Many people who play the lottery daydream about what they would do with their winnings. Not only do they think about it but they also plan what they are going to do with the money. Many people only think about what the money can do for them to get them out of debt and have them living better but they never think about problems that it will bring.
There has been follow-up done on people who win the lottery and the statistics show that within two years of winning the jackpot, 80% of them are worse off financially than they were before they won the lotto. Why? Because they didn't think about saving any money and instead bought everything that they ever wanted.
Another thing people don't think about, are the many taxes that you have to pay out of your winnings. There are state taxes as well as there are federal taxes that can come up to as much as 50% of your winnings. You will receive even less if you opt to take a lump sum instead of annuity payments for your winnings.
It would be wise to get a financial team consisting of an accountant, a financial advisor as well as a lawyer to ensure that you protect your rights. When spending your money it would be best to invest in things that will appreciate over the years such as real estate or start a viable business. Also put some in an account that will make you interest or do some savings bonds or certificates of deposit.
There has been follow-up done on people who win the lottery and the statistics show that within two years of winning the jackpot, 80% of them are worse off financially than they were before they won the lotto. Why? Because they didn't think about saving any money and instead bought everything that they ever wanted.
Another thing people don't think about, are the many taxes that you have to pay out of your winnings. There are state taxes as well as there are federal taxes that can come up to as much as 50% of your winnings. You will receive even less if you opt to take a lump sum instead of annuity payments for your winnings.
It would be wise to get a financial team consisting of an accountant, a financial advisor as well as a lawyer to ensure that you protect your rights. When spending your money it would be best to invest in things that will appreciate over the years such as real estate or start a viable business. Also put some in an account that will make you interest or do some savings bonds or certificates of deposit.
