After 41 draws with no winners, the Powerball lottery jackpot rose to $1 billion, making it the seventh-largest in lottery history.
If all six numbers don’t match, you still win the $1 million and $50,000 smaller prizes.
If you somehow beat the odds and win a large amount of money, what happens next can be just as important as the win itself. That’s because decisions you make in the first few days can result in you losing or mismanaging your prize.
Here are five common mistakes experts say you should avoid from the moment you get your ticket.
1. Give the unsigned ticket to the clerk
According to the South Carolina Education Lottery, one of the state lotteries that operates Powerball, prizes can only be claimed by “the person in physical possession of the winning ticket” until the lottery ticket is signed.
Participating state lotteries typically instruct players to use verification tools such as self-check terminals, mobile app scanners, and official lottery websites rather than relying on store staff. One of the reasons this guidance exists is because a store clerk was caught stealing a winning ticket.
It’s a good idea to sign your ticket in ink immediately to prevent fraud, the state lottery advises. According to the South Carolina Education Lottery, it doesn’t hurt to have a signed copy or photo of your ticket, as it will help if you lose or misplace your ticket.
2. If you don’t keep your tickets in a safe place
Now that you’ve signed your ticket, where do you put it? George Gagliardi, a certified financial planner in Lexington, Mass., says winning tickets act like cash, so you don’t want them in your pocket, wallet, or on your desk at home.
“Holding a winning ticket in your hand before you claim it is like walking down the street with $100 million in your wallet,” he says.
Official tickets require a secure location. The general recommendation is to store it in a bank safe deposit box or a personal fireproof safe or lockbox as soon as possible.
3. Tell everyone about your victory
Announcing a large lottery win can lead to extortion money, fraud and unwanted attention, Gagliardi said. It’s often safer to keep news within a small circle of trusted family members.
Some state lotteries require winners to disclose their prizes when they claim them, so it may be helpful to consult a financial advisor, attorney or accountant before coming forward, State Farm advises.
We’ll guide you through your payment options and, in some states, help you set up a trust where you can claim your prize anonymously.
4. Hurry up and claim your prize
Depending on the state, winners often have between 90 days and a year to claim their prize.
If you rush to claim it, you may not be able to build the team of advisors you need to manage your vast wealth. Without a lawyer, accountant, or financial advisor experienced with large investments, you risk making costly decisions about taxes, investments, and spending, according to a State Farm report.
5. Making payment decisions too quickly
Powerball winners must choose between two payment options. One option is a 30-year annuity equal to the full listed jackpot amount, or a lump sum cash payment equal to approximately half of the advertised prize. For a $1 billion jackpot, the pension would pay out about $33.3 million annually, according to USAMega.com.
Each option involves tradeoffs. Annuities offer guaranteed installments with a larger total payout over time, while cash options give you a large amount of money right away that you can invest right away.
Your age, estate planning needs, and comfort with investment risk will all determine which payment structure makes the most sense. Consult with a trusted financial professional who can help you make decisions based on your personal financial situation.
It can also be helpful to slow down before making a choice, because “you’ll be in an emotional state for a while, and you want to make decisions logically rather than emotionally,” says John Lloyd, a certified financial planner in Texas.
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