And while investing and saving might not seem as exciting as spending, there would be no shortage of money available for that, as well.
Experts say it’s OK to splurge on yourself upfront, whether it’s for a new car, new house, overseas vacation or something else you’ve been coveting. The important thing is to set boundaries right away, even when the amount of the win seems unlimited.
“It’s important to set up a preliminary plan and budget right from the start,” Kurland said. “Emotionally, having an initial structure in place is extremely helpful for winners, because this is such an overwhelming experience.”
One common way to help ensure the money lasts is the so-called 4 percent rule. That is, if you withdraw no more than 4 percent of your money each year, it should last decades as long as it’s properly invested in a diversified portfolio, said certified financial planner Jim Shagawat, president of Windfall Wealth Advisors in Paramus, New Jersey.
Applying that withdrawal rate to the after-tax estimate of $491.7 million would mean about $19.6 million could be tapped each year without depleting your wealth.
Additionally, lottery winners in South Carolina get six months to claim their prize. During that time, the winner should assemble a team of experienced professionals to help determine how to handle their new wealth, including an attorney, financial advisor and tax advisor.
“I’m sure the winner is extremely anxious and overwhelmed,” Kurland said. “Like most of my clients, they probably don’t want to wait too long to claim, but they should at least take a few weeks to get their ducks in a row, establish a financial plan and take care of estate planning so that once the funds hit their account, they can hit the ground running.”
Meanwhile, the Powerball jackpot stands at $620 million for Wednesday night’s drawing. The chances of hitting it are slightly better: 1 in 292 million.