With Wednesday’s Lotto jackpot soaring to a massive $45 million, many are already dreaming of luxury homes, fancy cars, and world travel. But before you start spending, financial experts say it’s crucial to know how to handle a life-changing windfall the right way. Reported by RNZ.
Tim Fairbrother, a financial adviser from Rival Wealth who has previously guided winners, says disbelief is often the first reaction. “Many people carry the winning ticket around for days because they can’t believe it’s real,” he notes.
Step 1: Secure Your Ticket
If you’ve played online, you’ll receive a prize claim form via email.
If you bought a physical ticket, take it to the store where it was purchased or head directly to the Lotto Head Office in Auckland. Winners usually meet Lotto staff in person, are offered champagne, and receive a booklet titled “This is not a dream.” It includes essential advice for managing newfound wealth.
Until you’re ready to claim, keep your ticket safe — somewhere secure and known only to you.
Step 2: Deposit the Money Wisely
Lotto recommends putting your winnings into an interest-earning savings account while you decide your next steps.
If you’ve hit the Powerball, Lotto can connect you with a bank representative to help you manage the deposit discreetly, without alerting your local branch.
Step 3: Decide Who to Tell
Think carefully before sharing the news.
Fairbrother warns, “Big money can change people — not just you, but those around you.”
When everyone knows, you may face pressure from friends, relatives, or strangers pushing investment ideas or handouts. Keep your circle small and your plans private.
Step 4: Make a Plan
Take time to decide what you really want. Work with a financial adviser, accountant, and lawyer to create a long-term wealth plan that covers tax, investments, and inheritance.
Ask yourself: What are my goals? What lifestyle do I want? How public should my win be?
From buying a dream home to investing in property or managed funds, experts stress one rule — don’t rush. Fairbrother says, “It’s a steep learning curve. Take it slow. There’s no need to spend or invest everything right away.”
Step 5: Understand Good vs. Bad Purchases
Some winners lose fortunes buying luxury cars and depreciating assets. Fairbrother recalls one person who spent millions on cars — only to be broke again within three years.
Remember: Investments grow; toys lose value.
Step 6: Pay Off Debt
If your win is smaller, consider using it to clear debt.
Paying off your mortgage or loans can instantly improve your financial stability and free up income for saving and investing.
Step 7: Be Smart About Gifting
Many winners want to help family, but Fairbrother recommends caution.
Instead of giving lump sums, consider interest-free loans payable on demand.
This approach protects the money in case of relationship issues or disputes later.
Step 8: Write or Update Your Will
Sudden wealth means estate planning becomes essential.
A clear, updated will helps prevent family conflicts and ensures your money goes exactly where you want it to.
Step 9: Know the Tax Rules
Good news — Lotto winnings aren’t taxed in New Zealand.
However, any income earned from your winnings (like interest or investments) may affect your eligibility for government benefits.
Final Advice:
Winning Lotto can change your life — but only if you manage it wisely.
Take a breath, seek professional help, and remember: securing your future is the real jackpot.
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