I Just Won the $1.5 Billion Powerball Prize…Now What?!
Take a deep breath… YOU have the golden ticket! Your thoughts immediately jump towards all your wildest dreams, and reality starts to kick in that money is no longer a hurdle to life experiences or the worldly goods you desire. If you can dream it up, you can do it! With such a substantial jackpot, it’s hard to fathom that someone could possibly blow through this type of fortune. Without a clear and concise plan, however… anything is possible!
So how do you protect yourself from becoming associated with the unwanted statistic that 70% of lottery winners eventually end up broke?
The task for growing and protecting your assets can be daunting, and there are 35 areas of wealth that need to be optimized in order to become an Accomplished, Depletion-Resistant Wealth Steward.
It starts with assembling a seasoned team of proven experts to confidently guide you through the dangers and opportunities that come with having significant wealth. One of the first things to get right is accurately quantifying the total payout received (net of taxes) from your winnings. This allows you to back into your ideal cash flow by targeting an appropriate spending limit, and reducing the chance for depleting your assets. As it turns out, there are different tax ramifications depending on which state you live in. Check out the following Bloomberg article, ‘The Best and Worst States for Powerball Winners’. Assuming the lump sum payout option, your net winnings can range anywhere from $470 million to $560 million. Simplistically, that’s a difference of $90 million or an annual distribution of $3.6 million less at $470 million. Not targeting appropriately can start you right back down the road from riches to rags!
Life-changing Liquidity Events have been our specialty at Janiczek Wealth Management for over 25 years. If you happen to play and win Powerball, our patented Strength Based Wealth Management system and Evidence Based Investing discipline can help you thrive with your good fortune while being unleashed from the complexities of wealth.