What is a Lottery Jackpot?
A lottery jackpot is a prize amount that reaches into the millions. These prizes are determined by a combination of numbers and are based on ticket sales. The higher the number of tickets sold, the larger the jackpot will be. While winning the lottery sounds like a dream come true, it’s important to know that you are more likely to be struck by lightning or to die in a car crash than to win the jackpot. This means that even though you may have a small chance of winning, financially you are better off not playing at all.
If you are lucky enough to win a multi-million dollar lottery jackpot, it’s imperative that you hire a financial adviser to help you manage your newfound wealth. The euphoria that accompanies such a massive win can be overwhelming and unless you are careful, you could make some major mistakes that could jeopardize your entire fortune. For instance, showing off your winnings can upset people and make them bitter, causing them to seek revenge or try to steal your money. Additionally, it’s easy to let greed take over and make bad investments.
Lottery winners can choose between receiving a lump sum payment or an annuity payout that will pay them over the course of several years. Usually, the annuity option is less expensive because it can be taxed at a lower rate than the lump sum payment. However, many lottery winners choose the lump sum because it allows them to get the most bang for their buck upfront.