Mega Millions .02 billion jackpot: Should you take a lump sum or annual payouts? — FOX Business

According to a personal finance expert, taking all your jackpot lotto winnings at once leads to greater problems than just a tax-induced headache. 

The Mega Millions Jackpot swelled to $1.02 billion after no one claimed the $830 million draw on Tuesday. The jackpot has grown from a meager $20 million in April, going 29 consecutive draws without a winner. 

Robert Pagliarini, a financial adviser and author of “The Sudden Wealth Solution,” told FOX Business that most winners would want to take the lump sum upfront even though they only get to keep 60% of the total jackpot thanks to taxes — but that would be a mistake. 

“Most people want to take the lump sum: They want their money upfront, even though they know they’re going to, you know, get a 40% hit when they take the lump sum,” Pagliarini explained. “They want control, they want it now; they don’t want to have it spread out over nearly 30 years”.

“All right: You can take that money, you can invest it… do whatever you want with it,” he continued. “The problem with the lump sum is… there is a high chance that people will basically spend the jackpot down and basically run out of money, which we see that time and time again… you make bad decisions and you spend down the money, there’s no reset button, there’s no do-over.”

Taking installments over 30 years carries……..Full Loaf Hot Link[read more]

Rising Dough

Rising Dough - the question(s) that we need to think about from the reading.Which is the smart play: to take the payout or the annuity, why?

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3 thoughts on “Mega Millions $1.02 billion jackpot: Should you take a lump sum or annual payouts? — FOX Business”
  1. i would personally take it in annual payment’s to not spend 1.2 billion dollars in 1 year. most lotto winners go bvroke not log after winning and i don’t want to get into the same trap.

  2. I would say the Annuity because it is much of a more smarter way to take my money. Not only will I be able to avoid more tax on my newly earned income, but I will also have more of a mindset to save and invest instead of spend it all immediately. Its honestly much more wise to have a gradual injection of money as I get more experienced on handling currency.

  3. I believe that going with the payout would be the smartest idea. One reason for this is that since the annuity is over a 30 year period, you may die and never receive the full amount of your win. Also, while a hefty 40% of the payout would go to taxes, that would still leave you with more than half of the money at hand. Considering that you most likely already have a job and a lifestyle to go with that job, this money can go into building your investment portfolio and increasing your wealth, as long as managed responsibly.

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