• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading
Home News Feed Personal Finance

Powerball surges to $730 million. Do this first if you win

CNBC NewsbyCNBC News
January 17, 2021

A customer shows their tickets for the Powerball lottery at the CA lotto store in San Bernardino County, California on the California-Nevada state line.

Gene Blevins | Reuters

Yet again, the Powerball jackpot has jumped higher.

The top prize is now $730 million — the six-largest in lottery history — following no ticket matching all numbers drawn Saturday night. And Mega Millions’ jackpot, at $850 million, is the third-largest jackpot ever. The next drawings are set for Tuesday (Mega Millions) and Wednesday (Powerball).

The odds of winning either game aren’t in your favor: The chance of a single ticket matching all six numbers is 1 in 302 million for Mega Millions and 1 in 292 million for Powerball.

Nevertheless, it’s still worth considering how you’d handle such a windfall if you were to beat the odds.

Jackpot winners usually get six months to a year to claim their prize, depending on the state where it was purchased. This generally means that rushing to lottery headquarters isn’t necessary.

In other words, winners should take a deep breath.

Big money equals big emotions

Whoever ends up hitting either jackpot should be prepared for a rollercoaster of emotions.

Experts say that once the initial excitement of winning the jackpot wears off, the magnitude of their windfall can settle in.

“For anyone experiencing newly created wealth … there are feelings of dislocation and a sense of being overwhelmed,” said Valerie Galinskaya, a managing director and head of the Merrill Center for Family Wealth.

For anyone experiencing newly created wealth … there are feelings of dislocation and a sense of being overwhelmed.

Valerie Galinskaya

Head of the Merrill Center for Family Wealth

Of course, you don’t have to go it alone.

Given the sheer size of these jackpots, winners should assemble a team of experienced professionals — including an attorney, CPA and financial advisor — to help them navigate the windfall. 

“You want to hire the right advisors who can provide not just good advice, but advice that’s tailored to your needs and wants,” Galinskaya said.

Protect your ticket and identity

You should make a copy of your ticket, put it in a safe place — i.e., a lockbox or safe deposit at a bank — and resist the urge to share your news with everyone in your life.

“Don’t blab to people about it right away, except for your immediate and trusted family,” said certified financial planner Jim Shagawat, a New Jersey-based partner advisor with AdvicePeriod of Los Angeles.

Additionally, you should shield your identity when you claim the jackpot, if possible. While the standard advice is to sign the back of the ticket, this could interfere with remaining anonymous if state laws let you create a trust or limited liability corporation to claim the windfall instead of doing so in your own name.

More from Personal Finance:
IRS delays start of tax filing season to Feb. 12
Attacking holiday debt: These 8 strategies can help
How to get out of vacation timeshares amid pandemic

If your state laws require your name to be publicly announced, it’s worth preparing how to respond if others bring up your windfall in conversation, Galinskaya said.

“You say ‘I’m really grateful, and we’re still working through what it means for us,'” she said. 

Prepare for the tax bill

For the $850 million Mega Millions jackpot, the cash option — which most winners choose instead of an annuity — is $628.2 million.

Before the money gets to you, however, 24% — or $150.8 million — will be withheld for federal taxes. You also could count on owing a lot more to Uncle Sam due to the highest marginal rate of 37% applying to income above $523,600 for individual tax filers and $628,300 for married couples filing jointly. State taxes also are typically due.

For Powerball’s $730 million jackpot, the lump sum option is $546 million. The 24% withholding would be about $131 million. And, again, more would be due. 

Think philanthropically

One way to reduce your tax bill is to think charitably. Basically, the government gives you a tax break if you use private money to do public good.

“It’s not only about what you want to do for yourself and your family, but also philanthropically,” Galinskaya said.

You can contribute cash, up to 60% of your adjusted gross income, to a public charity or a donor-advised fund and get a tax deduction for the amount in the year you make the donation. You also could create a private foundation, donate income to it and then determine over time how to employ it.

Read The Original Article on CNBC News

Related Topics

Bitcoin

First North American Bitcoin ETF Approved by Canadian Securities Regulator

Bitcoin

Enterprise Blockchain Firm R3 Launches Confidential Business Computing Platform

Prev Next

You May Like

Bitcoin

First North American Bitcoin ETF Approved by Canadian Securities Regulator

Bitcoin

Enterprise Blockchain Firm R3 Launches Confidential Business Computing Platform

Bitcoin

Binance-Backed DeFi Credit Union Platform Secures Partners, Funding Before Launch

Bitcoin

U.S. Woman Charged Over Attempted Dark Web Murder-for-Hire Paid With Bitcoin

Financial News

Personal Finance

How can the U.S. boost retirement planning for minorities? Start with access and education

CNBC News
by CNBC News
Bitcoin

Market Wrap: Bitcoin Closes 2020 Near Record Highs

CoinDesk
by CoinDesk
Stock Market

Stocks making the biggest moves after the bell: Cisco Systems, Disney, Applied Materials & more

CNBC News
by CNBC News
Bitcoin

Active Bitcoin Addresses Hit Third-Highest Level in November

Blockchain News
by Blockchain News
Personal Finance

Mark Cuban: Bitcoin is ‘more religion than solution’ and won’t help in ‘doomsday scenarios’

CNBC News
by CNBC News
Blockchain News

Uniswap Reaches $3 Billion in TVL, Anticipates Community Call to Deliberate Liquidity Mining Rewards

Blockchain News
by Blockchain News
Blockchain News

Cryptos Confiscated from $4.2 Billion PlusToken Scam Likely Sold by Chinese Police, says Journalist Colin Wu

Blockchain News
by Blockchain News
Personal Finance

Next stimulus package may include eviction moratorium and $25 billion in rental assistance

CNBC News
by CNBC News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

← Stocks making the biggest moves midday: Poshmark, JPMorgan, Wells Fargo, Zoom, Spotify & more ← Here are tax issues to consider if you tapped retirement account to weather 2020
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.