Powerball’s $1.7 billion jackpot may create a new ultra‑rich winner, but financial planners say what happens after the drawing can matter more than the winning numbers. They describe a consistent set of mistakes that can quietly turn a once‑in‑a‑lifetime windfall into a long, public mess.
Rushing big decisions
Many experts warn that acting too quickly — quitting a job, claiming the prize immediately, or committing to big purchases — is one of the most damaging errors. Articles in outlets including CNBC, NerdWallet, and USA Today emphasize slowing down, taking time to process the shock, and making no irreversible decisions until a plan is in place.
A related misstep is choosing between the lump sum and annuity on instinct instead of analysis, even though that decision locks in tax timing, investment options, and how long the money is likely to last. Financial writers note that many winners default to the lump sum without modeling scenarios with professionals and understanding that, after taxes, the headline $1.7 billion quickly shrinks.
Going public and losing privacy
Coverage in CNBC highlights that bragging about your win on social media or talking openly about it can invite lawsuits, scams, and constant money requests. Advisers repeatedly stress “keep it quiet” and, where allowed, explore ways to claim through a trust or remain anonymous to avoid becoming a target.
Experts also point out that winners often underestimate the emotional toll of overnight fame, which can strain marriages, friendships, and even personal safety if boundaries are not set early.
Skipping a professional team
A recurring theme across NerdWallet, Business Insider, and other outlets is that trying to DIY a nine‑ or ten‑figure fortune is a costly mistake. Financial planners urge winners to assemble a small, vetted team — typically an attorney, a tax professional, and a fiduciary adviser with experience in sudden wealth — before claiming the prize.
Winners also get into trouble when they rely on friends or relatives who “know about money” instead of credentialed experts, a pattern cited in guidance from Northwestern Mutual and others on working with lottery clients.
Overspending and assuming the money is infinite
Business Insider’s reporting on advisors who work with lottery winners notes that many clients behave as if the balance can’t be depleted, only to burn through wealth with multiple mansions, jets, and speculative investments. Experts describe unchecked lifestyle inflation and “spend, spend, spend” behavior as one of the most common paths to regret, especially for lump‑sum recipients.
Financial outlets also stress that winners often fail to set a sustainable withdrawal rate or diversify, ignoring the reality that the money is finite and that even ultra‑large fortunes can erode through taxes, market volatility, and ongoing costs like property taxes and maintenance.
Poor boundaries with family, friends, and causes
Advisers interviewed by Northwestern Mutual and others say another frequent mistake is giving without a plan: ad‑hoc loans, endless gifts, and open‑ended promises that create resentment when the answer finally becomes “no.” They suggest that winners instead define a clear gifting and philanthropy framework up front — including who gets what and how much is reserved for charity — to avoid both over‑giving and relationship damage.
Experts further warn that feeling obligated to become a one‑person safety net or charity can derail long‑term goals and quickly consume capital, especially when requests are amplified by public attention.
Neglecting long‑term planning and purpose
Guides from major financial firms emphasize that many winners focus on immediate fantasies — houses, cars, travel — and neglect estate planning, debt strategy, and long‑term investing. Advisers recommend tackling basics like wills, trusts, and tax‑efficient structures early, so the windfall benefits multiple decades and, if desired, multiple generations.
Several profiles of past winners also point to a subtler mistake: not thinking about life after the headlines, which can leave people isolated, directionless, or vulnerable to bad ideas when the novelty fades. For the future holder of the $1.7 billion ticket, experts suggest that pairing technical planning with a clear sense of purpose could be the difference between a brief lucky streak and durable, generational wealth.
For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.
