10 Rules That All Lottery Winners Should Follow
Who doesn’t want to win a lottery! Think how great it will be if you become excessively wealthy over time. Since you are a winner of a million-dollar lottery, it is definitely going to be a life-changing event for you.
But when you win a lottery after buying a lottery ticket online, there are a few things that you need to keep in mind.
- Sign the Ticket
When you play India lottery and win a prize, make sure that you sign the ticket. It is one of the most commonly forgotten rules. What if you lose your ticket and someone else snags to collect the prize? It can be difficult to fight over this. There have been many disputes surrounding who is the owner of the ticket.
The lottery ticket is taken as the last form of bearer bonds, which anybody will be able to collect if they show up with bonds or coupons. Generally, lottery tickets expire within 90 days to a year.
- Don’t Let People Know
In case you win millions of dollars, chances are you might want to brag about it and share your joy. How can you not! The problem is when you tell people before collecting the winnings it might put you in danger.
Anyone who has ever done anything for you might come asking for a share. Also, you might have heard about ransom and kidnapping before, once a lottery winner was also murdered for money. So, if your state allows it make sure you remain silent.
- Don’t Take the Cash Up-Front
Getting such a huge amount at once might sound better than getting a pay-check for the next three decades. Almost 70% of the lottery winners end up being broke within just a few years.
For instance, you choose to get $172 million upfront or receive a $300 million payout over the course of your lifetime. Many people vote for the former instead of the annuity payment since it is instant empire-making money. Visit a tax professional or an investment advisor who can tell you how you can make the most of the money you have won.
- You Have to Pay Taxes
When you buy lottery ticket online in India and win, you will have to pay taxes. You should know that there is a 3% tax. This tax money is used to improve healthcare and education in the country. Lottery wins are taxable in the country under the Income Tax Act and the Finance Act of 1986.
When you win the lottery, your wins will be taxed at a flat 30% in the states where the lottery has been legalized. Additional tax percentages might be added based on the amount. For these states, the lottery win tax is an important source of revenue.
- Consult an Advisor to Handle Your Money Better
You might be thinking that you are the best person to handle your winning money but that is not the case. If you have a respectable and solid team of advisors, you can protect your assets now or in the future.
Also, the money is not tax-free. You will have to pay a high amount of tax to the Indian government. In case you don’t know how to make the best of your money or how to pay taxes, you should not play India lottery online.
- Don’t Make Sudden Lifestyle Changes
For the first few months after winning the lottery, make sure that you do not do anything drastic, such as buying a home in an exotic location or quitting your job. Set aside a certain amount of money for splurging. Surely, you want to celebrate the money you have won.
However, make sure that you save big purchases for later. For instance, you can rent a house in the neighbourhood where you planned to move before you make commitments. If you want a car, get a budget model instead of a luxurious one.
- Make Prudent Investments
Many experts recommend that when you win money from an online lottery, you should put it for short term investment. Avoid touching the winning amount for the first six months. Thereafter, ask your investors to put together an investment portfolio and divide between fixed income and equities in half-and-half. Do not invest in something that you don’t have an idea about or something that sounds too good to be true.
- Pay Off Your Debt
There is no better investment play than paying off your debts when it comes to lottery wins. No matter if it is a mortgage or credit card debt, your rate of return is equal to the loan’s interest rate. If you pay a debt, it will be a dollar that you don’t owe anymore. If you invest a dollar, you don’t know if it is going to shrink or grow.
- Take the Required Steps to Protect the Assets
If you have a lot of money, you should guard it against losing assets to the creditors. They include everyone, from ex-spouse and spouses to people winning lawsuits against you. In case you think you have deep pockets they might look for a reason to sue. You need to make sure that you are not an easy target.
The best idea is to raise several roadblocks to make sure that creditors are not able to reach out to your property or money.
- Laws and Decency Standards Are Still Applicable
The wealthier you become, the better legal defence and attorney you will be able to afford. But that doesn’t mean you will live a reckless life without being concerned about the laws of the land. You need to make sure that you don’t end up being in prison. If you end up in jail, you might have to pay out all your wins to attorneys who will fight to keep you out of jail.
If you follow these rules and tips after winning the lottery, you will be able to avoid some of the trouble. But before you participate in the lottery, make sure you choose a reputable site and know well about how to buy lottery ticket online.