If You Just Won the Lottery, Avoid These 4 Mistakes

Government-regulated lotteries have existed in Canada for more than five decades. Over that time, there have been many big winners and many smaller winners. If you are fortunate enough to be one of the former, it will, without doubt, change your life. The real question is whether that change will be for the better or the worse. This often comes down to the decisions you make in the first six months of winning.

We have helped many individual and family lottery winners successfully navigate this monumental, life-changing event. This experience puts us in a position to offer insight into what you should, and shouldn’t, do if you ever find yourself in a similar situation. We have seen both the euphoria that lottery wins can bring to families as well as the stress and strained relationships that a win may cause. The goal of this article is to walk you through what not to do if you ever happen to be the person holding the big cheque for the TV cameras one day.

An important caveat to keep in mind is that money doesn’t magically change who you are, but it can amplify aspects of your character that were already present, like responsibility or impulsiveness. Following are four key, but regrettably common, mistakes that many people make after a massive windfall—and the countermoves to consider, so your “dream come true” doesn’t become a living nightmare.

Mistake #1 – Making your lottery win too public

In Ontario, lottery winners are required to make some form of media announcement, which inevitably attracts attention from family, friends and strangers eager to share in the good fortune.

While you may not be able to avoid all publicity, you can avoid fanning the flames. Don’t go above and beyond with extra media interviews or big public declarations. Follow the adage of most hockey players and be as boring as possible in the mandatory interviews that you do participate in. The wider your news spreads, the longer you’ll be fending off “opportunities” to help fund someone else’s dream or scam with your windfall.

What to do instead:

Before claiming your prize, confide only in those who truly need to know, like your immediate family and a core team of professional advisors (e.g., lawyer, accountant, financial advisor). Additionally, consider limiting your public profile and eliminating a social media presence to make it harder for others to find your personal information after your win is made public. The goal is to share the news on your terms and to the least extent possible, leaving the rest of the world to wonder why you suddenly seem more relaxed on Monday mornings.

Mistake #2 – Making major life decisions without a financial plan

Another common mistake lottery winners make is rushing into permanent life changes without a solid plan and clear understanding of what they can afford.

Let’s say, for example, you and your spouse are 45 years old, and six months ago you won the lottery. In that short time, you’ve both quit your jobs, bought a $3,000,000 CAD house in an upscale neighbourhood, purchased two new cars, dined regularly in upscale restaurants, moved your children to private schools, and started an annual tradition of taking your family and close friends on a lengthy vacation to Mexico. Each year, this lavish lifestyle can easily cost in excess of $350,000 CAD after taxes.

If you want to maintain that lifestyle for the rest of your lives (and we typically assume age 95 for financial planning purposes), you would have needed a starting investment portfolio of approximately $12 million CAD today. That’s based on a 5% return on investments and a 2% annual increase in spending due to inflation. In other words, if this is the life you truly want to live, make sure your lottery win exceeds $12 million CAD before you start making these types of changes—and even then, remember that other unforeseen factors may arise that could increase your required starting amount.

What to do instead:

Hit pause for at least six months (ideally a year) before making big-ticket decisions. Use that time to work with a financial planner to test whether your lottery reality can actually support your dream life and desired manner of living. If it doesn’t, it’s far easier to adjust now than to face the emotional and financial pain of downsizing later.

Mistake #3 – Making financial promises you can’t keep

For many lottery winners, the biggest emotional challenge isn’t what to do with the money, but rather how the money may profoundly change relationships. Winning the lottery can be a deeply isolating experience where your friends and family might treat you differently. This is not always out of malice, but is often because their expectations change, sometimes without either of you even realizing it.

Consider that, if the people closest to you believe they’ll share in your good fortune and that doesn’t happen (or doesn’t happen in the way or to the extent they had hoped), disappointment and resentment may creep in. And when relationships you’ve relied on for years start to feel strained, it can leave you feeling unmoored at exactly the moment you need a trusted support system.

What to do instead:

Be transparent about your situation. A simple “we’ve been advised not to make any commitments until we’ve done proper planning” sets a respectful boundary and keeps expectations realistic.

When it comes to requests for money or business investments, lean on your advisors. We’ve reviewed countless proposals from the friends and family of lottery-winning clients. Being a neutral third party allows us to declare, “This isn’t the right fit for my client’s portfolio,” while hopefully maintaining the client’s personal relationship with their friend or family member. By relying on your advisors to be a gatekeeper and weigh in on proposals, you can distance yourself from decisions and protect your finances while preserving your valued relationships.

Mistake #4 – Trying to do it alone

Sudden wealth is like being dropped into the middle of a foreign country where you don’t speak the language. You might have a guidebook, a translation app and some good instincts, but without a local guide you could miss important nuances, make avoidable mistakes, and end up in situations you don’t fully understand until it’s too late.

Yes, we live in a world where you can Google anything, watch investing videos on YouTube, and even ask ChatGPT for financial tips. However, sudden wealth comes with complexities, including tax planning, legal structures, investment strategy and estate considerations that cannot be mastered overnight. Considering the size of most lottery wins, the stakes are simply too high to learn solely through trial and error.

What to do instead:

Find your “local guides,” a team of experienced professionals who have helped others navigate sudden wealth before. That typically means:

• A financial planner to chart your route and make sure your money lasts for the entirety of your journey.
• A tax expert to help you avoid hidden traps that could drain your winnings.
• A lawyer to protect your assets and make sure everything is structured properly.
• A family governance or wealth coach to help you manage the human side of wealth, including the values, conversations and decisions that will shape your legacy.

The right guides can help you avoid wrong turns, spot opportunities you might have missed, and arrive where you want to be without unnecessary detours or expensive mistakes.

The bottom line

Winning the lottery is one of the rare moments in life when the rules change overnight. What you do next will shape not just your finances, but your relationships, your lifestyle and your peace of mind for decades to come.

Use the first six months to slow down, surround yourself with the right people, and make informed decisions. Think of your winnings not just as money, but as the seed of a future you can either grow or squander. How you nurture it now will determine whether it becomes a powerful legacy or just a fleeting windfall.

Corient can help you manage the financial and investing aspects of a significant lottery win, so reach out today if you’ve landed the big prize.

ABOUT THE AUTHOR

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Hypothetical examples are provided for illustrative purposes only and are not guarantees of future results. Assumptions are not predications and may not reflect actual market performance, inflation rates, tax considerations or changes in personal circumstances. Consult with a qualified professional regarding your scenario and the then-current applicable laws and rules. 

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 “Corient” is a business name that is used by Northwood Family Office Ltd. (Northwood). Northwood is registered as a portfolio manager and exempt market dealer in all Canadian provinces and territories. Northwood is a multi-family office offering integrated planning, investment management and wealth administration services to its clients. For a complete discussion of the services offered by Northwood, please request a copy of the Relationship Disclosure Information, including a copy of the privacy policy, complaints policy and code of ethics.

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CAN5205844 – February 2026