How to Manage a Lottery Jackpot
Whether you are thinking about winning a lottery jackpot or not, it is important to know how to manage a major cash windfall. There are many different strategies you can use to help you build wealth and take advantage of your newfound fortune.
The Powerball lottery is played in 45 states and the District of Columbia. The jackpot is usually paid in either a lump sum or as an annuity. The annuity is paid in 30 graduated payments over 29 years. If you win the jackpot, you can take the entire amount as an annuity or receive a lump sum that is 51% less than the jackpot.
One of the best ways to manage a lottery jackpot is to take the money as an annuity. The money is paid over a period of 29 years and can be invested to help you build wealth.
There are also several cases where a winner lost most of their money because of reckless spending. For instance, Evelyn Basehore and Evelyn Adams lost much of their winnings to gambling.
Another case is that of William “Bud” Post. He won $16.2 million in the Pennsylvania Lottery in 1988. He spent a lot of his winnings on houses, cars, boats and legal entanglements. He also blew cash on gifts and partying. He was a notorious spender. He was convicted of reckless gambling and eventually died.
A similar story involves a woman named Suzanne Mullins. She won $4.3 million in the Virginia lottery in 1993. She blew through the money and eventually went into deep debt. She agreed to split the money with her family.