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The Aftermath of Winning a Big Lottery Prize

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The Aftermath of Winning a Big Lottery Prize

Winning the lottery is a dream everyone’s had at least once in their lifetime. With various types of lottery tickets out there and the slim chance that it could happen, what would you do if you did win? This article will walk through the aftermath of having a winning ticket and the various choices you’ll need to make.

Winning the Lottery and Cashing Out

Watching the Florida lottery results and checking if you win may one day result in a favorable outcome. Winning the millions listed as the jackpot may not be what you think. When you claim your winning ticket, you’ll have two options for cashing out that ticket. If you’re checking results, it may be worthwhile to take some time and consider your options before cashing out.

Lump Sum

Taking your lottery winnings as a lump sum is one of the easier ways to get as much the money as possible. However, you won’t get the ticket’s full value when claiming the lump sum. Lump sum payments are not at a set value or percentage, making the value hard to calculate beforehand. This option’s value is determined by the amount required to purchase the securities that would fund the annual payment option on the day of the drawing.

A lump sum will also result in a higher taxation rate, further reducing the total amount you take home. However, the benefit of this is that you only need to report your lottery winnings once.

Yearly Payment

Taking a yearly payment option can seem wiser, as, throughout 25 to 30 years, you’ll be paid the full jackpot value. The time for an annual payment option to finish depends on the lottery game you play, with the standard being 30 years.

This plan starts with an initial sum and then 29 other payments each year, raising 5% in value annually until the final amount is paid. The plan often keeps the money longer as you can’t spend it all at once.

However, the plan has a negative impact when it comes to taxation. You must report the lottery winnings each year for the plan’s duration. This taxation may be slightly more than what you’d pay initially on a lump sum winning but is a lower percentage of the total value overall.

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Will You Keep It All?

There are a few things to consider when you win the lottery, especially when it comes to keeping the money for more than a few years. More than half the winners who’ve had millions have lost or used that money within the first five years.

Hire Experts

Hiring experts will help ensure that you do things correctly. Getting an accountant, a financial advisor and a lawyer is key to ensuring you have peace of mind and make better decisions with your millions. Having these experts will help prevent issues you may have with fraud and legal disputes over the money and may result in you keeping that money just a bit longer, if not growing it.

To Quit or Not to Quit

Quitting one’s job after winning the lottery is a common trope in the media, and who can blame it? However, keeping your job for a while will help you develop a plan and offer some social and economic stability during the chaos. After all, the lottery may not be enough to retire on.

One Day is One Day

Winning the lottery is a dream that comes with every ticket purchased. While the aftermath of winning may seem chaotic and present a handful of difficult choices, it’s not enough to stop anyone from playing. If you win, making wise choices and getting expert advice is the key to ensuring you still have the money after one year.

 

 

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