There are many ways to spend your lottery jackpot. In the United States, you can choose to take a lump sum, or you can opt to receive the prize in thirty-year installments. A professional financial planner like Lisa Kirchenbauer can help you determine what would work best for your circumstances. She also recommends partnering with a financial planning team to help you plan for your future.
Mega Millions, for example, is a lottery game that can be played in 45 U.S. states, including Washington, D.C., and the U.S. Virgin Islands. The game is played twice a week, and the jackpot is awarded to the person who picks all six winning numbers. The odds of winning are one in 303 million.
After taxes are deducted, a lottery winner can choose a payout plan. A lump sum payment is the most popular option, but a lottery winner can also choose to receive an annuity, which pays out over a fixed number of years. Annuity payments are more attractive to people who prefer to receive regular payments over time.
The odds of winning the lottery are extremely low, but they do not decrease with playing more. Most advertised jackpots are actually the sum of annuity payments over decades, and the alternative lump sum payouts are much smaller. This is how lottery operators are able to keep jackpots growing.