In Massachusetts, the annuity payment is a little less, the first year is around $22 million, and it ends with a payment of $90 million.Īccording to Axios, no winner has chosen the annuity option since 2014.ĭeciding between the lump sum and the annual payment comes down to whether or not you feel confident managing almost a billion dollars. For example, in California, your first-year annuity payment would be around $23.3 million after federal taxes, and you would end up with an annual payout of more than $96 million after federal tax by year 30, according to the website Lottery Critic. The advertised jackpot total is calculated by adding up those 30 years’ worth of annuity payments.ĭepending on federal and state taxes, your first-year payout will differ. If you take the annuity (annual payments), you’ll get 30 payments over 29 years with a 5% increase added each year. The $2.04 billion jackpot-the largest one yet-has a cash value of $997.6 million. Your first-and perhaps most critical-decision, says Robert Pagliarini, president of Pacifica Wealth and author of Sudden Wealth Solution: 12 Principles to Transform Sudden Wealth Into Lasting Wealth, is whether to take all the money at once or get it in an annuity paid over time. To Lump Sum or Not to Lump Sum–That Is the Question But some of the most important financial decisions you’ll make come right after you win, and having trusted financial experts in your corner can make all the difference.įrom how to get the money to who to tell, here are some big questions you’ll have to answer if you win. ![]() It’s less likely that you’ve drafted your fantasy financial team. If you play the lottery regularly, you have almost certainly concocted ways to spend the money: stunning beach houses, world-class vacations, new cars and even not-so-sexy expenditures like paying off debt. While the chances of winning the lottery are slim, the dream of winning is still something many Americans fantasize about. Castro opted to take the life-changing windfall in one lump sum of $997.6 million, according to the California Lottery. ![]() While he didn’t want any personal information divulged, California public disclosure laws allow a lottery winner’s name to be released as a matter of public record. Three months after snagging the entire record-breaking $2.04 billion Powerball jackpot on November 7, the single winner was identified as Edwin Castro.
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