NEW ORLEANS (WGNO) — The Powerball jackpot has skyrocketed to $1 billion after 38 consecutive drawings without a winner.
Although the chances of winning are nearly one in 300 million, what happens if you really do end up winning the grand prize? Financial adviser Cliff Favrot says, at first, do nothing at all. Then, to avoid feeling overwhelmed, create a plan.
“I think, really, they should spend some time to grow, to accept it, understand it and even come up with a plan for the family. Maybe a structure and direction of what they’d like to achieve with this enormous wealth,” said Favrot.
There are two grand prize options, a lump sum of $483.8 million or receiving an estimated $1 billion over the course of 30 years through an annuity.
“I would always say take the money because then you have full control,” said Favrot. “Otherwise, who knows? Maybe something will happen to a funding source lottery. Now, in this case, we’re looking at around $500 million after taxes, which is an absolute mind-boggling figure.”
According to Favrot, hiring a financial adviser or life coach could be helpful in navigating a massive life change. Which, in fact, is found to be a positive one.
“Actually, the studies indicate the inverse, that most people end up with a higher level of satisfaction. Again, it’s being thoughtful in getting there and again having a plan, having a strategy.”
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