So you have a lottery ticket worth $590.5 million. Now what?
If you won Saturday’s historic Powerball jackpot and you haven’t already done so, sign the ticket. Now.
Finished? Now call a lawyer — even before your spouse if things are a little shaky on that front. Next you’ll need a financial adviser, an accountant and a therapist.
More than 20 personal financial advisers agreed it’s crucial to assemble a team of advisers who can be trusted. Chances are the winner wasn’t mega-rich before, so it’s hard to know what to expect.
“You don’t need a financial planner immediately, because you don’t have the check in your hand. You need the lawyer before you need the financial planner because you’ve got to get all the necessary legal work done as quickly as possible,” said Stuart Goldberg, a Tallahassee-based estate and tax lawyer. That can include creating a trust fund, shoring up a will, getting advice on how best to claim the money so the government gets less of it and discussing who else might try to claim they’re entitled to a share. “If you collect the ticket while you’re married and your wife immediately files for divorce, does she get half?”
The winning ticket was bought at a Publix supermarket in Zephyrhills, a city of about 13,000 that’s 30 miles northeast of downtown Tampa. The winner has 60 days to claim the biggest jackpot in Powerball history if they choose a lump sum payment. Under Florida law, the person can’t remain anonymous.
No one had come forward to claim the prize Monday, and lottery officials said they were expecting the person to wait at least a few days.
Experts say the winner should thoroughly vet whoever’s on their team of advisers. And while the first call may be to an attorney or financial planner who’s a friend or relative, such acquaintances may not be best capable of dealing with that kind of money. They can, though, give advice on where to go next.
“For that kind of money, I would certainly want a well-known reputable group, not cousin Bernie who has a securities company down the road,” Goldberg said.
Ginger Snyder, vice president of investments for The 360 Wealth Management Group of Raymond James in Tampa, agreed that the lawyer should be the first hire and should be present for subsequent talks with a financial planner.
“Once everything is calmed down, as an adviser I would treat them just like any other client that I have. It’s a little different because obviously it’s sudden wealth,” Snyder said. “I would have to assume that this is going to be a lot more money than they have currently, so I would talk to them what their goals might be and what relationships are important to them.”
Many advisers said to avoid high-risk investments and opt for lower yielding but more secure investments. Even the most conservative investment should yield at least a 3 percent return. Considering the lump sum payment could be as high as $277.5 million after taxes, the winner could live off $8.3 million in interest per year without touching the winnings.
Several said a therapist should also be on the list of people to consult.
“You need a plan, and it should include some kind of counseling. You can have the best lawyers and everything, but it goes to people’s heads,” said Goldberg. “Lottery winners have ended up in divorce, bankruptcy, suicide because they don’t know what to do and how to handle the money.”
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