If you win the $700M Powerball game, here’s what to do — and how much you’ll actually get

The odds of winning the $700 million Powerball are one in 292,201,338. That isn’t stopping many from dreaming of the big payout — who doesn’t want to be fabulously rich overnight?

It’s not the biggest jackpot in Powerball history, mind you: That was in January 2016, with $1.586 billion won by three people in California, Florida and Tennessee.

So, what should you do if you win? First of all, sign the back of your ticket right away. That locks it to you so it can’t be stolen and turned in by someone else. You might want to check out the Illinois Lottery Winners’ Handbook, too — yes, there is one, and it covers all the details.

Prizes up to $600 can be claimed at any lottery retailer, including your average convenience store. That doesn’t apply to the $700 million jackpot, naturally. For prizes higher than $600 but less than $1 million, you can mail a claim form to the Illinois Lottery Claims Department in Springfield. For the bigger prizes, you’d best call the Illinois Lottery office — and good news: there’s a regional office right here in Fairview Heights.

And you don’t have to claim it right away. Ticket expiration dates vary from 90 days to a year, and are listed on the back of your ticket. It’s not a good idea to go announcing it on Facebook, either; wait until you absolutely must go public before telling anyone, both for your sanity and physical safety.

Some states require that you cooperate with publicity; Illinois does, but has made exceptions when winners demonstrate “a high risk of harm,” according to the Chicago Tribune.

You’re going to need a special bank account, too. The FDIC only insures most accounts up to $250,000, so it’s time for a meeting with upper management, according to State Farm.

Then comes the big choice: Do you take the one-time lump sum or take it in 30 installments over the next three decades?

The lump sum for this jackpot is $443.3 million. Of that, Forbes says you can expect to lose about 40 percent in income tax. So you’ll end up with $265.8 million of your $700 million jackpot. That’s still more than the average piggy bank, of course. Business Insider’s math is a little more generous, anticipating about $293.4 million after federal and state taxes.

If you opt for the annual payout, that’s a “salary” of approximately $23.3 million a year for the next 30 years, plus interest. Of course, you’ll be paying tax on that each year. That’s why many lottery winners advise anyone with a big jackpot to immediately seek the advice of a reputable, established investment firm or tax attorney, which will probably be very happy to gain your business.

Then take a deep breath, and don’t quit your day job just yet. It takes some time to figure out what to do with all that money, and major life-changing decisions should be fully considered, according to Business Insider. (But you can maybe take a vacation to think about it.)

What not to do? It’s a well-known if head-scratching fact that many lottery winners blow through even the most enormous jackpots and end up broke again. According to MSN Money and 24/7 Wall St., failing to seek advice and listening instead to well-meaning friends and relatives is one of the biggest pitfalls. Since most of us are not financial geniuses in the first place, receiving a ton of money won’t make us sudden financial wizards.

For most people, a lottery ticket is just a ticket to dream, since the odds are roughly a bazillion to one that you’ll be one of those lucky jackpot winners. But anyone can come into a windfall, from an inheritance, a sudden stock rise, even a big bonus or tax refund. Following some basic financial management can keep a windfall from becoming your downfall.

Surprisingly, a lot of winners forget to pay off their existing debt, like student loans, mortgages and car payments. They stop carrying health insurance, and can be surprised with enormous bills if someone gets sick or hurt.

And they tend to back the sure-fire business ideas of friends and family, all of whom are sure they can be rich too — with just a little backing money. Many lottery winners who went broke invested in the wrong businesses, because a lottery ticket doesn’t come with experience in venture capital.

Business Insider advises creating a buffer between you and your cousin with a dream. A neutral financial adviser or even a charitable trust can handle all those requests, so you don’t have to become the King of No and make it awkward at Thanksgiving.

Do you have any vices like gambling or drugs? That money can be a huge downfall for you. Put some restrictions on yourself to keep from blowing your windfall at the tables in Vegas. If you can’t control your spending, put someone in charge who can.

And speaking of illicit activities, don’t skimp on the taxes. Uncle Sam tends to go after those with the big bank accounts who try to avoid paying their dues, and tax evasion is a very common cause of “rags-to-riches-back-to-rags” lottery stories, according to Nerdwallet.

And finally, update your will. Yeah, that’s pretty depressing to think about, but the one-page do-it-yourself will you cobbled together on the internet won’t fly for a massive multi-million-dollar estate. Fortunately your new financial advising team should be able to help with that.

In the meantime, hold onto that (signed!) Powerball ticket and wait for tonight’s drawing at 9:59 p.m. If you only match the Powerball number alone, you can still win $4.

This story was originally published August 23, 2017 at 12:00 PM with the headline "If you win the $700M Powerball game, here’s what to do — and how much you’ll actually get."