SAN FRANCISCO (KRON) — Just two days to go until the numbers are picked for the world’s largest Powerball jackpot–ever!
The prize is now up to $1.4 billion. It is fun to dream of hitting it big, maybe you would buy a new house, a fancy car, or maybe a yacht. But if you actually win, what should you do with all this newfound cash?
So, KRON went to go get some advice.
The tickets cannot be printed fast enough right now, and the lines are long at convenience stores.
People want to hit the jackpot, and winning $1.4 billion is life-changing cash.
“Money that big, if you will, is funny money,” financial advisor Kathryn Amenta said.
Amenta said the first thing the winner should do is sign the winning ticket, make copies, and put it somewhere safe.
“I would definitely change my phone number, and I would go in my house for awhile and lock the doors,” she said.
Once you have processed your possible rags to riches transformation, you should create a plan with a financial team.
“Hopefully, there is someone that you trust and know,” Amenta said.
Studies show one-third of lotto winners file for bankruptcy.
And handing out large lump sums of cash is one of the fastest ways to lose all those newfound millions.
“Every, maybe, fifth cousin eight times removed comes to you and has some pressing financial need,” Amenta said.
While it is fine to help Aunt Betty and Uncle Robert, you should still set a budget and donate to charity to help with taxes because your chances of winning this big again are really small.
“What is it we really want to achieve in our lives? How can this money better our lives?” Amenta said.
There is a debate on whether to take the 30 payments or the lump sum. That depends on your financial plan.
And the lump some now is a cool $868 million.
The drawing is Wednesday night, and the jackpot amount is likely to grow by then.