Simon Lever Learning Community Presents: The Financial Implications of Winning the Powerball
Like many Americans, you’re probably dreaming of winning the Powerball drawing. If you do win, you will have beaten incredible odds: the chances are one in 292,000,000. To put that in perspective, you have a better chance of getting hit by lightning (that’s one in 960,000).
If you are that one in 292 million, take a deep breath and give us a call.
The first thing we’ll do is put together a great team for you. We’ll include a stellar financial planner, a tax attorney, and a knowledgeable and innovative tax advisor who can guide you through the process of minimizing taxes as you receive and invest your winnings and think about what you want to leave to your heirs and family.
Next, we’ll discuss whether it’s better to take the annuity or the lump sum payment. To decide this, it’s really a matter of what works best for you. Most financial experts will recommend taking the lump sum as long as you know how to manage and invest it properly. However, you’re probably not accustomed yet to being a multi-millionaire, and you may not be an experienced investor. Perhaps you have a tendency to overspend, or maybe you have some anxiety about the “lottery curse” and fending off the endless hordes of relatives, acquaintances and total strangers who want to share freely in your good fortune. Don’t worry. Your team will thoroughly discuss the options with you and make sure you have the information you need to make the best choice for you and your family.
As you probably suspect, there are quite a few intricate tax considerations, one of which is the doctrine of constructive receipt. Prepare yourself now, because regardless of how you take your winnings, Uncle Sam will take his share before you even see a dime. It’s also safe to assume the payout will change your tax bracket and you’ll be subject to new taxes and rates you may not have known existed.
Your team will be able to inform you about all the nuances of tax law. We’ll make sure you are aware of all options and possibilities. For instance, you might want to become a philanthropist and establish an eponymous charitable trust to promote the cause that is nearest and dearest to your heart. We can help you do that. Or maybe, you want to set up a trust that makes it difficult for people coming out of the woodwork to find you. We can help with that too.
Meanwhile, Back on Earth …
Playing the Powerball lottery is fun, but realistically, you probably won’t win. Not with odds that can be measured in astronomical units. While it’s exciting to consider the possibilities, why only think about hypothetical scenarios? You may not be a multimillionaire today, but you still have the same goal of financial freedom and the desire to pass along your wealth to your children and grandchildren.
You don’t have to be a lottery winner to have the best financial team in your corner. Contact us today, and let’s discuss where you are and where you’d like to be. If you win the Powerball tonight, fantastic. If not, you can rest assured that your financial future is not left to chance.