What To Do When You Win The Lottery in Australia 

They say the chance of winning the lottery in Australia is something like one in over 60 million. So, you’re one of the very few to defy near-impossible odds and achieve what the rest of us can only dream about. Amazing – congratulations! It will take some time to come down from this, right? But, as incredible as it all sounds, you’re now on a precipice because the future ahead could go one of two ways now – very up or very, very down. 

We’ve all heard the unimaginable stories of lottery winners worldwide losing or squandering their astounding windfall. It can happen, even when figures fall into the tens of millions. In addition to ActOn Wealth’s strategic financial advice for lottery winners, we’ve compiled this list of the best things to do if you win the lottery. When you’ve got the right financial planners behind you, you can afford to keep your head in the clouds that little bit longer. We’ve got you! 

Get Professional Financial Advice ASAP

It’s no surprise we start with this one. After all, we’re professional financial advisors! However, it stands to reason that this could be the single smartest move you make following your lottery win. 

Believe it or not, seeking professional advice that starts (with your clear understanding and approval) to implement protection and growth strategies ASAP can be liberating. Once a solid financial base is set, you’ll no doubt have plenty of spending money to do with what you want, at no risk to the growth and safeguarding of your enormous nest egg. 

The first thing to do if you win the lottery is to get the best financial experts behind you. 

Understand Your Taxation Obligations 

Sorry. You probably thought by now our advice would start to move towards spending. Not yet. Instead, we recommend you take the time to really understand your new tax situation. Granted, you don’t have to pay tax on the lottery win per se. However, the moment you use those dollars to start making more money, the ATO comes calling. 

But don’t worry – our financial advisors thoroughly understand your obligations. We’re passionate about empowering our clients with financial literacy. That may not be high on your agenda right now, but a little knowledge could save you from a world of tax return heartache down the track.

Update Your Will 

As estate planning experts, we always recommend our clients update their will whenever they experience a significant life change. Winning the lottery definitely falls into that list. You may want first to decide what to do with your money and then update your estate plan. As long as it’s on your radar and something you ensure is done relatively quickly after the windfall transfers into your account. 

Stop Before You Start (Over)spending

Forget burning; this much money is enough to incinerate anyone’s pockets! You might be itching to buy a home, new car, family holiday and shares in that new start-up your uncle has not let up about since he discovered your win. But don’t do it. Or don’t do it just yet, and not everything all at once. 

What you’re going through is near impossible for the rest of us to truly imagine, so it’s easy for us to suggest you pause your pennies. But big windfalls can prompt big spending. The more money you know you have, the more or greater value of the things you can purchase. What was your financial behavioural pattern before your newfound wealth? For example, if you got a promotion at work, would you invest the difference between last month’s pay cheque and this month’s, or would you just dial up your spending? It’s all relative. 

For most of us, the more money we make, the more we buy. When you’re talking millions or tens of millions, this can become an incredibly slippery slope… 

Don’t Do Nothing

We’re putting a double negative in the title here; that’s how important we think this one is! The good news is that if you followed our advice in point 1.0 and partnered with ActOn Wealth, you can forget all about this point. The team will already have worked on a tailored financial strategy addressing the best ways to grow and protect your wealth. 

Sometimes, growth goals can be achieved through investments such as shares, stocks, superannuation, property purchases, clever (but achievable) budgets, and confident cash flow plans. Protection goals can be achieved with robust insurance coverage. 

But all these require planning, understanding and decision-making. Putting your head in the sand and avoiding making any decisions won’t make your money grow. Thanks to inflation, even millions in savings start to go backwards if you do nothing. 

Do Keep Your Day Job (For Now) 

Oh, this must be so tempting. The idea of waking up on Monday morning and saying to yourself, “I never have to be up by a certain time any day of the week for the rest of my life,” does sound dreamy. But hang on a second. Work brings more than a pay cheque, right? It brings social connection, professional fulfilment, a sense of purpose, and important routine… None of these are negatives. 

So don’t hand in your notice just yet. Maybe you could keep working and donate your pay cheque to charity?  Work fewer days just for fun pocket money, or continue working but change what you do and who you do it for? 

Don’t Tell Everyone You’ve Just Won the Lottery

Of all the things to do after winning the lottery, shouting it to the rooftops may be high on the agenda. But log out of social media for a second and think this through. Sadly, not everyone out there will be happy for you. Some will be envious or green with envy. Others might be opportunists and conjure ways of getting the money out of your account and into theirs. As disappointing as it is to say it, not everyone will respond with goodwill. So, be careful and consider who you tell and why. 

What To Do If You Win The Lottery? Call ActOn Wealth

As expert financial advisors, we’re here to help you make smart financial sense of your big win. As it stands, your life has changed forever. However, you potentially have the opportunity to positively affect others’ lives as well or sustain your win so you look after family members for generations to come. Whatever your goals, it’s important to consider more wealth-creation options, safeguard the win and sort out a new estate plan. 

Consider us part of your new support team. Contact our ActOn Wealth financial planners today and see how our experts can help.