How to Spend Your Lottery Winnings

lottery winner

If you’re a lottery winner, the first thing to do is to start planning how to spend your prize money. Since most lotteries give winners several months to claim their prize, they should consult a professional accountant for tax advice. It’s important to determine whether you want to receive a lump-sum payout or a longer-term payout, as the latter reduces the risk of spending the money before it’s accumulated. Either way, you should carefully weigh the pros and cons of each option.

A six-figure windfall is a life-changing event, and most people have no experience in managing such a large sum. If the money doesn’t go as planned, family members and friends can demand a share. According to a recent study, only one-third of lottery winners save their winnings, and one-third end up bankrupt. Investing your lottery winnings in annuities can help you avoid the hefty tax burden associated with receiving a lump-sum payout.

Buying more tickets increases your odds of winning. In the past, a man in Maryland won $2 million. He’s now worth millions of dollars. As a result, he’s making history as a lottery winner. He’s not only the second Maryland lottery winner to win $2 million, but also the third-largest jackpot in the United States. In January 2016, a ticket in a Powerball lottery drawing won him his second big prize.