By Carolyn Webb
You’ve got a much higher chance of being struck by lightning than winning the looming $150 million Powerball draw.
Still, the improbability of striking it rich on Thursday night hasn’t stopped millions of people dreaming about what they would do with all that dosh.
Psychologist Carly Dober at McFadzean Super Lotto outlet in Reservoir, in Melbourne’s north.Credit: Justin McManus
Ahead of the third-biggest jackpot in Australian history, psychologist Carly Dober isn’t immune.
“I’d buy my mum and my siblings houses, I’d take my family, husband and close friends on holiday,” she said.
“I’d donate to social and environmental causes, take one or two years off work, then go back to work a couple of days a week.
“I’d spend my other days doing things that make me happy, such as yoga and dance classes, and surfing a lot more than I’m able to now.”
But say your dream really comes true, what next?
Dober, who runs her own practice and is also the director of the Australian Association of Psychologists, said a Powerball winner might also need help coping with a division one windfall.
Turmoil can follow elation, she said, due to such a big change in someone’s life.
“Understand it might be a bit of a rollercoaster. Try your best to keep your sleep and routines up, exercise, eating well and socialising with friends and family who you can be honest with,” Dober said.
Dober said winners worry about friends and relatives seeing them as a “walking dollar sign” and asking for money.
“They might repeatedly ask you and push those boundaries and that can be difficult, so I’d encourage people to talk to trusted family or friends about this, to get some support about maintaining those boundaries,” she said.
The $150 million Powerball draw takes place at 7.30pm AEST on Thursday.
Stephen Woodcock, an associate professor of mathematical sciences at the University of Technology Sydney, said the probability of winning the lot on Thursday was 134,490,400 to one.
“You are vastly more likely to be struck by lightning than win,” he said.
Woodcock said he wouldn’t recommend that people buy a ticket, but he could see the appeal.
“It is most people’s only ever, highly unlikely, chance to see $150 million or so in their lifetime,” he said.
Financial planner Kim Siauw, a director at Wealth Architects, advised big winners not to rush into major financial decisions.
Siauw said he would plan a strategy based on what the winner valued.
“What’s important to them, what their goals and values are in life, where they want to live and how they want to provide for their family,” he said.
Siauw also advised winners to seek guidance on how to structure assets for tax, protect themselves from creditors and family disputes, and to get investment advice.
John Manserra, a senior financial adviser and a director at Apex Advice, said the most important thing a winner could do was keep their head.
“If it was me spending that money, I’d carve a few million dollars for myself, buy a holiday house in south-east Queensland and have bit of fun,” he said.
“But then I’d put my responsible brain on.”
Manserra said he would advise setting up a private ancillary fund that allows the investment of money tax-free, while donating 5 per cent to charity. He would also set up a family trust and put most of the money into that, then invest in growth assets such as shares and property.
“I’d take the income that’s generated through rent or dividends, live off that and then leave capital invested for future generations, that you wouldn’t touch,” he said.
Credit: Matt Golding
The more passive income you could generate, the better.
“I’d probably only carve off a couple of million dollars for fun, the rest would go to growth,” Manserra said.
“If you swim between the flags – and not speculate on weird assets or mining investments, if you invest in good quality things – you’re going to get a pretty good outcome without even trying.
“It’s about having a get-rich slow mindset, not a get-rich quick one.”
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