How to Get Your Lottery Jackpot Safely and Responsible
A lottery jackpot is a large sum of money won by a single ticket. It’s a dream prize for many people, but it’s also very unlikely.
Despite the odds, there are plenty of stories about lucky winners who’ve made it big on the lottery. If you’re one of them, you might be wondering how to get your winnings safely and responsibly.
The first decision lottery jackpot winners must make is whether to take the money all at once or spread it out over time. Choosing the latter option, called an annuity, lets you receive a lump sum of the money after taxes as well as monthly payments that can increase over time.
Annuities are typically a more conservative option, because they spread your payments over 20 or 30 years and give you more control over your money. But they also carry an additional cost: the interest that accumulates on your funds.
In addition, you might have to pay taxes on your annuity payments. So it’s important to consider the taxes and fees before you decide whether to take your lottery jackpot in a lump sum or as an annuity payment.
Multi-state lottery associations were born out of frustration from states with smaller populations, Mr Cohen said. They pushed for larger lottery prizes, but were hampered by the fact that few people bought tickets in other states where jackpots were bigger.
The best way to increase your chances of winning a lottery jackpot is to play more than one game, but this isn’t always possible. Some lotteries offer extra draws or bonus games that boost non-jackpot wins.