How to Spend Your Lottery Jackpot

lottery jackpot

If you’ve won the lottery, congratulations! The next step is to gather a financial dream team. In addition to hiring an investment adviser, you’ll want to hire an estate-planning lawyer, a certified public accountant, and a private banker. Finally, you’ll want to consult an insurance expert. Your team will provide advice on how to invest, protect, and use your winnings to improve your life. The Mega Millions jackpot for Friday’s drawing stands at $34 million.

In the U.S., the jackpot is based on six numbers drawn from a pool of 49. The player who matches all six numbers wins the jackpot, which is usually at least $5 million. If the player matches five of the numbers and the bonus number, the winner wins a second prize. Matching two or three numbers also earns you smaller prizes. After all, you never know who might be watching your numbers. By playing smart, you can make your odds better.

If you win the lottery, you’ll want to consider how you’ll receive the money. If you don’t need the money right away, it may make sense to spread your lottery jackpot over several years. You’ll have to pay income tax on the winnings in the year you win, but there are a few states that don’t tax lottery winnings. You should also consider what your tax rate will be. For example, if you’re planning to invest the money, you’ll be better off having it paid over several years.