Online Lottery Tickets

Lottery Lessons From the Biggest Powerball Winners Ever

In January of 2016, the Powerball jackpot soared to record-breaking amounts. Three winning tickets were sold for the $1,586.4 billion prize, making Maureen Smith, John and Lisa Robinson, and Mae and Marvin Acosta not only the biggest Powerball winners, but the winners of the biggest Play online lottery jackpot ever awarded across the world.

Here are seven smart lessons you can learn from how the three Powerball winners each handled their life-changing experience. Find out what the winners did right (and wrong) to be prepared in case a huge windfall comes your way.

1

 Take Your Time Claiming Your Prize

 Three Powerball Winners Shared This $1.5 Billion Jackpot. Corbis via Getty Images / Getty Images

If you have a multi-million lottery ticket in your hand, you might be tempted to rush out and claim the prize as soon as possible. After all, once it's claimed there's no chance of losing the ticket or having it stolen.

However, it's a good idea not to jump the gun and claim your prize too soon. You'll have things to get in order and decisions to make before you start.

Two of the three January 2016 Powerball winners waited to claim their prize. Maureen Smith waited about a month while Mae and Marvin Acosta waited more than six months, claiming they needed the time to assemble a team of advisers.

On the other hand, John and Lisa Robinson went on the Today Show before they even claimed their prize, a reckless move that shocked experts. Although things worked out for the Robinsons, John admitted to being frightened to travel interstate when everyone knew he was carrying a ticket worth millions in his pockets.

The first thing you should do is check on the rules in your state for claiming your prize, since you definitely don't want to miss the deadline. How long you have to claim your prize varies depending on whether you plan to take your prize as a lump sum or as an annuity (see step three below).

You should also see whether your state allows you to remain anonymous after claiming the prize, which would reduce the problems that come with becoming a lottery winner. Currently, six states including Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina let Powerball winners stay totally anonymous, while other states offer ways for lottery winners to shield their identities.

2

 Get Good Legal and Financial Representation

 Powerball Winners Need Excellent Legal Representation. Robert Daly / Getty Images

After you've verified your options for claiming your Play lottery online prize, you should focus on getting solid legal and financial advice. Each of the three January 2016 Powerball winners did the smart thing and retained legal representation before stepping forward.

When you are dealing with a multi-million prize, you need to have a team of professionals to help you sort out the best ways to maximize your earnings and to protect yourself. At a minimum, you'll need a lawyer, an accountant, and an investment advisor who are familiar with dealing with windfalls.

Take your time selecting the right team of advisers, because these people can make your life much harder or much easier. John and Lisa Robinson's lawyer was the one who suggested going on the Today Show before claiming their prize, a move that had the goal of helping them control their story, but which many found risky. So you need to be sure that you and your team are on the same page when it comes to handling your fortune and your publicity.

Some of the many challenges the Powerball winners faced along with their team of advisers included how to protect themselves from frivolous lawsuits and debtors, where to invest their money, how to handle requests for money from both reputable and disreputable sources, and how to set up charitable donations.

Not sure how to get started? TheBalance has advice on what kind of financial adviser to use, how to interview an accountant to find one that fits your needs, and the steps to take to choose a good lawyer.

3

 Lump Sum or Annuity?

 The Owner of the Store that Sold a Winning Ticket Also Received a Large Check. Ringo H.W. Chiu / Getty Images

Powerball jackpot winners are given a tough choice: accept a smaller amount of money as a lump sum, or receive the entire amount of the jackpot spread out over 30 years.

In the case of the $1.5 billion January 2016 Powerball jackpot, the three winners each chose between a $310 lump sum (before taxes, close to 40 percent of the winnings) or $533 million (pre-tax) paid out in increasingly greater amounts, starting at $22 million and rising each year.

There are advantages and disadvantages to each choice. With the lump sum, you pay a large amount of taxes all at once, whereas with the annuity, you only pay taxes on the amount you receive each year.

Receiving income each year makes it harder to blow through your entire windfall at once (though some lottery curse victims managed to do so by taking out loans on their future income). On the other hand, with proper investment, your lump sum could bring in greater dividends than your annuity might.

In the case of the January 2016 Powerball jackpot, all three winners opted for the lump-sum payment. Maureen Smith said her age heavily influenced her decision. At 70 years old, she wasn't sure how many payments she'd see.

Even though they're younger, the Robinsons agreed. "We’re going to take the lump sum, because we’re not guaranteed tomorrow," John said.

Before you make the decision yourself, be sure to consult with your advisers to make sure that you make the right decision for ​your situation.