What to Do If You Win a Lottery Jackpot

lottery jackpot

If you’re a big lottery fan, you’ve probably heard about the record-breaking jackpot that recently hit the US. The Powerball lottery was one of the biggest jackpots in US history, topping $1.586 billion. Three states, including California, Florida, and Tennessee, each won a share of the prize. One of the lucky winners, Michael Schultz, was so overwhelmed by his win that he called his financial adviser and attorneys, which helped him make a wise financial decision. Millionaires don’t always know what to do with their money, so it’s always wise to have some guidance.

Winning the lottery is a dream for many people. However, the chances of winning the jackpot are small. If you do win, you’ll want to protect your identity by remaining anonymous. Doing this will keep your name out of the news and away from scammers. Additionally, it will keep you safe from old friends and relatives who might be trying to scam you out of your prize money.

If you win a large lottery jackpot, you need to think about the tax implications. Lottery winnings are subject to federal and state income taxes. For tangible prizes, the tax rate is generally at the fair market value. A large portion of your lottery winnings will be taxed in the year you collect it, so you’ll need to consider this when you plan to collect your prize.