An Annuity Option For Winning the Lottery Jackpot

lottery jackpot

When you win the lottery, you have many options. You can choose to take the lump sum, which pays you the total prize in one payment, or you can opt for annuity payments, which spread the winnings over a number of years. It is also possible to leave the annuity in your will.

If you choose the annuity option, you will get the first payment right away and will have to make 30 annual payments. The amount you will receive each year will increase based on current interest rates.

While annuities are certain, some people have ended up losing their fortune. Evelyn Basehore, for example, spent much of her lottery winnings gambling and giving away the rest.

David Lee Edwards also wasted his fortune. He purchased luxury cars and squandered his winnings. In 2002, he won a Powerball jackpot of $314 million. But within five years, he was spending less than $10. A few years later, he spiraled into drug addiction.

Another example is the South Korean immigrant Janite Lee, who had $700 in his bank account when he won the lottery. After winning the prize, he began living in a trailer park and had debts of $2.5 million.

There is a risk that the winning lottery ticket is a scam. To protect yourself, you must keep your ticket private and anonymous. This protects you from long lost friends and prevents scammers from taking your money.

Although the chances of winning the lottery are slim, there is some hope. Most lotteries offer annuity options.