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Invest conservatively and guard your relationships - that's the experts' advice to winners of tonight's $25 million Lotto Powerball jackpot.
As Lotto sales outlet staff prepare for the last hectic day of jackpot fever, Herald financial columnist and author Mary Holm says turmoil in the financial markets calls for smart thinking on the winner's part.
Winning NZ Lotteries' biggest ever Powerball won't cure all worries.
The first act, she said, is to pay off any debts or mortgages and secondly, to invest half or three-quarters of the rest in government bonds or high-quality corporate bonds.
After tax, the interest on a $10 million investment in government bonds should return about 5 per cent. This would give $400,000 annually, or $500,000 for corporate bonds.
"Then you could cover your expenses and you would know how much you had to spend each year until the bonds mature," said Holm.
"It means you don't have to rush into making decisions."
She recommended also putting some of the prize into shares and property at six-month intervals to take advantage of low markets that might not have reached bottom.
"But the big worry in the end would be that you keep your friends."
The need to get professional advice on not only where to safely put your money but also to avoid relationship breakdowns is emphasised by financial adviser and author Lisa Dudson.
"Put it in the bank and take a deep breath and take the time to get decent advice," she said. "There are significant psychological issues with winning Lotto at that magnitude. Some people can't deal with suddenly having a lot of money.
"Spend some time with a psychologist or a life coach just to figure out how your life is going to change and how you are going to deal with it."
Restraint on ticket spending is being urged by NZ Lotteries chief executive Todd McLeay.
About half a million more tickets are sold in a big jackpot week. The minimum ticket price is $4.40, which buys four lines of Lotto and Powerball on a self-select coupon.
Forming syndicates with friends and workmates is another way to win, though the odds of winning Powerball are 1 in 38,383,000.
"A survey of big winners we undertook in mid-2007 shows that 57 per cent of winners gave money to charity while 92 per cent gave money to their family," Mr McLeay said.
Tonight's Lotto draw will be broadcast live on TV2 at 8pm.
Powerball must be won after it reaches $30 million.
