What to do with Powerball winnings - FOX5 Vegas - KVVU
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Two tickets matched the winning numbers in the record $587 million Powerball jackpot.
The winner has 60 days to choose either a 30-year annuity or a lump sum cash payment. Experts recommend taking the cash payment because it offers more flexibility and control. After taxes in Arizona, the winner would take home about $215 million.
"The first thing you should do is lock the doors, turn off the phones and tell as few people as possible," said Robert Davenport, a wealth consultant.
Davenport and his team at United Capital of Las Vegas helped former Lotto winners with their earnings. They suggest taking the money anonymously.
"Right off the bat, you will be inundated with everybody in the world wanting a piece or wanting something from you. 'I'm your best friend from high school, remember?'" said Erik Allison, a wealth advisor.
Then seek help by getting a team, preferably of people who have been through this before.
"Talk to an accountant and talk to a financial advisor," said Davenport. "There's a lot of pre-planning that can be done before you take receipt of those funds."
Next map out a plan and decide where to put the money.
"Just like an individual household would have a budget or a company would have a budget, a plan should be set up," said Davenport. "What would you like your lifestyle to be? What significance would you like to have on the world?"
They say don't put your money all in one bank. Trusts and money market funds offer more protection.
"Don't make emotional decisions," said Hickly. "Don't rush. Don't start writing checks as soon as you get the money deposited somewhere. That's the single biggest thing."
Another thing people often forget is to put their name on their ticket and sign it. The Powerball ticket is good for six months.
The jackpot could climb even higher. According to the Multi-State Lottery Association, tickets were selling at a rate of 130,000 a minute, which is six times the amount from a week ago.
Copyright 2012 KVVU (KVVU Broadcasting Corporation). All rights reserved.
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