A lottery jackpot is the top prize of a particular drawing. The jackpot can be won by one person or by a group of people who buy tickets. The odds of winning a lottery jackpot are usually 1 in 175 million or higher. Lotteries are based on a basic human desire to dream big. People often misunderstand how unlikely it is to win a large sum of money, so it makes sense that they would be drawn in by the prospect.
Lottery winners can choose to take a lump-sum payout or an annuity payment that will be paid in 30 graduated payments over 29 years. An annuity will reduce your initial cash payout, but it will pay out more over time and you’ll have to pay less in taxes. If you are lucky enough to win a lottery jackpot, it’s wise to consult a financial advisor to determine the best option for you.
Plenty of lottery winners end up blowing their windfall on a huge house and Porsche, gambling it away, or even getting slammed with lawsuits. It’s best to avoid these pitfalls by hiring a crack team of helpers to manage your wealth. Certified financial planner Robert Pagliarini previously told Business Insider that a good way to do that is to create a “financial triad” that can help you navigate a sudden windfall. If you don’t have a triad already, it’s important to make sure your money is safe before you take the plunge.