If you defy the odds and win Saturday night’s massive Powerball jackpot—now at $1.8 billion—what you do next could make or break your financial future.
This jackpot is the second-largest in U.S. lottery history, just behind the $2 billion prize won in California in 2022. But as exciting as the numbers are, experts warn that sudden wealth can quickly disappear without a solid plan.
“The biggest fear that pretty much all sudden wealth recipients have, and especially lottery winners, is that they’re going to screw it up,” said Robert Pagliarini, author of The Sudden Wealth Solution.
Pagliarini, who has spent over 20 years advising lottery winners and other recipients of sudden wealth, says the goal is to turn a one-time windfall into long-term financial security.
Step One: Secure the Ticket
Before anything else, protect your winning ticket. It’s a bearer instrument, meaning whoever holds it can claim the money.
Pagliarini suggests:
-
Sign the ticket immediately.
-
Take photos and videos with it.
-
Store it in a secure, waterproof, fireproof place.
Stay Quiet—and Build a Team
Avoid telling anyone, if possible. Once word gets out, you may be overwhelmed with requests from friends, family, and strangers.
Experts recommend:
-
Keeping your win private for as long as possible.
-
Hiring an attorney, a tax advisor, and a financial planner before claiming the prize.
-
Preparing a media strategy—because attention is inevitable.
“There’s going to be helicopters flying overhead… That’s not good,” Pagliarini said. “In no circumstances is that a good thing.”
Lump Sum or Annuity?
If you win, you’ll face a major decision: take a lump-sum payment or annual installments over 29 years.
For this Powerball jackpot, the cash value is estimated at $602 million (before taxes). But that upfront choice can have long-term consequences.
Nicholas Bunio, a certified financial planner in Pennsylvania, says he’d personally opt for the annuity—even as a finance expert—because it helps prevent catastrophic financial mistakes.
“It allows you to make a mistake here and there,” Bunio said. “People don’t understand there is a potential for loss. They only focus on the potential for gain.”
With interest rates rising, annuities are becoming more attractive, as they invest the lump sum and pay it out over time, potentially increasing total value.
Still, lump sums remain popular, likely because they offer immediate access to wealth. But experts urge caution.
“You’d be taxed up to 37% federally, and then more depending on your state,” said Steven Evensen, CFP, with Gerber Kawasaki Wealth and Investment Management. “Speak to an accountant so you don’t mentally spend more than you’ll actually receive.”
