How to Spend a Lottery Jackpot Wisely
Those who have won a lottery jackpot may have a hard time figuring out where to start and how to spend it. However, there are examples of lottery jackpot winners who spent it wisely. For example, one woman, Suzanne Mullins, won a lottery jackpot worth $4.3 million in Virginia in 1993. After winning the prize, she decided to split the money with her family, who agreed to pay her half annually in installments less than $50,000. The problem began when she borrowed money using the lottery installments as collateral. The debt quickly got out of control, and eventually she went into a state of deep debt. However, a recent change in lottery rules allowed her to stop making her monthly installments.
The jackpot is one of the biggest in US history. A recent Powerball drawing won a prize of $1.586 billion. Winners in Florida, Tennessee, and California shared in the prize. After he won, Schultz immediately called financial advisers and attorneys to help him handle the enormous amount of money. These people are experts in handling millions of dollars. Even if you don’t know anything about managing your money, hiring an adviser is essential.
While winning the lottery is one way to build up your wealth, you should remember that most prize winnings are taxed as income. This means that a windfall can easily turn into a major tax burden. The IRS also taxes tangible prizes at fair market value.