If you happen to hit the next Powerball jackpot, brace yourself for the life-changing decisions ahead of you.
With no one matching all six numbers drawn on Wednesday, the top prize has jumped to $373 million for Saturday night’s drawing. And while winning such a huge amount could open a world of possibility, formulating a detailed plan for when and how to claim it would be a key part of protecting your windfall, experts say.
“It’s exciting to win but, when it gets to numbers this big, you have to take a step back and realize the magnitude of it and plan for it,” said David Desmarais, CPA member of the AICPA Personal Financial Planning Executive Committee.
The jackpot has been climbing for more than two months through twice-weekly drawings. Whoever ends up winning will face options before even heading to lottery headquarters — some of which depend on where the ticket was purchased.
For example, you may be able to shield your identity, which experts say is important if it’s possible.
While just a handful of states allow you to claim anonymously, others may let you collect your windfall via a trust or other legal entity to keep your name out of the public eye. In other states, though, you might have no choice but to publicly reveal yourself.
You also have some leeway on the timing of the claim. You typically get three months to one year, depending on where the ticket was purchased. Generally speaking, the sooner you claim, the better — with a caveat.
“You’d want to get the money as soon as possible so you could put it to work for you,” said certified financial planner Jennifer Weber, vice president of financial planning at Weber Asset Management in Lake Success, New York.
“But the more important thing is to get a team of advisors behind you before you claim,” Weber said.
That team should consist of experienced professionals — including an attorney, CPA and financial advisor.
