You will begin to receive our Daily News updates. Add your contacts.Īnnuity option: $24.6 million per year ($6.15 million federal withholding & $1.23 million state taxes) makes annual payment $17.22 million "Just buy a ticket, sit back and see if fate points a finger at you for that day."Ĭash option: $462 million ($115.5 million federal withholding & $23.1 million state taxes) makes lump sum payment $323.4 million cash "When people ask me, I just tell them that the odds of a lottery game make it a game of fate," said Chuck Strutt, executive director of the Urbandale, Iowa-based Multi-State Lottery Association that oversees the Mega Millions, Powerball and other lotteries. Lottery officials are happy to have Friday's record Mega Millions jackpot fueling ticket sales, but even they caution against overspending. averages, you're about 8,000 times more likely to be murdered than to win the lottery, and about 20,000 times more likely to die in a car crash than hit the lucky numbers, Catalano said. "Of course, if you buy 50 tickets, you've equalized your chances of winning the jackpot with getting struck by lightning."īased on other U.S. "You are about 50 times as likely to get struck by lightning as to win the lottery, based on the 90 people a year getting struck by lightning," Catalano said. The Mega Millions payout calculator helps you compare these two options and break down the annuity payment from the first installment payment to the 30 th year so you can decide what is best for you.Mike Catalano, chairman of the mathematics department at Dakota Wesleyan University in Mitchell, S.D., concedes the math is clear: The more tickets you buy, the better chances you have of winning. On the other hand, you lose the chance of investing in other high-yield opportunities. You will only pay taxes on the amount you receive every year, so you'll incur less tax liability in the long run (you can check it in your state using this Mega Millions payout calculator). If you choose the annuity payments option, you'll get 100% of your jackpot! Your Mega Millions payout amount for every annuity will increase by 5% annually until the entire amount paid-out. Still, the jackpot is usually a lot of money for you to quit your job, and it might be worth it if you have a good investment option that offers a considerably better return.īesides, the interest rate used in evaluating the annuity payment varies, so investing the cash amount into a business account, either fixed deposit or recurring deposit, or a 529 account for your child are options worth considering. Choosing to get paid at once today will get you only about 80% of your total jackpot winnings, and after you pay taxes on your winnings, you'll probably end up with around 50%.
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