What Should a Lottery Winner Do With Their Newfound Wealth?

lottery winner

A lottery winner is a person who has won the lottery, which is a game of chance in which numbers are drawn at random to win a prize. The odds of winning vary depending on the type of lottery and the number of tickets sold. If the expected utility of monetary and non-monetary benefits is high enough for an individual, purchasing a lottery ticket can be a rational decision.

Most experts recommend that people who have won the lottery, or anyone that suddenly comes into a large amount of money, put together a team of financial experts. They should include an attorney, accountant and a financial adviser to help them structure their claim and manage their new wealth. These experts will also be able to answer any questions that the winner might have and prevent them from becoming the victim of fraud or mismanagement.

The first thing that any lottery winner should do is invest their winnings in safe, secure investments such as real estate, stocks and mutual funds. They should also make sure to properly manage their tax situation and consider their options for receiving the prize in lump sum or over time.

Lottery winners that fail to plan for their newfound riches usually blow through their winnings quickly. Many of them spend excessively and often get sucked into bad investment schemes. Some even end up broke after only a few years of wealth. The sad reality is that this is true of almost all lottery winners and a large percentage of professional athletes/musicians as well.