What to do if you win the lotto jackpot

by Jon Carlos Rodriguez, ABS-CBNnews.com

Posted at Jan 21 2014 02:28 PM | Updated as of Jan 22 2014 08:30 PM

MANILA – Previous winners of the multi-million peso lotto jackpot prize have the tendency to squander their winnings in a short period of time due to lack of planning, according to a financial adviser.

Before even thinking of listing down items to buy, Dr. Francisco Colayco said lotto winners should take a step back and assess their current financial situation.

“Walang gagastusin muna, step back at pag-isipan. Hindi pwede ‘yung bigla,” he told dzMM on Tuesday.

He said winning bettors should first determine the value of their assets and how much they are in debt.

“Madali lang ‘yun, more or less lang, kung ikaw ay positibo o negatibo,” he said.

Colayco noted that when the amount of debt is determined, it does not mean that all of the winnings should be spent to pay it off.

He said debt with higher interest, such as credit card debt, should be prioritized.

“Hindi naman dapat lahat bayaran, may mga utang na maganda i-maintain as utang,” he advised.

When debts with high interest rates are settled, you must then fill what Colayco calls the “protection basket.”

This basket includes emergency funds and insurance to protect you from emergency situations like calamities or illnesses.

With debts and emergency funds covered, it is only then that the “lifestyle basket” should be planned for, said Colayco.

“Ide-define natin ‘yung lifestyle na gusto natin na hindi tayo mahihirapan i-sustain,” he said.

He added that some lotto winners tend to lose all their winnings because they choose a lavish lifestyle that only lasts for a short time.

“Ang daming ganyan, pagkatapos ng 3 taon o 4 na taon, pinuputalan na ng kuryente. Hindi tama,” he said.

On Monday, a lone bettor won the P155,401,636 jackpot for the 6/55 Grand Lotto draw, the Philippine Charity Sweepstakes Office (PCSO) said.

PCSO said lucky bettor picked the winning numbers 02-38-32-19-08-03 to win the prize worth P155,401, 636.

The identity of the winner was not disclosed for security reasons.