Scott Iskowitz, Associated Press
TALLAHASSEE, Fla. — So you have a lottery ticket worth $590.5 million. Now what?
If you won Saturday's historic Powerball jackpot and you haven't already done so, sign the ticket. Now.
Finished? Now call a lawyer — even before your spouse if things are a little shaky on that front. Next you'll need a financial adviser, an accountant and a therapist.
The Associated Press asked more than 20 personal financial advisers how the winner should proceed, and they agreed it's crucial to assemble a team of advisers who can be trusted. Chances are the winner wasn't mega-rich before, so it's had to know what to expect.
"You don't need a financial planner immediately, because you don't have the check in your hand. You need the lawyer before you need the financial planner because you've got to get all the necessary legal work done as quickly as possible," said Stuart Goldberg, a Tallahassee-based estate and tax lawyer. That can include creating a trust fund, shoring up a will, getting advice on how best to claim the money so the government gets less of it and discussing who else might try to claim they're entitled to a share. "If you collect the ticket while you're married and your wife immediately files for divorce, does she get half?"
The winning ticket was bought at a Publix supermarket in Zephyrhills, a city of about 13,000 that's 30 miles northeast of downtown Tampa. The winner has 60 days to claim the biggest jackpot in Powerball history if they choose a lump sum payment. Under Florida law, the person can't remain anonymous.
No one had come forward to claim the prize on Monday, and lottery officials said they were expecting the person to wait at least a few days.
Experts say the winner should thoroughly vet whoever's on their team of advisers. And while the first call may be to an attorney or financial planner who's a friend or relative, such acquaintances may not be best capable of dealing with that kind of money. They can, though, give advice on where to go next.
"For that kind of money, I would certainly want a well-known reputable group, not cousin Bernie who has a securities company down the road," Goldberg said.
Ginger Snyder, vice president of investments for The 360 Wealth Management Group of Raymond James in Tampa, agreed that the lawyer should be the first hire and should be present for subsequent talks with a financial planner.
"Once everything is calmed down, as an adviser I would treat them just like any other client that I have. It's a little different because obviously it's sudden wealth," Snyder said. "I would have to assume that this is going to be a lot more money than they have currently, so I would talk to them what their goals might be and what relationships are important to them."
Many advisers said to avoid high-risk investments and opt for lower yielding but more secure investments. Even the most conservative investment should yield at least a 3 percent return. Considering the lump sum payment could be as high as $277.5 million after taxes, the winner could live off $8.3 million in interest per year without touching the winnings.
Among other advice: The winner should change his or her phone number and email address and give the new ones out only to those who need it. Once one's identity is revealed, there will be plenty of people offering their financial services — not all of whom have pure motives.
"Do a Google search on all the lottery winners who squandered it or became miserable," said Buz Livingston, a Santa Rosa Beach-based financial adviser.
Of course, many people, family and friends included, will want money.
"Hire someone to deal with all of the solicitations including those from family and friends. If anyone asks you for anything you can simply tell them they have to contact Mr./Ms. X," said Jennifer Hartman, a Los Angeles-based financial adviser.
- Elder L. Tom Perry's cancer terminal, 'has...
- The top 10 highest-paid female CEOs
- The 50 hardest-working cities in America,...
- Feds release sage grouse conservation plans...
- South Africa shaken by FIFA corruption probe
- Neverland, former home of Michael Jackson, on...
- Latest on flooding: Body of missing Texas...
- Officials say those Boston snow piles are...
- Elder L. Tom Perry's cancer terminal,... 36
- PacSun pulls T-shirt from shelves after... 14
- 'Such a stress reliever': In Rhode... 13
- US to 'fine tune' Iraq strategy in... 12
- Family stress and poverty affect... 12
- Administration asks skeptical judge to... 9
- Census: Number of Americans on public... 9
- Obama urges Senate to renew... 7