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12 things not to do if you win the $700 million Powerball prize

24/7 Wall St. logo 24/7 Wall St. 8/22/2017 Jon C. Ogg

<p>Americans are reminded by politicians and the media that the American Dream has died. After all, a life of hard work, saving money and endless planning and investing is just too much for many people to handle. The American Dream hasn’t exactly died, but the new version of it is very different from that of your parents and grandparents. The New American Dream has become winning the lottery.</p><p>Last week the Powerball lottery drawing reached a $510 million annuity value with a $324.2 million lump-sum cash payout. There was no winner in Saturday's drawing, so the Powerball lottery for the Wednesday drawing has screamed higher to a whopping $650 million annuity value or a $411.7 million cash value.</p><p>Whether a lottery winner chooses to take this payout over a period of 30 years or takes the payment all upfront, this is more than enough money in either scenario to create a multi-generational empire.</p><p>Winning the lottery is one of the greatest things most people could ever imagine. There is also a very sad side to winning the lottery. Many winners end up losing all or most of their lifetime gift, and some winners go broke in just a few years.</p><p>There is an old adage -- no one should ever have to get rich twice. Those who become filthy rich overnight better have a serious plan in place to protect themselves from going broke. It is easy to get wrapped up in thinking about things you would do after winning the lottery. While almost everyone who plays the lottery only thinks about the things they could buy and what else they could do with the money, people rarely think about what they should do before they go start spending their millions.</p><p>24/7 Wall St. has created a guide for lottery winners, the 12 things you should not do if you ever win the lottery.</p> Powerball Lottery Now $650 Million: 12 Things Not to Do If You Win Click through the gallery above to read about 12 things you shouldn't do if you win the $700 million Powerball prize.

Americans are reminded by politicians and the media that the American dream has died. After all, a life of hard work, saving money and endless planning and investing is just too much for many people to handle. The American dream hasn’t exactly died, but the new version of it is very different from that of your parents and grandparents. The new American dream has become winning the lottery.

Last week the Powerball lottery drawing reached a $510 million annuity value with a $324.2 million lump-sum cash payout. There was no winner in Saturday's drawing, so the Powerball lottery for the Wednesday drawing has screamed higher to a whopping $700 million annuity value or a $443.3 million cash value.

Whether a lottery winner chooses to take this payout over a period of 30 years or takes the payment all upfront, this is more than enough money in either scenario to create a multi-generational empire.

Winning the lottery is one of the greatest things most people could ever imagine. There is also a very sad side to winning the lottery. Many winners end up losing all or most of their lifetime gift, and some winners go broke in just a few years.

There is an old adage -- no one should ever have to get rich twice. Those who become filthy rich overnight better have a serious plan in place to protect themselves from going broke. It is easy to get wrapped up in thinking about things you would do after winning the lottery. While almost everyone who plays the lottery only thinks about the things they could buy and what else they could do with the money, people rarely think about what they should do before they go start spending their millions.

Related video: Powerball jackpot hits $700 million (provided by Today)

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24/7 Wall St. has created a guide for lottery winners, the 12 things you should not do if you ever win the lottery (see gallery above).

While the odds of winning the Powerball are about 1 in 292 million, the 12 things not to do can also be used for anyone who comes into vast money unexpectedly through an inheritance, settlement or lawsuit, becoming a stock-option millionaire or from the sale of a business.

There are some serious pitfalls that lottery winners and the newly rich must avoid. After all, with extreme wealth comes extreme responsibility. Take this to heart, and it is no joke: your life may depend on it!

Most lottery winners will choose to take the cash lump sum option rather than the annuity payout over 20 years. The reason is that it is vast and instant wealth, and it is money than almost everyone can imagine making in their lifetimes. And there are an endless number of temptations that the newly rich just sometimes cannot avoid.

The first reality check is it’s rather easy in this day and age to blow through $100 million, $200 million or even $500 million if you want to. Again, endless temptations are coming your way. A lack of planning and refusing to live within reasonable limits must be avoided.

Lottery winners should assume that their family relationships and friendships will be tested. This may seem like a joke, even if it is far from it, but bragging about getting super-rich could literally cost you your life. Thinking that mundane things like financial planning, tax advice and budgets are out the window is a recipe for disaster.

Again, no one who becomes filthy rich should ever have to worry about going broke. Still, the endless temptations can become too strong for many people to handle. Start adding up the costs of buying and then maintaining and insuring all of the things that add up. Mega-mansions, yachts, private jets, luxury cars, lavish vacations, art and jewelry, private island retreats and other temptations. And why not have an entourage too? None of these or other things for the filthy rich are cheap. These come with limitless price tags, and the ongoing annual costs of maintaining them only act to magnify that. Even a combination of just a few of these new vices could wreck your new vast fortune.

There is one thing to take to heart before seeing the 12 things not to do if you win the lottery or become filthy rich overnight: If ANY of these points sound silly, then the key lesson you need to know right now is that you are already at severe risk of going broke if you ever become filthy rich in a short time.

Hopefully at least some reality is setting in here. The entire point of this list of things not to do if you win the lottery or become filthy rich is to keep you from ever going broke. The life lesson that it is easy to fail and hard to succeed holds true even for the newly rich. Again, you should only have to become rich once. Getting rich is hard enough. Staying rich is even harder.

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