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What to Do If You Win the Lottery (And Why It Matters Even If You Don't)

what to do when you win the lottery

Quick question: If you won the lottery tomorrow -what's the first thing you'd do?

We've all thought about it. And with Americans spending over $100 billion on lottery tickets in 2024, and a $1.8 billion jackpot winner in December 2025 (the second largest in history), it's not just a fantasy - it's something that actually happens to people.


But here's the uncomfortable truth: sudden money doesn't equal financial security if you're not smart about what happens next. The problem isn't the money - it's what you do with it.

In this episode, Meghan and Maddie are walking you through the exact steps to take if you receive a windfall, whether from the lottery, an inheritance, a business sale, or any large sum of money. They'll cover the smartest first moves, how to protect yourself, what taxes really look like, and how to build a plan that supports your actual life - not just your lifestyle.


Plus, they're getting real about what THEY would do if they won, including the fun splurges, the smart moves, and the hard questions about family, boundaries, and identity.

Even if you never buy a lottery ticket, this episode matters. Because windfalls come in many forms, and the principles for managing them are universal.


What You'll Learn in This Episode About The Lottery


The Numbers:

  • Americans spent over $100 billion on lottery tickets in 2024

  • December 2025 saw a $1.8 billion jackpot winner (second largest in history)


The Reality Shift: Receiving a large sum of money can be overwhelming, and sudden money ≠ financial security without smart systems. The problem isn't the money - it's what happens next.


Who This Episode Is For:

  • People who play the lottery

  • Anyone waiting on an inheritance

  • Anyone who loves "what if" scenarios

  • Anyone who might receive a windfall in any form


Three Critical DON'Ts:


1. Don't Quit Your Job Immediately

  • Keep your routine while processing this life change

  • Your job provides structure during chaos

  • Gives you time to make decisions from clarity, not emotion

  • The money will still be there in 6 months


2. Don't Tell Everyone

  • The more people who know, the more pressure you'll face

  • Money changes relationships fast

  • You can always tell people later but you can't un-tell them

  • Keep the circle incredibly small


3. Don't Make Big Purchases Right Away

  • That dream house can wait 6 months

  • Cars, boats, luxury items can wait

  • The money isn't going anywhere

  • Bad decisions are hard to undo


Key Takeaway: Time is your biggest asset when you receive a windfall. Give yourself AT LEAST 30-60 days before making any major decisions.


Important First Step: Look up how long you have to claim your prize - sometimes you have up to a year, which gives you time to get everything sorted.


Who Needs to Know:

  • Your spouse/partner (obviously)

  • Maybe 1-2 extremely trusted people max

  • That's it for now


Building Your Team (The Non-Negotiables):


1. CPA (Certified Public Accountant)

  • Specializes in high-net-worth individuals

  • Helps you understand tax implications BEFORE any moves

  • Can model different scenarios

  • Go to them FIRST - before the financial advisor


2. Fiduciary Financial Advisor

  • MUST be a fiduciary (legally required to act in YOUR best interest)

  • Look for fee-only advisors (paid by you, not commissions)

  • Experience with sudden wealth/windfall clients

  • Red flag: Anyone promising huge returns or pushing specific products


3. Estate Planning Attorney

  • Helps protect your assets

  • Sets up trusts if needed

  • Plans for long-term wealth transfer

  • Protects you from lawsuits and creditors


Why Order Matters: Go to a CPA first - you need to understand the tax situation before making ANY financial moves. This isn't overkill; this is financial surgery. You need specialists.


Privacy Protection:

  • Some states allow anonymous lottery claims - USE THAT if possible

  • If not, consider claiming through a trust or LLC

  • Prepare for attention if your name goes public


Safe Parking Spots:


1. High-Yield Savings Account

  • FDIC insured up to $250K per account

  • May need multiple accounts/banks for full coverage

  • Currently earning ~3.5% - not exciting, but safe

  • Liquid - you can access it if needed


2. Money Market Funds

  • Slightly higher returns than savings

  • Very safe, very liquid

  • Good middle ground


3. Short-Term Treasury Bills

  • Backed by US government

  • 3-6 month terms

  • Safe as it gets

  • Gives you time to build long-term plan


What NOT to Do: ❌ Don't invest in a friend's "amazing business opportunity" 


Timeline: Park it safely for 3-6 months while you work with your team. This money has waited your whole life - it can wait another few months.


This Is Where Most People Go Wrong


Create Your Framework (with your advisor):


1. Spending

  • What does your sustainable lifestyle look like?

  • Can cover all needs + wants without touching principal

  • Build in buffer - life gets expensive in unexpected ways


2. Saving/Protecting

  • Emergency fund (yes, even lottery winners need this)

  • Maintain liquidity for opportunities

  • Protect against inflation


3. Investing

  • Diversified portfolio for long-term growth

  • Conservative approach - you don't need big risks

  • Focus on preservation and steady growth


4. Giving

  • Charitable causes you care about

  • Family support (with boundaries)

  • Legacy planning


Windfalls Come in Many Forms:

  • Year-end bonuses

  • Inheritance from a family member

  • Stock compensation that vests

  • Settlement from a lawsuit

  • Sale of a business

  • Career jump with big salary increase

  • Even tax refunds are mini-windfalls


The Same Principles Apply (Whether $5 Million or $5,000):

  1. Pause before doing anything

  2. Protect yourself and get advice if needed

  3. Understand the taxes

  4. Park it safely while you plan

  5. Build a framework before spending

  6. Let your values guide decisions


The Real Lesson:


Intentional Planning:

  • Make decisions from clarity, not emotion

  • Take time to think things through

  • Don't let excitement override strategy


Slowing Down:

  • The best financial decisions are rarely made in a rush

  • You can always spend money later

  • You can't un-spend it once it's gone


Aligning Money With Values:

  • What do you want money to do for you?

  • How do you want to feel about your finances?

  • What matters more than the dollar amount?


Final Reflection: What would you want money to change in your life? And just as important - what would you want it to protect?


Maddie's Final Thought: Most of us will never win the lottery. But all of us will have moments where money decisions feel big and important and a little scary. In those moments: Pause. Plan. Protect yourself. And let your values lead the way.


Key Takeaways

  • The biggest mistake is moving too fast - give yourself 30-60 days minimum

  • Build your team before making decisions: CPA first, then fiduciary advisor, then estate attorney

  • Understand that taxes will take 37%+ federal plus state taxes

  • Park money safely for 3-6 months while building your long-term plan

  • Create a framework: spending, saving, investing, giving

  • Set boundaries with family and friends - you can always give later

  • These principles work for ANY windfall, not just lottery winnings

  • The best financial decisions come from clarity, not emotion


Free Resources Available


Final Thoughts

If you DO win the lottery, hire good advisors - and email Meghan and Maddie!

Send this episode to your friend who always buys lottery tickets. And if YOU buy lottery tickets, no judgment - just remember what we talked about today.


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