Handling Lottery Winnings Effectively

Perhaps one of man's greatest dreams is to get a lot of money, pour them onto his bed, and dive in for a nice and dreamy swim into the land of papery goodness. This dream, of course, remains nothing more than that because achieving instant fortune is pretty difficult. However, these kinds of aspirations, along with getting financial worries out of the way, are the reasons why a lot of people choose to buy lottery tickets.

There are truly great success stories that have started with just a simple lottery ticket. One of which is a man named Brad Duke who won over $220 million and chose to get a team of financial advisers to pay off loans, mortgages, and start investing in different business ventures.

Another success story is about Les Robins, who got $111 million in 1993 and chose to pay off loans, donate to charities, and give to family members. Then, he founded Camp Winnegator, a day camp filled with different attractions for kids. Today, he's still in the camp living a simple but happy life.

Unfortunately, not all lottery winners get to have a happy ending. For example, Sharon Tirabassi won over $10 Million, but lost everything within 10 years. After enjoying her wealth and not keeping track of it, she is now a living reminder for everyone that even millions could run out, especially when squandered off in designer clothing, expensive cars, and exotic trips.

How to Protect Your Lottery Winnings

Planning is everything, especially when you've just won the jackpot prize in the lottery. The decisions you make after raking in millions of dollars are going to determine if your winnings will bring you great happiness or if you're just going to become another “from rags to riches and back again” story. So what should you do after hitting “the big one”? Here are some tips that you need to remember before you spend any money or make any commitments:

Get an unlisted phone number. You have no idea how big your family is until you come into a lot of money. Expect long lost relatives and those you've probably only met once during your childhood to suddenly come crawling out of the woodwork.

Take a leave of absence from your job. You need to focus on planning, because there are a lot of important decisions ahead of you. Planning is best done without distractions, and in this case, your job will only be a distraction.

Hire a reputable investment counselor. You need to establish a relationship with such professionals who can guide you with the day-to-day financial decisions you'll be making. They may be expensive, but their services will be invaluable in protecting and growing your newly acquired wealth.

Take a long hard look at what you've really achieved. Once that's done you'll be ready to map out your new life. Discuss your new objectives with your investment counselor and craft a financial plan that best accomplishes them.