Personal Finance

The winning ticket for the $1.35 billion Mega Millions jackpot was sold in Maine. Here are the first 3 things the winner should do.

Mega Millions
The Mega Millions jackpot is offering its second-largest prize ever at $1.35 billion. Kevork Djansezian/Getty Images
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1. Don't announce your good fortune to the world.

mega millions
Spencer Platt/Getty Images

As excited as you may be to share the big news with everyone, it's the last thing you should do.

"Once you're announced as the winner, the sharks will start circling," Kristen Euretig, a financial planner who founded Brooklyn Plans, previously told Insider.

With only a few states allowing anonymity to lottery winners, it can be difficult to keep the news private. But you can do a few things to stay under the radar, like deleting your social media accounts, leaving town for a few days, and setting up an LLC or trust so people can't track you.

You can also refrain from announcing the big win publicly on social media, in a TV appearance, or in person. Your coworkers, great aunt, and former classmates don't need to know.

2. Get a lawyer and a financial planner.

A photo of a financial advisor speaking with a client in her home.
A stock photo of a woman talking to a financial advisor. AlexanderFord/Getty

Don't be one of the lottery winners who blow through all their winnings.

First things first, it's in your best interest to hire a lawyer to help take care of any legal complications that come with winning the lottery.

And don't even begin to think about how you'll spend your winnings until you hire a financial planner to help you manage your jackpot. They can help with things like knowing your investment options and saving for retirement, as well as deciding what big purchases to make.

"It may seem like you have an infinite amount of money to work with, but before you understand the tax implications and options, it's best to hold tight," Euretig said.

A financial planner can also walk you through one of the most important decisions you'll make after winning the Mega Millions: whether you should take the money as an annuity or a lump sum.

3. Generally, don't take the lump sum.

money
If you're very good with money and have a team of trusted advisers, a lump sum can offer a greater potential for increasing your wealth if you smartly invest your winnings. Getty Images; Insider

Choosing the annuity option distributes the jackpot over 30 payments, which increase by 5% each year to keep up with the cost of living, Lauren Lyons Cole, a certified financial planner, previously explained to Insider.

Choosing the lump sum means taking the entire cash value at once, but it's less than the value of the total jackpot. The cash payout for Mega Millions is currently $707.9 million, according to USA Today. 

While both options yield staggering amounts of money, Lyons Cole advises making the more cautious choice and choosing the annuity.

"Taking the annuity offers a degree of protection against blowing all your money in a short time — or being taken advantage of by a wayward financial adviser, family member, or friend," she wrote.

If you're very good with money and have a team of trusted advisers, a lump sum can offer a greater potential for increasing your wealth if you smartly invest your winnings.

"But money is way more than math," Lyons Cole said. "From an emotional and risk-management perspective, most people will have better long-term success in sustaining their newfound wealth by stretching out the winnings over time."

And don't forget: You'll still have taxes to pay.

Any Mega Millions jackpot winner should be smart about their financial decisions and proceed slowly. The money isn't going anywhere — unless you spend it all.

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Hillary focuses on the intersection of youth culture and wealth, reporting on the lifestyles and economics of millennials and Gen Z. She covers trends in how these generations are living and spending and examines how the economy is shaping them and their financial behaviors.  She also reports on consumer spending and New York City's economy, and previously wrote about the ultrarich and personal finance at Insider before joining its economy team. Basically, she's written about money from every angle you can imagine. Inside the epicenter of America's Great Resignation: Kentuckians lay out the 4 forces driving the state's labor shortage — and explain why it's here to stay Millennial New Yorkers are ditching basements and roommates for luxury apartments at $1,000-plus discounts The world's youngest self-made billionaire hopes to power every future self-driving car with a technology that Elon Musk says is 'doomed' Tiffany and the Trumps: Insiders describe how the president's younger daughter has charted what they say is a distant relationship with her father and come to terms with having America's most divisive last name Inside the French Riviera's pandemic party problem Yachting insiders detail the rampant sexual harassment aboard million-dollar ships, where crew members are promised a glamorous lifestyle and can instead find themselves trapped at sea with no one to turn to Millennials came limping out of the Great Recession with massive student debt and crippled finances. Here's what the generation is up against if the coronavirus triggers another recession.
Katie Balevic was a weekend reporter on the trending team. Her coverage at Business Insider focused on guaranteed basic income, Meta, and tech industry executives. She also enjoyed covering breaking news, politics, and the court system.Before joining BI, Katie was a freelancer for Austonia and The US Sun, as well as an intern at NBC and the US Capitol. She is a graduate of the University of Texas at Austin, where she earned a degree in journalism, a degree in government, and a minor in Russian language. Some of her favorite stories include: