How to Receive Your Lottery Jackpot

When you win a lottery jackpot, it’s an emotional and financial moment. But it’s also a time for careful decision-making about how to receive the prize money.

The first step is deciding whether to take the winnings in a lump sum or spread them over 20 or 30 years via annuity payments. This will give you the opportunity to invest the money in high-yield options like real estate and stocks.

It’s also important to consider the tax implications of your win. Many lotteries allow you to delay claiming your prize until after your taxes have been filed, but this can result in a higher tax bill than taking the funds immediately.

You should also talk to a qualified accountant about how much you’ll need to pay in taxes. The amount depends on the tax rate and how much of your winnings are subject to federal taxes, which typically reduce your winnings by 24 percent or more.

Powerball and Mega Millions are popular lottery games that offer huge jackpots, which can reach billions of dollars. They’re drawn in several states and are broadcast live every Monday, Wednesday and Saturday at 10:59 p.m.

In recent years, lottery operators have made the odds of winning big jackpots more difficult by increasing ticket prices and adding more number combinations to their games. They’ve also raised the size of the advertised jackpots, which is based on the total amount you’d get if you choose to be paid in annuity over decades.