I advise lottery winners. People are shocked by how little guidance you get - here's what to do if you win the Powerball.

The Powerball jackpot has reached $1.6 billion. There's another drawing on Monday night. After winning the jackpot, lottery winners get little advice on how to spend their money. Here's what Wells Fargo's Emily Irwin recommends you do if you win the Powerball jackpot. Households across the US will be awaiting Monday night's Powerball drawing with fingers crossed, hoping it will deliver a life-changing windfall. Players have a shot at the fifth-largest jackpot in US history - an estimated $1.6 billion. Match all six numbers and the winner faces a huge decision from the offset: opting for an annuitized prize estimated at $1.6 billion paid out over 30 years, or taking a lump sum payment of about $735.3 million instead. That choice is just one of many lottery winners must make, often with little to no support. "Many people tend to overlook this, but after winning the lottery, you're essentially on your own," Emily Irwin, a Wells Fargo advisor who guides lottery winners on how to spend their money , told Business Insider in a 2023 interview. Here's what Irwin recommends if you beat the 1 in 292.2 million odds and end up holding Monday's winning Powerball ticket. Should you choose lump sum or an annuity? Irwin told Business Insider that this decision should hinge on two factors: the financial implications, mostly around tax, and how you personally tend to handle money. "If you consider the financial and tax side, taking the lump sum is often advantageous," she said. "While you may face higher up-front income taxes, you gain greater long-term control over how your money is invested, and you have immediate access to your funds." Annuity payments, by contrast, tend to spread out over decades. In the case of Powerball, winners receive one immediate payment followed by 29 annual payments that increase by 5% each year. "The advantage here is that it provides peace of mind," Irwin said. "If you're the sort of person who has a dollar in your pocket and you're going to spend $1.50, having that annuity and the guarantee over three decades can be a reassuring safety net." For lottery winners, a team of advisors is key Because lottery winners are often left to their own devices, Irwin recommends assembling a team of advisors as soon as possible. The team, she said, should include an attorney, an accountant, an investment advisor, and a philanthropic advisor. "It's not as straightforward as flipping through the yellow pages and randomly selecting somebody," she said. "You must carefully consider experts specializing in high-net-worth and ultra-high-net-worth tax planning." Irwin also suggested interviewing several candidates for each role to make sure the relationship is a good fit, since winners will often be working with these advisors for years. What should you do with lottery money? "I think having a diversified portfolio and reviewing it with your financial and investment advisors is very important," Irwin said. "Typically, we see some mixture of short-term available assets immediately, such as cash or cash equivalents, along...

Preview: ~500 words