"Households across the US will be awaiting Monday night's Powerball drawing with fingers crossed, hoping it will deliver a life-changing windfall. Players have a shot at the fifth-largest jackpot in US history - an estimated $1.6 billion. Match all six numbers and the winner faces a huge decision from the offset: opting for an annuitized prize estimated at $1.6 billion paid out over 30 years, or taking a lump sum payment of about $735.3 million instead."
"Irwin told Business Insider that this decision should hinge on two factors: the financial implications, mostly around tax, and how you personally tend to handle money. "If you consider the financial and tax side, taking the lump sum is often advantageous," she said. "While you may face higher up-front income taxes, you gain greater long-term control over how your money is invested, and you have immediate access to your funds.""
The Powerball jackpot stands at an estimated $1.6 billion, with a winner facing a key choice between a 30-year annuity totaling about $1.6 billion and a lump sum near $735.3 million. Winners frequently receive little guidance after claiming large prizes and must make immediate, impactful financial decisions. The decision between lump sum and annuity should be based on tax implications and individual money-handling habits. Taking a lump sum often provides greater long-term control and immediate access to funds despite higher up-front taxes. Annuity payments spread income over decades and increase annually, offering steady income and peace of mind.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]