How to Manage a Lottery Jackpot

A lottery jackpot can be a big life changer. But many people don’t realize just how much work it’s going to take to manage the money if they win a large amount. Before you do anything rash, financial and investment experts say it’s a good idea to get your family together and work with a qualified finance professional to hammer out a wealth management plan. This should include determining how you’ll receive the money, when, and how much taxes you will owe.

Some people try to increase their odds of winning the lottery by buying a lot of tickets or using a number-picking strategy. But a recent Forbes article quotes lottery expert Joe Lustig as saying that these strategies don’t improve your chances of hitting the jackpot by any significant amount. The truth is, your odds of winning the lottery depend on how many numbers you pick, where they are in the set of available options, and whether you play a single-number game or one with multiple options, Lustig says.

If you do happen to hit the lottery jackpot, State Farm recommends that you make several copies of your ticket and secure it in a safe place. Then, before telling anyone else, make a plan for how you’ll manage the money. This includes deciding how you’ll split it with your family and determining whether you want to take the lump sum payout or annuity payments that pay out over decades.