On December 24, 2025, someone’s life changed overnight. A winning Powerball ticket was sold in Cabot, Arkansas, claiming a $1.817 billion jackpot, the second-largest lottery prize ever.
At 1 in 292 million, the odds of winning the lottery are extraordinarily rare. If you are holding the winning ticket, it is completely natural to feel overwhelmed. Shock, disbelief, excitement, and anxiety often occur simultaneously when something so life-altering happens so suddenly.
Before any decisions are made, it is important to pause and understand what this windfall truly represents.
Understanding the real value of the prize
The advertised jackpot of $1.817 billion assumes you opt for the annuity, paid out over 30 years. If you elect the lump-sum cash option, the payout is approximately $835 million.
But Uncle Sam wants his cut, to the tune of $309 million (assuming no major charitable giving or other tax strategies to help offset the windfall). Then, the great state of Arkansas slices off roughly $49 million. That leaves the winner with roughly $477 million.
I think we can all agree this is still an amount of money that if managed correctly can provide financial security for many generations and lifetimes.
Five steps to take before and after you claim the prize:
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- Protect your privacy and limit publicity – Resist the urge to share the news right away. Tell only a very small circle of trusted family and friends. Consider temporarily deactivating social media accounts and changing phone numbers. Avoid media appearances or public announcements before you have a plan in place.
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- Assemble your advisory team before coming forward – Per Arkansas state lottery rules, the winner has 180 days to claim the jackpot and can remain anonymous for up to three years, unless they are an elected official or a close relative of an elected official. This gives you time to build a professional team that includes a CPA or tax advisor, an estate planning attorney, and a fee-only investment advisor or CERTIFIED FINANCIAL PLANNER™ professional. Interview multiple advisory firms. Ask these questions. Understand the terms fee-only and fiduciary. Sign the ticket, make copies, and store the original securely, preferably in a safe deposit box.
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- Understand the role of purpose and structure – Financial independence doesn’t eliminate the need for purpose in life. Many lottery winners continue working in some capacity, go back to school, volunteer, or engage in meaningful projects. Too much unstructured leisure can strain relationships and lead to financial and emotional difficulties over time. Research past lottery winners’ stories to see what worked for them, and more importantly, what didn’t.
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- Be intentional about legacy – A sudden windfall presents an opportunity to think about the impact you want to have. Charitable giving—whether through a donor-advised fund or a private foundation—may align with your values. Giving money to friends and family members requires clear boundaries and planning.
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- Learn the importance of saying “no” – One of the most difficult skills to develop for the suddenly wealthy is setting boundaries. Loans to friends or family should generally be viewed as gifts to avoid strained relationships. Larger wealth does not require larger or ongoing gifts.
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In closing, winning the lottery can be either a blessing or a burden, which is often determined in the first six months after the winner steps forward. If you are the winner, congratulations. Life will never be the same. With sound professional guidance, it’s possible to preserve wealth while living a life full of experiences and generosity.
If you’d like to learn more about how Pittenger & Anderson can help you manage your winnings in a way that supports the life you want to live, please connect with us or call our office to speak with one of our Senior Advisors: 402-328-8800 or 1-800-597-1588.
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Pittenger & Anderson, Inc. makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.
Pittenger & Anderson, Inc. does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Additionally, the information presented here is not intended to be a recommendation to buy or sell any specific security. To learn more about our firm and investment approach, check out our Form ADV.
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