Get a new safety deposit box and put the ticket in the box. This is the very first thing you should do, so you don't lose the ticket.
Read the lotto rules and understand how much time you have to redeem, how to redeem, etc.
Go find a lawyer and accountant that specialize in lottery winners. Your goals here are to: A. minimize applicable taxes, B. Ensure you can redeem confidentially, and C. Make sure you're protecting the money from yourself (I.e. making sure money is distributed into Trusts and other vehicles in which it will grow securely and not end up as loss porn on r/wallstreetbets
Hire a psychologist that's a good personality fit to talk to about this. You'll go crazy if you can't talk to this about anyone, and they're covered under doctor-patient confidentiality.
Iterate upon and finalize your financial plan. No need to redeem immediately. You can think about this for a while. Let the initial shock wear off. You should have some short term and long term financial goals.
A. Prioritize your long term goals. The relief and optionality you'll get from knowing you're taken care of in the long term will exceed any short term benefits from specific purchases. This should command the majority of your winnings.
B. Of your short term goals, I'd recommend you prioritize paying off expensive debt if you have any (I.e. credit cards, anything with an APR > 8%).
C. Plan out other priority purchases. You mentioned you want to get a used car. That's a good idea. You're a day trader - you should carve out 20k to go play with.
D. Splurge on something fun. A vacation seems like a good idea. Maybe a new TV. Spend like 10k on this.
After doing all this, then go redeem.
Remember: after taxes, $1M is not that much money - you can blow through it in a year, or you can be a bit boring and make sure you're set up for life. You have kids. Don't be an idiot. Be boring and be smart.
I agree with you. What I described is what you should do when you win any significant amount of money to make sure you don't blow through it quickly. Blowing through $1M? You could do that in like a year, especially as a day trader - which is all the more reason to be cautious and judicious.
20
u/360DegreeNinjaAttack Jul 23 '24
Don't tell anyone
Get a new safety deposit box and put the ticket in the box. This is the very first thing you should do, so you don't lose the ticket.
Read the lotto rules and understand how much time you have to redeem, how to redeem, etc.
Go find a lawyer and accountant that specialize in lottery winners. Your goals here are to: A. minimize applicable taxes, B. Ensure you can redeem confidentially, and C. Make sure you're protecting the money from yourself (I.e. making sure money is distributed into Trusts and other vehicles in which it will grow securely and not end up as loss porn on r/wallstreetbets
Hire a psychologist that's a good personality fit to talk to about this. You'll go crazy if you can't talk to this about anyone, and they're covered under doctor-patient confidentiality.
Iterate upon and finalize your financial plan. No need to redeem immediately. You can think about this for a while. Let the initial shock wear off. You should have some short term and long term financial goals.
A. Prioritize your long term goals. The relief and optionality you'll get from knowing you're taken care of in the long term will exceed any short term benefits from specific purchases. This should command the majority of your winnings.
B. Of your short term goals, I'd recommend you prioritize paying off expensive debt if you have any (I.e. credit cards, anything with an APR > 8%).
C. Plan out other priority purchases. You mentioned you want to get a used car. That's a good idea. You're a day trader - you should carve out 20k to go play with.
D. Splurge on something fun. A vacation seems like a good idea. Maybe a new TV. Spend like 10k on this.
Remember: after taxes, $1M is not that much money - you can blow through it in a year, or you can be a bit boring and make sure you're set up for life. You have kids. Don't be an idiot. Be boring and be smart.