Lottery expert Jared James warns jackpot winners of Powerball and Mega Millions to take careful steps to protect their money. Without the right precautions, winners risk losing their entire fortune.
James, founder of the lottery algorithm site Lotto Edge, advises winners to build a strong team of advisers before claiming their prize. He shared a five-step plan to help winners manage their new wealth wisely.
First, James stresses hiring a competent attorney. He cautions against choosing just any lawyer, even if they come recommended by friends. “You want someone experienced with high-net-worth clients or complex financial situations,” he said.
Second, winners should hire a financial adviser—different from their attorney. James warns against trusting just one person with all decisions. “Having multiple advisers gives you a better perspective and helps prevent unwise choices,” he explained.
James also advises winners to carefully interview advisers rather than picking the first one they find. “Look for strong communication skills and relevant experience,” he said.
Another important tip is to avoid boasting about winnings on social media. “There’s no reason to flaunt it,” James said. “Your life will change dramatically, so keep quiet and focus on planning.”
He also recommends preparing family members for the impact of sudden wealth. This is especially important if the winner has young children, who might face social challenges when classmates learn about their family’s fortune.
Some states allow lottery winners to remain anonymous, but others, like California, require public disclosure of names. James warns winners in such states might want to consider relocating for privacy.
More than a dozen states allow anonymity under certain conditions. For example, Kansas and Maryland let any winner stay anonymous, while states like Arizona and Texas have minimum prize thresholds. Arkansas allows anonymity for three years before revealing the winner’s identity.
Recently, Rosemary Casarotti became California’s largest Mega Millions winner with a $1.2 billion prize. Though her lump sum payment was $571 million, she has tried to keep her identity as private as possible. She bought her winning ticket from a Circle K store in Cottonwood.
James’ advice highlights the challenges lottery winners face beyond just winning—showing that protecting their money and privacy is just as crucial.
