💸 What to Do If You Win the Lottery: 5 Smart Steps to Protect Your Fortune

By Jerry Williams, MS-PFP

The Powerball jackpot is sitting at $1 billion — and like millions of others, I couldn’t help but imagine: what if I actually won?

Would I take the lump sum? Annuity? Disappear to a beach in Portugal with sunglasses and a floppy hat?

As fun as the daydreaming is, there are very real steps financial and legal experts recommend if lightning actually strikes. The American College of Trust and Estate Counsel (ACTEC) recently laid out some practical guidance for lottery winners — and it’s worth looking at, even if just for fun (or planning ahead 😉).

📝 Step 1: Verify and Secure Your Ticket

Before you start shopping for yachts, make sure the ticket is really a winner.

• Sign it immediately (ownership is everything).

• Make copies for your records.

• Store it safely in a fireproof safe or a bank safety deposit box.

👩‍⚖️ Step 2: Assemble Your Professional Team

Don’t try to go it alone. ACTEC recommends building a protective circle around you from day one:

• Lawyer – for trusts, estate planning, and privacy.

• CPA – for taxes (a huge piece of your winnings).

• Financial Planner/Wealth Advisor – to design a sustainable plan.

• Communications Advisor (optional) – if media attention is intense.

🤫 Step 3: Stay Private and Low-Key

Tempted to scream from the rooftops? Experts say silence is your friend.

• Limit who you tell — even family.

• Stay off social media.

• Consider changing your phone number.

• In some states, you can even form a trust or lottery club so the prize can be claimed under that name instead of your own.

🏦 Step 4: Lump Sum vs. Annuity

The big decision. Using today’s jackpot as an example:

• Lump Sum: $453.1M cash option (≈ $285M after federal tax). With smart investing, you could live on nearly $1M/month forever.

• Annuity: $1B spread over 30 years (≈ $630M after taxes). Guaranteed growing payments, but less flexibility.

Sample Annuity Payout Highlights

👉 My take? Lump sum gives you control and growth potential — if you invest wisely. But if you’re prone to overspending, the annuity provides built-in discipline.

❤️ Step 5: Do Good With It

Nearly every expert stresses philanthropy. Why? Because giving back is one of the most rewarding parts of sudden wealth — and it shapes your legacy.

That might mean:

• Endowing a scholarship.

• Supporting LGBTQ+ causes.

• Creating a local community foundation.

Money can change your life — but it can also change countless others.

📊 Sample Monthly Allocation (from $951K/month safe withdrawal)

• Lifestyle & Living – 25% ($238,000)

• Reinvestment – 40% ($380,000)

• Philanthropy/Giving – 15% ($143,000)

• Family/Legacy – 10% ($95,000)

• Reserves/Safety – 10% ($95,000)

🌟 Final Thought

Winning the lottery is life-altering, but it doesn’t have to be overwhelming if you take it step by step. Before the Lucchese boots and Mizutani shears 😏, the best thing you can buy is time and good advice.

So… what would you do first if you won a billion dollars?

👉 For more practical money talk (without the fluff), subscribe to the Pink Money Podcast — where we break down big money topics from a gay perspective.