As the Powerball jackpot soars to $700 million, you may be daydreaming about what you would spend the money on if you won, but there are some things to keep in mind if you hold the lucky ticket.
First of all, know that you will not take home the entire $700 million.
You will owe taxes on your winnings, and if you take the money in a lump sum, you will only get a portion of the prize.
However, even if you only see half of the jackpot, there is still a lot of money that you should seek advice on how to manage.
“The first thing you should do when you get that significant amount of money is plan for the future and make sure you don’t make mistakes that could cost you money down the line,” said Senior Financial Adviser for the Monteverde Group Jason Haswell.
Haswell recommends first paying off any outstanding debts. Then you should consider the future and whether you want to invest or save for retirement.
“Most people that would come into that money would probably decide to quit working. Some people would not, but you want to make sure that you’re growing it properly with the proper amount of allocation over a diversified portfolio and the money is providing you with what you need down the line,” said Haswell.
Haswell also recommends planning for how you would like your wealth to be distributed when you are gone.
Of course, you will probably want to spend some money on some fun things like a trip or a new car, but just be careful not to spend too much at once.