4 Keys to Hitting the $1.28 Billion Mega Millions Jackpot
1. Breathe Instead of impulsively rushing to lottery headquarters to claim your prize, take a deep breath. You have time to claim your prize – from three months to a year, depending on where you bought your ticket. “Pause before making big decisions,” Irwin said. “This is the calm before the chaos.” 2. Protect your …
Instead of impulsively rushing to lottery headquarters to claim your prize, take a deep breath. You have time to claim your prize – from three months to a year, depending on where you bought your ticket.
“Pause before making big decisions,” Irwin said. “This is the calm before the chaos.”
Experts generally recommend signing the back of the ticket, taking a photo with the valuable piece of paper, and then storing it safely in a safe or safe at your bank.
However, you should first make sure that you know the rules for claiming your winnings in the state where the ticket was purchased.
If you bought it in a state that requires public disclosure of the winner’s name, you can claim the prize on behalf of a trust or other legal entity, thereby hiding your name from prying eyes.
Also, share your windfall with as few people as possible, Irwin advises. News has a way of spreading, and long-lost friends or relatives—or scammers—may show up at your doorstep.
“Privacy is key,” Irwin said. “This keeps both you and your family safe from scammers or others who might start preying on you.”
There are quite important financial decisions ahead of you, so you should seek help from a team of professionals. This team should include an experienced attorney, financial advisor, tax advisor and insurance expert.
To begin, you will need to decide whether to accept your prize as a reduced lump sum or as an annuity of 30 payments over 29 years. Either way, the IRS will take a bite before the money reaches you.
The cash option that most winners choose for this $1.28 billion jackpot is $747.2 million. BUT mandatory 24% federal tax withholding by that amount would reduce that amount by approximately $179.3 million.
However, since the maximum marginal rate is 37%, the winner must expect to be much more indebted at the time of taxation. In addition, government taxes are usually withheld or payable depending on where you live and where the ticket was purchased.
If you’ve been working at your job all day and are considering quitting, it’s worth considering the long-term consequences of doing so.
“If you used to work, there will be changes in your daily life,” Irwin said. “Think about how you will spend your days and how you can make sure you still have a purpose in life.”
Meanwhile, the Powerball jackpot is estimated at $170 million for Saturday’s draw. Your chance of winning the top prize in this game is approximately 1 in 292 million.