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If you’re playing powerball, it’s a good idea to dream about how you would spend your money playing the jackpot.
As the grand prize of the $ 454 million lottery announced for Wednesday night’s draw, you want to think about what you would actually do if you matched the six numbers drawn. Experts recommend that large lottery winners take immediate action to protect their winnings.
To begin with, remember that a lottery ticket is a “carrier tool”, that is, it is considered a property. That means you have to protect yourself.
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With the winning card, you can take a picture of yourself and then place it in a safe place (such as a box) until it’s time to claim your winnings.
You may also want to sign the back of the card. Please note that in some states that do not allow you to claim your profits anonymously, doing so may interfere with your ability to take possession of the award through a trust or other legal entity that would protect your identity from the public.
It’s also worth sharing as few people with life-changing news as possible. If you can’t keep anonymous, you need to think about how to avoid becoming a target for scammers and long-lost relatives and friends.
You should also turn to experienced professionals to help guide you through the claims process and the various aspects of protecting your earnings. Your team should consist of a lawyer, a financial advisor, a tax advisor and an insurance professional.
This group will help you decide whether to take your earnings as a sum of money or as a payout spread over 29 years. Most lottery winners choose a reduced amount of instant cash. For this $ 454 million jackpot, the cash option is $ 271.9 million.
In any case, the money must be subject to 24% federal tax withholding before it can reach you. For this jackpot, taking the cash would result in the removal of about $ 65.3 million from the top. However, additional federal taxes would probably be paid during the tax period, at the highest rate of 37%. State taxes may be withheld or paid.
It’s worth thinking about how your life will change, and not just from a financial standpoint. Some experts suggest seeking the guidance of a financial therapist or mental health professional to help you cope with the stress of earning.
Meanwhile, the Mega Millions jackpot is $ 43 million ($ 25.9 million in cash) for Friday night’s raffle.
The chance of a single card reaching the Powerball jackpot is 1 in 292 million. For the Mega Millions Grand Prix, it’s 1 in 302 million.
The powerball jackpot is $ 454 million. What to do if you win first
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