With the Powerball jackpot rising to $748 million, financial advisors say the biggest decisions begin after the drawing, not before it. Experts often stress that a potential winner should treat the ticket like a major financial asset from the moment they realize it may be a winner.
A common first step is securing the ticket and confirming the rules for claiming the prize. Advisors also typically recommend slowing down, avoiding impulsive public moves and taking time to understand whether a lump-sum payout or annuity makes more sense for the winner's situation.
Tax planning is another major part of the conversation. A jackpot of this size can bring complicated federal and state tax questions, so financial professionals usually urge winners to build a team that may include an attorney, accountant and financial advisor before making large spending or investment decisions.
The broader message from advisors is that planning for a life-changing windfall matters as much as buying the $2 ticket. For anyone dreaming about a Powerball win, the smartest move may be having a basic plan in place before the numbers are drawn.
