Home Finance Mega Millions surges to $750 million. Here are tips if there’s a winner

Mega Millions surges to $750 million. Here are tips if there’s a winner

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Allen J. Schaben | Los Angeles Times | Getty Images

The Mega Millions jackpot just won’t quit.

With no ticket matching all six numbers drawn Tuesday night, the top prize has shot up to $750 million. The amount — which exceeds the entire economic activity of some small nations — marks the fifth-largest jackpot in U.S. lottery history.

The Powerball jackpot, meanwhile, is $550 million. While the chance of a single ticket matching all six numbers in either game is miniscule — 1 in 302 million for Mega Millions and 1 in 292 million for Powerball — it’s still worth considering how you would handle such a windfall if you were to beat the odds.

First and foremost

One of the most important aspects of winning an extreme amount of money is to protect the winning ticket. Experts recommend making a copy and putting it in a safe place.

Your goal should be to share the news with as few people as possible. You also should aim to shield your identity, if you can. So while the standard advice is to sign the back of the ticket, be aware that it could interfere with your ability to remain anonymous if state laws allow you to create a trust or limited liability corporation to claim the windfall instead of doing so in your own name.

And, you should seek expert advice before claiming your prize, starting with an attorney who can help you navigate your sudden wealth. Your team should also include a CPA and financial advisor, who should be experienced in helping clients navigate huge windfalls.

“You want to have thoughtful [experts] guide you through the emotional side of winning but also the obligation that comes with having this kind of wealth,” said CPA Mark Alaimo, a member of the personal financial specialist committee for the American Institute of CPAs.

Reducing your tax bill

Investment opportunities 

Big jackpot winners will see doors open to an investment world that most Americans will never get a direct peek at.

To get access to more exclusive investments opportunities, wealthier individuals can be deemed “accredited” by federal regulators — meaning they meet the test of having at least $1 million in investable assets (excluding the value of their home) or average yearly earnings of $200,000 ($300,000 for married couples). 

Investment opportunities that will become available to the winners run the gamut, Alaimo said. For instance, they could gain access to private equity funds that invest in companies whose shares don’t trade on stock exchanges. Or, they could get the chance to invest in commercial real estate or venture capital funds that invest in things like tech startups.

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