$700 million Powerball jackpot: What should you do if you win?
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With the progressive jackpot of the multi-state Powerball continuing to grow, so does the chance for someone to win a massive payout.
There have been 36 Powerball drawings since the jackpot was last won in August, when one lucky ticket in Pennsylvania matched six balls for a $206 million jackpot.
The Wednesday, October 26 Powerball jackpot is boasting a jackpot of $700 million, which is the largest Powerball jackpot of the year and could be the fifth largest ever won in the history of the game.
What should you do if you win?
Residents in 45 states across the U.S. will be participating in the drawing, and despite the size of the jackpot, there is a well-documented history of lottery winners ending up penniless.
The first step to take when you win is to sign your ticket, according to Forbes.
"Make sure that you sign your winning lottery ticket," the Forbes article reads. "It’s not as simple as picking the winning numbers. Why? You may lose your ticket between the time you bought the ticket, and there is no record that you purchased the winning ticket. A lottery ticket is considered a bearer instrument, which means that whoever signs the ticket can claim the lottery prize. So, don’t become the subject of a made-for-TV movie and forget to sign your winning lottery ticket."
What about remaining anonymous?
Unfortunately, with any clear-cut plan, it isn't that clear-cut. What you sign depends heavily on if your state allows you to remain anonymous.
Some states allow you to protect your identity, while others do not. Because of that, it is important to do the research and know the rules in your state. Sometimes you can claim your winnings as a lottery club, limited liability company or even a trust, which provides you further anonymity.
Hire an expert
With rules and laws surrounding such matters, the best thing will be to hire an expert. We aren't talking about uncle Joe, who knows a little about stocks. Hire a good lawyer or financial planner to help guide you through the "dos and don'ts" that you face as a new millionaire (or billionaire.)
Lump sum or annuity?
Before stepping foot into the lottery headquarters to claim your prize, you will need to know if you want to claim the lump sum or the annuity. According to the Powerball website, jackpot winners have their choice between receiving the prize as a 30-graduated payment annuity over 29 years, or as a lump-sum payment. The lump sum payout is the amount of money required to be in the prize pool at the time of the drawing, which is less than the advertised jackpot amount. While the annuity would presumably payout the full amount of the jackpot, many experts actually recommend investing the lump sum can net larger returns in the long run.
The tax man will come for their share, regardless of which option you choose.
Settle the past, plan for the future
Working with a financial planner, take a portion of your winnings and settle up all of your past debts. This is important because you do not want something from your past sneaking up to bite you in the future.
Next, working with your planner or a financial advisor, figure out the best means to invest your winnings to secure a high return on your investments, relax and enjoy your newfound wealth.
How to play:
- Powerball® costs $2 per play.
- Select five numbers from 1 to 69 for the white balls; then select one number from 1 to 26 for the red Powerball.
- Choose your numbers on a play slip or let the lottery terminal randomly pick your numbers.
- The Powerball jackpot grows until it is won.
- Players win a prize by matching one of the 9 Ways to Win.
Where to play:
- Powerball is played in 45 states, Washington DC, Puerto Rico and the US Virgin Islands!
- Powerball drawings are held every Monday, Wednesday and Saturday at 10:59 p.m. ET.
- Sales cut-off times vary by one to two hours before the drawing, depending on the selling jurisdiction.
- To find out where to watch the drawings, click HERE.
According to the Powerball website, the odds of winning a prize are 1 in 24.9.
Here are a few more things to know:
- Did you know your odds of winning a prize are the same in every Powerball drawing?
- You have a 1 in 24.9 chance of winning a prize when the advertised jackpot is $40 million.
- You still have a 1 in 24.9 chance of winning a prize when the advertised jackpot is $1 billion.
- Even if there are more tickets sold in a particular drawing, your odds of winning a prize are the same.
Several state lottery websites have tools to help if you are looking to strategize. For example, the Michigan Lottery site offers a tool to look up previous drawing results, evaluate "hot" or "cold" numbers, or generate random "lucky" numbers.
If you find yourself in a position where you are betting more than you can afford to lose, remember there are resources and help available.
The National Council on Problem Gambling operates the National Problem Gambling Helpline Network (1-800-522-4700). The network is a single national access point to local resources for those seeking help for a gambling problem. The network consists of 28 call centers that provide resources and referrals for all 50 states, Canada and the US Virgin Islands. Help is available 24/7 and is 100% confidential.
The National Problem Gambling Helpline Network also includes text and chat services. These features enable those who are gambling online or on their mobile phone to access help the same way they play. One call, text, or chat will get you to problem gambling help anywhere in the U.S. 24/7/365.
Help is also available via an online peer support forum at www.gamtalk.org.
