Powerball and Mega Millions (Photo by Scott Olson/Getty Images)
There’s a combined $889 million Powerball and Mega Millions jackpot up for grabs tonight.
Here what you need to know — and what to do if you’re the winner.
Lottery: Powerball and Mega Millions
The Powerball Jackpot has reached $457 million and The Mega Millions jackpot is now $432 million. The next Powerball drawing is tonight, and the latest Mega Millions drawing was last night. If you become the next big lottery winner, make sure you do these 5 things:
1. Sign your lottery ticket
Make sure that you sign your winning lottery ticket. It’s not as simple as picking the winning numbers. Why? You may lose your ticket between the time you bought the ticket, and there is no record that you purchased the winning ticket. A lottery ticket is considered a bearer instrument, which means that whoever signs the ticket can claim the lottery prize. So, don’t become the subject of a made-for-TV movie and forget to sign your winning lottery ticket.
2. Remain anonymous if possible
Some people like attention; some don’t. If you fall in the latter category and don’t want attention following your lottery win, then you may be able to remain anonymous. Otherwise, your long lost cousins, favorite coworkers and “best friends” may suddenly want to remind you of the close relationship you’ve always shared. If you are a lottery winner who lives in one of six U.S. states — Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina — you can choose to remain anonymous when you claim a lottery prize. To protect their identity, some lottery winners choose to accept a lottery prize through a legal entity such as a trust. This could impact the signature on the back of the ticket, so make sure to consult an attorney. The remaining states, including Washington, D.C., Puerto Rico and the U.S. Virgin Islands require that winners publicly disclose their identity, including their name, city and prize amount.
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3. Choose between the lump sum and annuity payments
If you’re the next Powerball or Mega Millions winner, you must choose between an upfront, lump-sum cash payment or annual payments. Make sure you understand the difference. For Powerball, for example, the upfront, lump-sum cash option is $331.6 million (minus withheld taxes). Alternatively, you could choose 30 payments of approximately $15 million each over 29 years (and you’ll be responsible to pay taxes as you receive annuity payments). Which option is better? Financially, the lump-sum payment is preferable. Why? You can invest your winning upfront and earn a stable return that could exceed the amount of the annuity payments. This is based on classic financial wisdom on the time value of money that says: “A dollar today is worth more than a dollar tomorrow.” That said, if you’re concerned about spending your money too quickly, then choosing the annuity payments may be more prudent. That’s not necessarily the best financial choice in terms of investment return, but it may help you remain organized and limit any potential financial losses.
4. Hire financial advisors
With your lottery jackpot winnings, one of the best ways to protect against financial loss is to hire a team that can help preserve and grow your new-found wealth. A reputable team of experts can help you manage your investments, help guide your philanthropic interests, and help you achieve other financial life goals. Make sure you vet anyone you hire, as you’re likely to be approached by hordes of advisers looking to guide you. Most importantly, make sure you sign you own checks so that you know fully where your money is going.
5. Pay off debt
Winning the lottery is not only about spending money. Winning Powerball or Mega Millions is an opportune time to pay off debt. This includes paying off student loans or paying off credit card debt, for example. Or perhaps you want to pay off your mortgage. Yes, you could keep this debt outstanding and perhaps earn a higher return on your investments. However, as a hundred millionaire, do you want to be focused on making student loan payments or credit card debt payments every month? You may appreciate getting out of debt today so that you can enjoy tomorrow.
Powerball Lottery Q&A
How do you play Powerball?
Choose five numbers from 1 to 69 and one Powerball number from 1 to 26. You can also select Quick Pik and the numbers will be selected automatically for you.
Where can I play Powerball?
The Multi-State Lottery Association administers Powerball in 45 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands.
How much does it cost to play Powerball?
Each ticket costs $2. There is no limit to the number of tickets that you can purchase.
What are the odds on winning the Powerball jackpot?
The odds of winning the Powerball jackpot are about 1 in 292 million.
Mega Millions Q&A
How do you play Mega Millions?
Choose five numbers from 1 to 70 and one Mega Ball number from 1 to 25. You can also select Easy Pick / Quick Pick and the numbers will be selected automatically for you. You win when you match all six numbers.
Where can I play Mega Millions?
Mega Millions is available in 45 states, Washington, D.C. and the U.S. Virgin Islands.
How much does it cost to play Mega Millions?
Each ticket costs $2. There is no limit to the number of tickets that you can purchase.
What are the odds of winning the Mega Millions jackpot?
The odds of winning the Mega Millions jackpot is approximately 1 in 302 million.
