilly.

What you want to have is a plan to spend just the returns. So just what your investments make yeah. So the idea is that you have your money working for you, you’re, not spending any of the principle. Like Joseph said, you’re living off of the interest, because then you never have to touch that that main body of money. It will always be there because so many lottery winners, they end up broke just a couple years later and it’s because they spend down into the principal and then they run out of money yeah. So you wouldn’t be able to make a difference for your family for future generations, and so you can’t do it by spending just as much as possible, and so I’m looking at a few of the comment and we will get to questions after we finish up our List, Thank You.

Cynthia. As Cynthia said, I looked really cute and youthful. Thank you.

I’M going to be doing a makeup tutorial very soon because several people have asked for it so stay tuned for that. But okay, finish the things. Okay, so of course, when you win a whole bunch of money, one of the first things that you’re gon na want to do is give to your favorite charities, give give back, and so one thing about that. Don’T give any small charity too much money at one time because you can add they don’t know how to deal with that money either, and so this is something that you’ll want to discuss with with your attorney and then also bigger organizations, bigger charitable charitable organizations.

That’S that’s where large donations can go smaller ones. If you give them five million dollars and their normal budget is a hundred thousand, you are just going to inundate them yeah. They may not manage the money. Well, yeah, it’s not to say, don’t, donate them, but don’t donate to them, but maybe donate to them in small chunks or put the five million in a trust that slowly gives them chunks of money over time so that they can grow into managing that endowment responsibly. Right – and that goes the same for friends and family, if you decide that you do want to gift some of the money, don’t give too much too quickly, yeah, because no one is instantly great at managing finances just because they have a lot of money. Yeah, which brings us to number 11, which is protect your money from others.

Obviously, when you win you’re the lottery and people find out, you win the lottery they’re going to ask you for money, and you know. Of course, you are going to want to be generous with your friends and your family, the people that have been there with you through thick and thin and we’re definitely not advising not doing that, because I know I would totally do that for my friends and family, But that’s sometimes you’re gon na have to say no because some people don’t know like don’t have a limit, you know or will get as much as they can. And so, if you don’t learn to say no, then suddenly you won’t have any money. So you don’t want to do that. Also part of that, it is probably going to be in your best interest to actually move from where you currently live and the reason being people people will ultimately figure out that, oh, you suddenly came into a whole bunch of money. It’S probably going to happen.

If you live in a small town and all of a sudden you’re spending a lot of money, they’re gon na notice – and so it’s best to move away, it’s before you buy that Lamborghini and yeah, absolutely and so you’re, probably gon na want to acquire assets in A trust or know a LLC’s name, and so you want to kind of blend in around other people that maybe have money. So you don’t stick out like a sore thumb. If you know anybody coming over to your house and oh they slip on some ice. Oh, they tripped on their steps.

Yes, basically scamming, you just random people, scamming you out of your money, okay and last one. You want to protect your money from you, so there’s a reason that you hire all these professionals because, like I said, we are not instantly great at handling money just because we have a hundred million dollars. In fact, most people are terrible at handling money, and so you see how many oh NBA stars and football players have hundreds of millions of dollars over their career and end up bankrupt. Well, because they’re not really great at handling money, and and it’s you know, I don’t know it’s just really different right when you the way that you manage money when you have normal people. Money is very different from when you have like enough money to qualify as your own bank right.

So it’s it’s good to get people who do that type of work day in and day out that can help shield you. You know your tax liability help your maximize! Your returns, while hopefully also minimizing your fees and you know, can just kind of say: hey, maybe you don’t want to do that when they see you doing something that they know is not in your best interest versus people who will just enable you right and won’t Tell you no, when they should tell you no, because they want you to keep doing things for them. That’S one of the reasons that an annuity isn’t necessarily bad, because you can’t spend it all. You know at least some of it’s going to be coming over a period of time, so that’s one thing to consider also locking different amounts away and in the trust, making making cash harder to access.

