VCU news

By Brian McNeill

With tonight’s Powerball jackpot at a record-breaking $1.5 billion, one or more lotto players may be on the verge of becoming filthy rich.

Steve Danish, Ph.D., a professor emeritus of psychology in the College of Humanities and Sciences, has studied the impact huge windfalls of cash have had on past lottery winners and has counseled previous jackpot winners.

Danish offered the following advice to tonight’s potential Powerball winner:

“Even though you will be in shock after winning, eventually you will realize that the money is yours — that you own it (along with the federal and state governments). As a result, you probably have many people wanting to give you advice about what to do with it. Some is advice you have sought; much is unsolicited. For many of you the advice, and to some extent the money, makes you confused and guilty and that is very consistent with the way that many lottery winners and others who have received a windfall feel. You may be asking yourself, what do I want to do with it? What should I do with it?

“These feelings are in sharp contrast to what many winners say after right after winning — ‘It is not going to change my life’ — however, that is not true. Most winners feel that their lives are not the same, and for many not as happy. In fact, the top five worst feelings commonly experienced by lottery winners are:

• Surprised (that you will never see $400,000 of every million dollars, due to taxes).
• Guilty (that you can't make everyone else's dreams come true).
• Invaded (when most of the people you know and many that you never even heard of feel they have the right to know all about you and tell you what you should do with your money).
• Threatened (when people think they can intimidate, swindle, or force you to share your winnings with them).
• Confused (from trying to understand all the fine print on the winnings contract while trying to figure out what to do with your money and differentiating between people who will help you and those who just want to take advantage of you).

 

The truth is that it is a lot easier to dream it than to live it. 

“The truth is that it is a lot easier to dream it than to live it. Although you may have spent a lot of time playing lotteries, winning it is not the hardest part —  living with it and knowing what to do with it is. The reason why it is so hard is that you have probably not come to terms with you. You don’t know what to do with you — your dreams, goals, plans and future. Unless you have clear plans for your life before you play, winning will make your life very much harder.

“So before the winning is announced, sit down and think about what you will do with almost a billion dollars after taxes. Realize your life will change, you will lose some friends you have and gain some new friends (some of whom you won't want). You have a lot of money to spend, and save, and donate. To whom, how much and why?

If you win:

1. Sign your ticket and put it in a safe-deposit box in a bank.
2. Find a lawyer.
3. Find a financial planner.
4. Don't tell people or the lottery until you have a plan.
5. Be prepared for your life to change.”

 

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