Annuity vs. lump sum Mega Millions payout

Why you may want to rethink that cash option...or not

Annuity vs. lump sum Mega Millions payout
Why you may want to rethink that cash option...or not 🤷‍♂️

CLEVELAND, OH (WOIO) - The Mega Millions jackpot is up to 1.6 Billion (with a B) the largest amount of money in lotto history.

Tuesday’s Mega Millions numbers: 28 70 5 62 65 05

Annuity vs. lump sum Mega Millions payout

Between the Mega Millions and Powerball jackpots there is $2.2B at stake.

You have two options to receive your winnings:

Annuity (1.6 B)

According to the Mega Millions website, annuity is one immediate payment followed by 29 annual payments.

Each payment is 5% bigger than the previous one.

The 30-year period is set to help protect winners’ lifestyle and purchasing power in periods of inflation, according to the website.

Winners will also walk away with more money with the annuity option.

Lump Sum payout (904,900,000)

The cash option is a one-time, lump sum payment.

On Tuesday a lucky winner can walk away with just under $1B in cash.

With all that money in hand it is quite possible to end up with more through good investments, but you just have to know your habits.

Here are a few stories of past lottery winners for you to consider

If nobody wins, we’ll see you on Friday, where the jackpot would be an estimated $2B.

tax attorney Scott Broom says, “it’s not just about being a billionaire...it’s about being a careful billionaire...Don’t tell anybody, be quiet and secure the ticket.”

Get professional financial advice, he adds, “If they want to charge you a percentage of the winnings of setting up a trust, run away.”

Need help picking numbers? Lottonumbers.com has statistical data worth reading.

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