You know you wouldn’t have a million dollars in your bank account. Maybe only have ten thousand dollars or whatever, so you just can’t accidentally get frivolous those kinds of things. So this is not actually on our list, but I’m gon na throw it on there to say: okay, so now you’re a multi-millionaire and you have tons of money and tons of time. You have time to learn all about how to manage your money. I mean I am all about: yes hire professionals, but you ask them why they’re doing what they’re doing so that you understand what’s going on, because at the end of the day, the only person that’s really responsible for your money is going to be you and you Know so we know plenty of people will not know, but you hear of plenty of people who are swindled out of all kinds of money by their accountant or their lawyer.

So you just want to make sure that you are aware constantly aware of the state of your finances and what it should be, so that if something is looking a little odd, you can catch it. So that’s good! So do it, let’s do comments. What do we have?

Let’S see, so we have wait. Let’S say hi to everyone too, everyone who commented so we have that valine hi hi, Cynthia, Cynthia um muff paid great advice. I just got a lotto ticket last night and I can’t wait to check the numbers.

Yeah, I think we might do it too, just for fun just for fun, but we have we, I mean almost never play so Wow. So when should you get a lawyer and how much would a lawyer cost to represent you, so I would say immediately. That’S probably third right: you wan na, don’t tell anyone. That’S number one um make a copy of your ticket sign it sign it and make a copy of it and hide it away in a safe deposit box at a bank and then number three is getting an attorney, so you should be able to do all of That, basically, the next day to start finding an attorney and how much will an attorney cost so a partner at a big law firm can easily go for a thousand dollars an hour. Yeah, it’s gon na be expensive and, although you might not have all that cash up front, I’m sure if you show them your winning lottery ticket they’ll work, something out yeah. Definitely the the photocopy copy it hi.

Muhammad. Are we reading the comments we are now hey. Yasmine Tara. Thank You Tara. She says we are so inspiring great advice, she’s totally getting her husband on board. Well, so we’re not advocating that you guys go out and and play the lotto.

We’Re just say that if you do happen to go and play, and if you do win that these are good things tips to follow, yeah in reality, your expected return. The amount, the jury that you expect from playing the lottery is virtually none. The odds are just terrible, so um, so some samaya asks should you buy lotto ticket and what’s your what’s your, what limit and what’s our advice for spending on you know basically gambling? Okay, so in terms of investment, is it a good idea to play? No, not it’s a terrible idea to play.

You lose your money yeah, but we do a lot of things that are like terrible like who needs to eat a Twinkie but – and I haven’t eaten the Twinkie in a long time, but I’m not opposed to eating a Twinkie, even though it is a terrible idea. Sometimes we do things small things that are terrible ideas, so the way to view the lottery like many things is, you are paying some amount for entertainment. Yes, just like gambling, it is a purely entertainment, and so what you want to do is figure out how much entertainment you’re gon na get.

Is this gonna be exciting for 10 hours, or is this gon na be exciting for about 10 minutes and then decide how much you would spend on 10 minutes of fun if it’s 10 dollars? Okay, more than I planned on yeah? But let’s say you get excited for an hour, well yeah and I would say it’s also a matter of if you feel like suddenly you’re spending way too much time and too much money investing in the idea of possibly maybe winning the lottery.

Then you might need to cut back right, because some of these types of activities can be really addictive. Like that anticipation, the highs and the lows – and so you just want to be cautious – that it doesn’t that it moves, doesn’t move from fun to obsession so for us personally, we don’t ever play the lottery like almost never. I think it’s been years since the last time we played the lottery so in Philadelphia. I haven’t lived in Philadelphia, two and a half yeah, so I was you know with the new office and they did a pool, and so for a few months I joined the pool and so fun together when no yes, but it was fun, it was about camaraderie. Getting into the great okay, so a video on taxes, we might do something on taxes, probably not specifically watering winning taxes, but yeah taxes really really complicated.

So we can do like basic tax stuff yeah, but we’re, but we’re not gon na really get into the specific difficult scenario because yeah, we can say generally how personal income taxes work in the United States – okay, so Lala 324 SS. But you pay. Okay, all your taxes up front with the winnings. So unfortunately, that’s not entirely true.

So when you win, some of the taxes are withheld at a certain rate, but not all the taxes that you might need to worry about, so that, because there are so many different levels of taxes, your state taxes and your federal taxes, local taxes. There is a really good chance that you’re gon na have to pay ten fifteen percent more than they automatically withhold, and so that’s why you get an attorney. And yes, it’s actually professional. That knows. Oh, no, don’t definitely don’t spend that money.

