You’re rich! Now what?
Every Mega Millions jackpot winner has the option to take cash now in a one-time, lump-sum payment or to receive a chunk of the winnings annually for 30 years. For the $1.02 billion jackpot, the cash option is $602.5 million
If you took the annuity option instead, you could get roughly $15.3 million for the first payment. Then each one after that increases by 5%. If you die before all of the annual payments are made, the rest will be sent to your heirs.
But hold on! Don’t spend that billion, yet. The federal government wants their share, and they’ll get it.
Here comes the tax man
The $1.1 billion jackpot payout will be taxed as ordinary income, according to Tom O’Saben, a director at the National Association of Tax Professionals. A single winner would most certainly hit the maximum federal tax rate of 37%, bringing down the prize to about, $408 million.
Garth $$
Still, that will buy you a beach house, a couple of new cars and you can afford a steak or two each week. I mean, at $400 mil, you’re in Garth Brooks’ money
Not all winners stay rich
Many lottery winners actually end up broke. It’s hard to believe, but it happens.
Free Garth Show!
Still, I’ll take a chance of screwing it up and I’ll buy a few tickets today and I may wake up tomorrow a millionaire. If I do win, I’m gonna throw a big party for every one of you KICKS listeners. I’ll bring in Garth for a big concert and give away a few fast cars, some lobster tails, and cold beers.
Quick pick or choose your own?
If you are going strictly by the numbers, more Quick Pickers than self-pickers win lottery jackpots. About 70% of lottery winners used Quick Pick to choose their numbers. But then again, about the same percentage of all lottery players — about 70% – 80% — use Quick Pick to select their numbers. Find out more here.
Stylin’ and profilin’
Good luck everyone! When I win, you’ll see me walking down Broad Street wearing a full-length fur coat, yellow boots, and a fedora with a large feather in it. Hahahaha!
You can do that when you’re rich.
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