What to Do if You Win the Powerball Lottery
If you are living in one of the 44 states that have the Powerball Lottery (or Washington, D.C., Puerto Rico, and the U.S. Virgin Islands), there is a good chance that you have bought at least one Powerball ticket. You may have also been buying them for friends and family that are not living in one of those states.
Why all the interest in Powerball right now? Well, for the benefit of those few people who may have been living in a cave, the lottery is up to $1.4 billion, the largest lottery payout in the history of the world. If you were the single winner and wanted all of the money right now, you could get a cash payment of $868 million. If you have less extravagant needs and can live on a mere $20-30 …show more content…
If you have self-control, the lump-sum is the better choice when it comes to collecting your winnings. For those who invest the money, you can end up with almost twice as much in interest over twenty years as you would by taking the installments. With a payout as large as this one, this amounts to tens of millions of dollars.
2. If you do not have a plan or have no self-control, the installment option may be a better option. It helps to remember that most million dollar lottery winners end up just as broke as they were before winning the lottery. An installment payout will ensure you don't blow through your winnings in less than 30 years.
3. Don't forget about the taxes. Since you will be in the highest tax bracket regardless of your payout option, you will be giving just under half of your winnings to the government. This will still amount to many hundreds of millions, but you will not be joining the billionaire club with this win alone.
4. If you are married, you can transfer your money to your spouse. If you are single it's a different story for your heirs. They may lose most of it to the government in the form of even more
If you are living in one of the 44 states that have the Powerball Lottery (or Washington, D.C., Puerto Rico, and the U.S. Virgin Islands), there is a good chance that you have bought at least one Powerball ticket. You may have also been buying them for friends and family that are not living in one of those states.
Why all the interest in Powerball right now? Well, for the benefit of those few people who may have been living in a cave, the lottery is up to $1.4 billion, the largest lottery payout in the history of the world. If you were the single winner and wanted all of the money right now, you could get a cash payment of $868 million. If you have less extravagant needs and can live on a mere $20-30 …show more content…
If you have self-control, the lump-sum is the better choice when it comes to collecting your winnings. For those who invest the money, you can end up with almost twice as much in interest over twenty years as you would by taking the installments. With a payout as large as this one, this amounts to tens of millions of dollars.
2. If you do not have a plan or have no self-control, the installment option may be a better option. It helps to remember that most million dollar lottery winners end up just as broke as they were before winning the lottery. An installment payout will ensure you don't blow through your winnings in less than 30 years.
3. Don't forget about the taxes. Since you will be in the highest tax bracket regardless of your payout option, you will be giving just under half of your winnings to the government. This will still amount to many hundreds of millions, but you will not be joining the billionaire club with this win alone.
4. If you are married, you can transfer your money to your spouse. If you are single it's a different story for your heirs. They may lose most of it to the government in the form of even more