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Powerball $150m draw: Financial advisor's hit list of things you could do with the winnings

James Wrigley outlined the four areas you could put your money to ensure you're set up for life.

An Aussie financial advisor has revealed what he would do if he won tonight's $150 million Powerball. There are loads of routes you could go down with that amount of money if you were the sole winner of the third-largest prize ever offered by an Australian lottery game.

But James Wrigley has outlined his hit list of what would be the most responsible things to do with the winnings first, before the splurging begins. The Financial First expert said your money could last for "generations" if you get the right combination.

He revealed you should target property and superannuation, and also set up a family trust and a private ancillary fund.

Financial advisor James Wrigley next to a piece of paper with writing on it
Financial advisor James Wrigley outlined the four areas he would put the $150 million Powerball winnings. (Source: Instagram)

Do you have a story? Email stew.perrie@yahooinc.com

Wrigley said the first thing he would do with the money would be to buy a nice new home for his family.

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The median house price in Sydney hit a record high recently and it's now a little more than $1.6 million. While that might be way out of reach for many households, having $150 million in your bank account would be able to get you nearly any home in the country.

However, you would need to keep saving for a while if you wanted a chance to get the keys for the home set to break the Australian record for the most expensive home sold in the country.

Aussie Home Loans founder John Symond has put his 2 Wingadal Place home on the market and there are predictions it could fetch as much as $200 million.

Wrigley said sorting out your superannuation contributions would be the next step and he revealed it comes in two forms: concessional and non-concessional.

He explained he would make $110,000 non-concessional contributions - the current annual cap - to both his and his wife's super before June 30. Then in July, he would put $360,000 in both super accounts.

Concessional contributions are deposits of money that haven't been taxed yet, while non-concessional contributions come from money that has been taxed. Examples of concessional contributions include compulsory superannuation payments from your employer and salary-sacrificing arrangements.

"I'm going to make sure that both my wife and I maximise our concessional super contributions and take advantage of the carry forward concessional contributions as well, to get more money into superannuation," he said.

"Every year going forward, I'll continue to maximise these concessional contributions, and every three years maximise these non-concessional contributions until we're capped out of making non-concessional [contributions]."

The concessional contributions cap is the maximum amount of before-tax contributions you can make to your super each year without them being subjected to extra tax. From July 1 this year, the concessional contributions cap is $30,000.

This is where it gets a bit juicier.

A private ancillary fund (PAF) is a type of charitable trust, which can offer a way to manage your philanthropy. You can receive an immediate tax deduction on the money you put into the fund and you can use that cash to give to the charities of your choice.

As a minimum, Wrigley said you have to give away 5 per cent of the capital to charities each financial year.

The Financial First expert explained this is where the bulk of the $150 million would go.

"Inside of the family trust, I'm going to have a range of shares and property investments from which the income will be distributed out to myself, my wife, my family, whoever it is that I want to choose," he said.

"But it's the income from these assets that we would spend each year rather than the spending of the capital.

"If you just live off the income, the capital in here will last generations."

So while you might be tempted to chuck the Powerball winnings into your main bank account and slowly chip away at it, these are a few ways to make sure it won't disappear in an instant.

Because tonight's draw is so large, The Lott spokesperson Matt Hart said as many as half of Australian adults were expected to have an entry.

“While Australian lotteries have been operating for more than a century, there have only been five draws that have offered a jackpot of $150 million or more,” he said.

“If just one person takes home this $150 million prize on Thursday night, they’ll make history by becoming the nation’s biggest-ever individual lottery winner.

There are a few ways to play the lottery and there are many out there who will use the same numbers time and time again because they think they're "lucky".

But Hart revealed "lucky numbers” tend to be birthdays, meaning you could have to share your prize with others who picked the same digits.

“With any lottery game, we often see more division one winners when the numbers drawn are 31 and under, and that’s because a lot of people do mark their entries with family birth dates and so forth,” he said.

“On the other side of that, if there are a couple of numbers above 31, then we don’t see many division one winners because of that same reason. It’s also not uncommon for numbers over 31 to be drawn.”

- with NCA Newswire.

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