You just won more than a billion dollars. It's probably the greatest thing to ever happen to you. But, it can also be one of the worst things to happen to you if you don't know what do next.
Coming into a large sum of money can solve nearly every financial problem you have. It's a dream for many. It can also be overwhelming, and a lot of people make big mistakes that cost them their fortunes. So, what do you do first?
Number one: Don't rush into anything
The first thing you should do if you win the now $1.5+ billion Powerball jackpot, after you scream and jump up and down, is to not rush into any decisions.
Certified financial planner Lyle Wolberg from Telemus Financial Life Management in Southfield says all of this advice is for anyone who comes into a large sum of money, whether from winning a lottery or from an inheritance. First, just relax and take a deep breath.
"Don't rush to do anything. There are major decisions that have tax implications. There are also a lot of variables from a liability standpoint."
Number two: Assemble a trusted team of experts
Wolberg has worked with professional athletes and many people who have come into large amounts of money. He says a lot of people who come into a lot of money eventually declare bankruptcy.
"The key is to protect yourself with good people you can trust. Get referrals and recommendations. Ask for credentials. You want a lawyer, a CPA and financial professional. These experts will help craft your game plan going forward. They will prevent you from making major mistakes."
Number three: Who should claim the winning ticket?
Sure, Grandpa Joe just won the Powerball lottery. He's 76 years old. It is probably better if he lets a close relative like his grandson Billy, who is 23, claim the ticket.
Wolberg says you have to be aware of estate taxes. Another reason having a good team of professionals on your side is so important.
"When a family member dies, the government will tax you 50% of anything above $11 million a couple passes on to their kids. So, just think about a jackpot like the $1.5+ billion Powerball and how much money you will lose in estate taxes."
Number four: Diversify your risk
Wolberg says most of the time with a large jackpot, it makes the most sense to take the lump sum and pay the taxes upfront. Then, it's all about what you do with the remaining money.
"Of course people will use some of the money for fun and for other stuff right away. That's fine. A financial professional will then help spread the risk around and diversify the money to make the market fluctuations not affect them."
The most important lesson: Say no
Wolberg says the most important lesson he can tell anyone who comes into a lot of money is to learn how to say no.
"Everyone seems to have a great idea for you. Emotionally, you don't want to say no to family, friends, etc., but you have to learn to say no and not pour good money into bad things."
"That's why it's so important to have a good trusted team of professionals. Those people's jobs are also to protect you from everyone else and their so-called great ideas."
Michigan is one of the states where a Powerball winner is required to be public. You can't remain anonymous. So, everyone will know you have just become very rich.
About the Powerball jackpot:
The Powerball jackpot for the Wednesday, January 13, 2016 has grown to a record $1.5 billion and counting. The odds of winning are 1 in 292.2 million. In other words, nearly impossible odds. The drawing is held at 10:59pm (ET).
Forty-four states (plus Washington, D.C., Puerto Rico and the U.S. Virgin Islands) participate in the game.
Edward Pevos is the entertainment reporter for Mlive covering Detroit and Southeast Michigan. You can follow him on Twitter @PaparazzoPevos