How to Spend Your Winning Lottery Jackpot

lottery jackpot

If you have won a lottery jackpot, you’ll be faced with several financial decisions. First, you’ll need to determine whether you want to take a lump sum or a series of annuity payments. The lump sum can amount to up to 60% of the jackpot, and if you choose to take a lump sum, you’ll be able to receive the money immediately or spread the payments out over a period of time. You’ll also need to determine whether you want to pay tax on the amount you win. Tax laws vary by state, so you’ll want to make sure you know how much tax you’ll owe before you cash in your lottery winnings.

Although the odds of winning a lottery jackpot are slim, they can be boosted by participating in a lottery pool. This way, you’ll increase your chances of winning without increasing the chances of losing your investment. A recent example of a lottery pool was a 49-person office pool at SEPTA in Philadelphia, which split a $172.7 million Mega Millions jackpot in 2011.

The jackpot is worth about $85 million in cash and annuity payments. In some states, Mega Millions ticketholders receive two plays for the jackpot. In other states, tickets are not eligible for other prizes. You’ll need to check with your local lottery for details.