The value of Saturday’s Powerball jackpot annuity is the largest ever offered in the United States at $1.6 billion.
The multi-state lottery game hasn’t had a winner in 39 draws dating back to August 3. The jackpot could increase before Saturday night’s draw at 10:59 p.m.
“Sales momentum has been off the charts for both our retailers and NH iLottery, and we expect that momentum to continue through Saturday night’s draw. We are expecting over $6.5 million Powerball sales this week alone. This truly is the opportunity of a lifetime,” New Hampshire Lottery executive director Charlie McIntyre said in a statement.
“While we are certainly caught up in the excitement of this huge jackpot, we are also constantly reminding our players to gamble responsibly,” added McIntyre. “It only takes one to win!”
The cash value of the jackpot is $782.4 million, which raises another question when purchasing your ticket: do you opt for the annuity payout, which is paid in 30 annuities, or the cash option that is worth less but is paid in one go? ?
Capital payment or annuity?
Lou Scatigna, a certified financial planner from Toms River, New Jersey, says there are pros and cons to annuity and cash payouts.
An advantage for the cash option is that you get your winnings all at once and are not at the mercy of the state’s financial future.
“I have to be sure that the entity paying me over the next 20 years is financially viable to continue doing so. Suppose the state goes bankrupt or has a financial crisis or depression and it cannot pay Now you’re just a creditor,” Scatigna said. “If you get everything up front, you can control your money.”
The money can be invested and ultimately provide more money than the annuity.
“There’s no reason that well-invested money shouldn’t double every seven years,” Scatigna said.
Disadvantages of all that money
But having all that money can also be bad. Scatigna said typical jackpot winners are known to have blown all the money in less than 10 years. An annuity ensures you have a steady cash flow and suggests it might be a better choice.
“The one thing about annuities is that they save you from yourself because you get a fresh start at the beginning of each year when you get your payout,” Scatigna said.
The Psychology of Victory
The cash option can also lead some people down a dark path.
“If you’re a gambler or have vices where that kind of money is going to destroy your life, then annuity would be the default route you should go,” Scatigna said.
Annuity or cash, Scatigna advises winners to keep their good fortune quiet, hire an accountant, a financial planner and a therapist.
“Your life is going to change in ways that you never saw possible. And these are things that you are going to have to deal with that you definitely wouldn’t have to deal with in a normal life,” Scatigna said. to a billionaire. You are Elon Musk, or at least a fraction of him, pretty much overnight.
The New Hampshire Lottery recommends signing your winning ticket and taking a photo of both sides before bringing it to lottery headquarters.
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