Saturday night, September 6, 2025, is a date that will long be remembered by two Powerball ticket holders, one in Missouri and the other in Texas. The prize they will split (sorry, winners, you will have to share) is estimated at nearly $1.8 billion (that’s 1,800 Millions of Dollars). After my initial disappointment that there were no Florida winners, my concerns fell to the winners’ situations.

Having spent 2+ decades as a professional financial advisor, I have learned firsthand about errors made, and dreams shattered, among people experiencing “Sudden Wealth.” While only one example of Sudden Wealth (inheritance is another), today we are talking about lottery winners. Over the years, we have had several direct experiences with Sudden Wealth (not our own), through our financial advisory business. Contact with Sudden Wealth presents a learning experience, one which I hope the new winners get educated very quickly.

Among non-winning lottery ticket purchasers, the worst cases we see (and hear about) are in a group that spends their working years “planning for a windfall” by purchasing lottery tickets. These people “know” that eventually their numbers will be the right ones, and a cushy retirement awaits. They are, of course, wrong, eventually becoming old, broke, and miserable.

Having had the unusual good fortune of getting involved with winners of staggering lottery prizes and substantial inheritances, I must also report that money can buy happiness, at least for the right people. The secret lies in planning for the windfall, once notification of its imminent arrival is received.

This may sound strange to some people, but the last action when becoming a large lottery winner should be making any public announcement. Media people will discover and divulge names and locations; you won’t have to do anything except stay quiet, while immediately finding and procuring yourself a safe environment. This satisfies the highest priority for winners – personal safety.

Second in priority (but also critical) is the security of the actual money. With each of Saturday’s winners expecting a pre-tax windfall of about $410 million (assuming they select the lump sum option), they need a plan for custody of funds with maximum security and insured coverage. Federal Income Tax owed by each will be in the 37% bracket, or about $152 million, but only 25% will be withheld. The balance is owed as of the next April 15, and must be preserved.

Finding a personal “Dream Team” of advisors is a necessity for any substantial Sudden Wealth recipients. We recommend starting with a qualified Certified Financial Plannerâ, operating as a fee-only Registered Investment Advisory, or RIA. Add a trusted attorney and CPA, and you have a good start.

Planning on sudden wealth, whether through gambling or inheritance, is never an acceptable retirement plan. But not planning for the windfall, once notified of its pending arrival, is equally dangerous.