We need it in cash because you’re about to have a gigantic bill, and so you’re gonna have to pay us some estimated tax to cover that and they’ll help you with that. But it’s not, but they don’t take care of you all upfront by just withholding the proper amount. That’D be nice, though, when you give family money, can you make a profit off of it and get money back at the end of the year?

Okay, so you could? That’S making a loan to you yeah if it’s a gift, then no, because that’s not like donating to a non-profit which you can use to reduce your tax liability. It is just a gift to a family member and your family member, depending on their relationship to you and the size of your gift.

It may have to pay taxes on your gift, so yeah, so that’s definitely true, also, if you’re making a loan. If you want to make loans to your family members, which I say it’s always a terrible idea, you just consider it a gift and let it go, but always give it and ready. So everybody knows how they’re gon na pay it back.

Well, that probably just let that go, it’s a gift! It’S easier! That way if you are hurt feeling than the end yeah next, Hey, so pale Ella and then Rudy on I’m! So sorry, if I’m mispronouncing anyone’s name Amy hi thanks for watching – and we are happy to provide this – if I see that just a lot of fun and Deborah hi, she doesn’t play the lotto um.

But these are great tips she can use if she gets a large inheritance from loved ones. So that’s true yeah. You probably well you’re, not gon na publish publicity from that, but you’re, probably unless you have a famous rose yes, but you also won’t be able to keep it secret more likely than not because the will will be available to all of your family members. So they’ll know right away and that’ll be in public records too um. But you know some of this stuff so like if you just get a regular sized inheritance, so I would say like a hundred thousand dollars or less your local attorney should be able to help. You with that, and it’s a local at state’s attorney – that’s that’s normal, so don’t feel like you need to go, get an attorney at a big fancy law firm and pay a thousand dollars an hour when you have a smaller inheritance.

That’S absolutely true! Yeah! How can they open a YouTube account? What do you you know honestly? I have no idea. It has been so long since we created this channel because, like oh do you know I do not.

Okay, like three years ago, when I cut on my hair off, I just randomly made a video and stuck it up on YouTube, and even I think the way that you make a YouTube account is different. Now, because back then, it wasn’t even linked to Google and write to your Google account the way it is now, but I’m sure there are tons of tutorials out there tons of videos out there even on YouTube people like how to start a YouTube channel. So that’s what I would recommend and if you guys are interested, we can do a video on how, like our the process, that we go through to make videos the things that we use, yeah yeah, maybe we’ll do that what they says that we look great. Thank you. Thank you.

I combed my hair. Just for you guys, I’m a hair was in a bun. I wanted.

I can’t show up with my hair in a bun again, so I’ve spent like 30 minutes curling, my hair, and so I hope you guys like it. Then Sofia has: how do you increase your chances of winning? So in terms of I mean technically, if it’s buying more tickets, but in reality you were going to lose, don’t think that you’re actually going to win it.

It’S just recommend that you try to increase your chances of winning. We can only say for you to play on the occasion for fun. I mean there is no. There is no guaranteed way to win the lottery. Everyone will see an article that will tell you well.

This is how you definitely can win the lottery, because when the jackpots get so high well technically, you can buy all the combinations. But if there’s another winner, you have to split it with them. So there’s no guarantee that you’ll ever get all of the money, so there’s no way to win the lottery guaranteed, there’s no way to really significantly increase your chances of winning money so just a ticket. Maybe a couple yeah you’d be better off spending that money in those years like study like going back to school and finding a job, that’s gon na pay, you more money over the course of your lifetime. Absolutely good point: okay, oh budgeting with a college student income. So what I would say there, if you’re, trying to just be as cheap as possible, because we don’t know what student loan programs are gon na, be you want to take out a few loans as you possibly can I mean until in terms of income side, look For a part-time work, work for look for work-study look for both worked our way through college, and we still, we came out with a small, relatively small amount of debt from undergrad.

