postheadericon What You Should Do If You Win the Lottery

Almost everybody thinks about winning the lottery. With the astronomical figures that the numbers sometimes go up to, it’s practically impossible not to imagine getting a nine-figure windfall and all the things you could do with it. Even those who seldom play try to get in on the action then. However, actually winning doesn’t mean that you suddenly have a carefree existence, because you actually have to take care of the money if you want it to last long enough to take care of you.

Surprisingly, although it’s not hard to come up with what you would spend your winnings on, few people put a lot of thought into the idea of investing the money. The sad truth is that you can burn through money at a frightening pace if you aren’t careful. To avoid this, you have to be respectful of the situation you find yourself in. Thus, one of the first things you should do is take care of all of your existing financial obligations, including taxes. You shouldn’t even think about spending any of that green until that’s done.

After becoming debt-free (which is a wonderful feeling), you should consider investing. If you’re like a lot of people who come into large sums of money, you’ll probably get the urge to “fire” your boss (i.e., quit). But your job is how you actually earn money. Yes, you have your winnings, but that money needs to be producing income. In other words, you need to invest.

Here’s how we do that: Assume you’re earning $35,000 at the time you win. If you quit your job, your lottery funds need to produce at least that much every year. To replace that income, you might buy a million dollars worth of stock in Pfizer, the world’s largest pharmaceutical company. Pfizer’s dividend yield is 3.6%, so your million-dollar investment will pay you $36,000 annually in dividends. In short, you’ve put your winnings to work for you.

Looking back, with your financial obligations taken care of and some sound investments giving you a nice annual income, you can start having a little fun with your money. You can buy some of those things you’ve been wishing for, or take that exotic vacation you never thought you could afford. You can kick back and enjoy life, but remember to share the wealth with friends and family.

Looking to find out how to win Mega Millions, Powerball, and other lotteries, then visit our site and also find out what to do if you end up with the winning lottery numbers.

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