Powerball made headlines on Wednesday night in December when one lucky ticket matched the winning numbers and claimed a massive $1.817 billion jackpot, ending a long streak of 46 drawings with no top winner. It marked the second-largest lottery jackpot in U.S. history, instantly changing one person’s life forever.
But while winning sounds like a dream, what comes next isn’t always simple. Once the celebration fades, jackpot winners are often left to figure things out on their own — and that’s where smart planning matters most.
First big decision: lump sum or annuity?
The winner now faces a major choice. They can take:
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An annuity worth about $1.817 billion, paid out over 30 years
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Or a lump sum of roughly $834.9 million before taxes
According to Wells Fargo financial advisor Emily Irwin, the right choice depends on two things: tax impact and how you personally handle money.
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A lump sum gives you full control right away and more flexibility for investing, even though taxes hit harder upfront.
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An annuity offers steady payments — one immediately, followed by 29 yearly payments that grow by 5% — which can feel safer for people who worry about overspending.
You’re rich now — but you’re also on your own
“Many people don’t realize this,” Irwin has said, “but after winning the lottery, you’re essentially on your own.” That’s why she strongly advises building a trusted team of experts as soon as possible.
A strong advisory team should include:
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An attorney
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A tax accountant
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An investment advisor
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A philanthropic advisor
And don’t rush it. Interview multiple professionals and choose people who understand high-net-worth financial planning — you’ll likely work with them for years.
Smart money moves that actually last
Some winners make their fortune last for decades. Others lose it fast. One former winner, who claimed $28 million in the early 1990s, invested conservatively in stocks, bonds, and mutual funds. He went back to school, helped his family, and traveled — without blowing it all.
Irwin says smart winners usually:
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Keep a diversified investment portfolio
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Hold some cash for short-term needs
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Invest carefully in stocks and bonds
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Think twice before jumping into real estate
Real estate can be tempting, but it comes with ongoing costs like property taxes, maintenance, and management fees. Winners should ask themselves how much of their total wealth a property would take up and whether they’re ready for those long-term expenses.
Clean up debt before splurging
Before buying luxury items, Irwin suggests paying off student loans, credit cards, and mortgages. A clean balance sheet brings peace of mind and creates a strong financial foundation before big spending begins.
Be careful who you tell
Privacy matters more than many winners expect. Keeping the win low-key at first can help protect personal safety and reduce pressure from outside requests.
Irwin also warns that family and friends may start asking for money. Learning how to say “no” politely but firmly is essential. Some winners even work with coaches who specialize in family dynamics to navigate those conversations.
Biggest rule of all: don’t overspend
Seeing nine or ten zeros in your bank account can make anything feel affordable — but that’s a dangerous mindset.
“It’s absolutely possible to spend it all,” Irwin warns. A few mansions, a private jet, and high ongoing costs can drain even a billion-dollar fortune faster than expected.
The bottom line: Winning Powerball can be life-changing, but staying wealthy takes discipline, patience, and smart advice. Spend slowly, plan carefully, and remember — money can disappear faster than you think if you let excitement take over.
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