I had twenty thousand now keep in mind that you know I had a child, so that made my. I could only get my living expenses so low and I came out with twenty thousand and Joseph you came out what I think I had fifteen yeah and in reality I should have had fifteen. I was working enough that I I could have paid more, and so so I should not have had 15. Yes, so I would say one of the things that I used to do because you only get your your funds from this hole twice a year. So I would put all of those funds in a separate account and then I would have a monthly budget that I would just transfer over only the amount for that month so that I didn’t run the risk of spending money and running out of money.

At the end of the semester, alternatively, you don’t have to have your maximum aid package just burst to you at one time, so like it’s really trying to keep, keep it low on the loans. But you know you’re gon na have some well, you get your reward amount and then only take the smallest or the smallest amount that you can live on. They’Re not gon na give you a monthly disbursement but periodically, but but then trying to leave some of it understand then, and that’s not something you don’t have to pay back yeah and then so.

Some other practical tips haven’t have a whole bunch of roommates right cook. At home as much as possible because I just found – I always lived off campus, obviously because I had a child, but I considered getting a meal plan because I was at school for so many hours of the day. But it just is so much more expensive to buy into the school’s meal plan than to make your own food. If you live in a place that has a kitchen now, if you live in the dorms and in my opinion dorms are what I have found is that dorms are usually more expensive than living out off-campus with roommates.

So if you have a kitchen, make your own food and then lastly pregame at home, okay, so in terms of giving anonymously to family or church. So if you, if you have a an attorney that you’re working with or even a financial adviser, I mean they could they can definitely send anonymous donations yeah that you can still get credit for on your extra turns on your filing and then it doesn’t have to Have your name attached to it, they can handle. All of that now, I mean say same even for your family as long as they don’t know who your attorney is because otherwise they’re probably gon na put that together yeah.

I guess if you didn’t want to use an attorney which we recommend that you do, you probably go, get a money order right and then just make it out to the church and just mail it to the church. And so then don’t have a certified check. Might not wouldn’t have your name on it, it would just be drawn to your financial institution. So that’s another way to be another house. They have a mailing address, make sure they open their mouth yeah.

I think that’ll or send it certified mail. So you know someone has to sign for it. Someone definitely received it.

So that’s that’s another option or it’s like what we do. They’Re trying to get people lemony we’re just gon na leave it around the house he’s talking about the little girl that comes and watches taxi. Sometimes she sometimes doesn’t want to take money. Okay, all right! Next time, we’re in sidetracked.

Okay, you want to open a lottery business, so that’s probably gon na be illegal. The states runs along Liam, but if you, if you happen to gain a casino license, key no, I think, is basically the lottery but with much lower winnings. I think that’s where you pick numbers right, so you know, but I bike to you because those people seem rich yeah, most states, don’t let you gamble. You know open up gambling spots, although we got realizes yeah from what I understand.

It’S this huge hassle. Yeah. Oh wait: Amy says she played the pic three and four for ten years before her numbers were called what you scribbling.

Well, I’m gon na keep leaning over make sure sorry. He says I’m encroaching on okay, so yeah, so I’m all for you know. Oh you’ve never bought tickets. You just kind of picked three minutes, that’s all I understand I like that. So Amy would just pick the numbers but not actually buy the tickets and just wait and see if her numbers came up, but I have so that’s fun, but I have to say man would I be sad if I picked this pot and then didn’t win it I’D be devastated well, but I’ll pick three, you pick four. I mean, I guess, even if she won the jackpot, wouldn’t be like a 700 million dollar jackpot.

I don’t know that I could ever get over that. It’S like a big fish story that just won’t quit. Well, all right guys, we are going to sign off now.

Thank you so much for watching and joining us and hopefully, if you ever win the lottery, you will be prepared and also send us down, because you know we didn’t wait for you here. We did this for you and something you have to give us money so stay tuned. Coming up this week we have a an Alexis vlog, which we like doing vlogs to just kind of show more of what our regular life looks like. So we hope you guys enjoy watching them and we are working on a massive video, just kind of going through Dave, Ramsey’s baby steps and showing where you would end up financially by what we would end up financially by following Dave. Ramsey’S baby steps versus following our kinda plan so stay tuned for that all right, thanks for watching hi, guys all right.