With Powerball’s latest roll over reaching a staggering $148 million, that piece of paper in your purse or pants pocket a new life may be close at hand. But, before you pop open the magnum of champagne at the back of the refrigerator, give serious consideration to what life would be like on the other side of that gilded fence. What should you do first?
Pay Off Debt
With 28 percent of African American consumer debt standing at $20,000 and 12 percent at $40,000, it only makes sense to pay off credit cards, store accounts, school loans, car loans, garnishments — especially from health care situations, and in some instances, mortgages.
Maintain Durable Power of Attorney
As defined by NoLo, a “durable power of attorney that remains in effect if the person who made the document — called the principal — becomes incapacitated. If a power of attorney is not specifically made durable, it automatically expires if the principal becomes incapacitated.” This becomes even more important when combined families are in the periphery. The love you have for your second husband (or wife) may, or may not, transcend to your children. Who will look after your children’s interest should you become incapacitated? By the same token, any post lotto-winning marriages should have a prenuptial agreement. This is an adult conversation and has little to do with the depth of emotion or love you feel for a potential mate. Protect your children’s interest first.
Acquire a Certified Financial Planner, Lawyer and Banker
Ever wonder why many lotto winners fade into obscurity and are never heard from again? Nuts and kooks come out of the woodwork and claim you as family; you owe them money from second grade lunch period, or remind you that in 1976 they gave your father a jump start when his old Chevy conked out at the “filling” station. You “owe” them all, right? Wrong. Legal representation, a banker, and a certified financial planner are what you need (and maybe a detail of Pinkerton agents). The exotic dancer who attends night school at the local community college simply won’t due. That is, unless, you want to chance a similar outcome as the gentleman from Florida who suffered foul play after taking a $17 million payout on a $30 million winning ticket.
Pay It Forward
Rev. Solomon Jackson Jr. won over $259 million Powerball dollars in 2009. But, before his winning ticket was confirmed, he spoke with his attorney and longtime friend and made it clear that he wanted to donate to Morris College, an HBCU in Sumter, S.C., presented the students, faculty and administration with a check for $10 million dollars. During the presentation ceremony, the school president said such a gift was on par with the founding of the school in 1908, receiving its accreditation in 1978, and its membership in the United Negro College Fund the following year. The money was slated for new dorm construction, a new roof on an existing dorm, scholarship money, and further funding the institution’s endowment. Somebody, somewhere helped you make it to the window to buy that winning ticket. Maybe it was simply inspiration that they didn’t know they provided. Small amounts given to many or large ones to a few, karmic debt dictates that you “pay if forward.”
