It’s no secret that the Powerball jackpot can change your life. But it’s also a fact that a lot of lottery winners end up spending it on things they don’t need. This is because winning millions can be like winning Monopoly money. And if you don’t know what to do with your money, you can make a terrible mistake.
One way to keep your lotto winnings safe is to hire an accountant or attorney. You should also research your state’s laws. If you don’t, you could wind up getting sued.
A lucky winner should decide whether to receive a lump sum or take the prize in annual payments. Some states require lottery winners to undergo mandatory tax withholdings. However, California and Delaware are two states that don’t tax lottery winners’ earnings.
Some lottery winners choose to stay anonymous. They don’t reveal their names to the public, but their winnings are still subject to federal and state withholdings. Make sure you do your research before deciding whether to be open or discreet.
Another lottery winner who wanted to remain anonymous was Suzanne Mullins, who won $4.2 million in 1993 from the Virginia Lottery. She decided to take it in annual payments. In 2001, her winnings were worth just over half a million dollars.
Another lottery winner, Jay Sommers, had a bad habit of wasting his money. He blew through the first annual payment of $290,000 by buying five luxury cars. His friend, a business-savvy guy, emptied his bank account.