When a jackpot reaches one billion dollars, people become transfixed with excitement. People rush to buy tickets both online and at physical locations in hopes of being part of this remarkable wealth-generating experiment – but before taking the plunge yourself it’s important to keep some key facts in mind before diving in headfirst: firstly it is unlikely you will actually win and secondly chances may even be against you in that it may never actually pay out in real terms!
However, that does not preclude you from having a chance. Victor Matheson from College of the Holy Cross economics professor believes there have been over 12 jackpots that topped $1 billion since 2016. According to him, lottery games are designed specifically to hit headline-making amounts more frequently in order to increase sales; “Lottery games are engineered specifically with that in mind.”
Recent lottery jackpots to reach one billion dollars include Powerball prizes awarded in November 2022 that remain unclaimed today; one winner came forward but has yet to come forward (perhaps they are making arrangements?).
But even if you win the lottery, that doesn’t guarantee that your lifestyle will remain intact. Studies show that 70% of people who receive windfalls soon afterwards lose it – either spending on frivolous purchases or giving it to friends and relatives seeking easy cash. To prevent this fate from befalling you, establish a team of professionals, including an attorney, accountant and financial planner to protect your fortune and preserve its value.
Lottery winners should expect a substantial tax bill. The IRS will take 24% from any winnings taken as either lump sum or annuity payments; with an annuity option you’ll receive your first payment immediately followed by 29 annual payments with each increase increasing by 5% each year until all 30 payments have been made if you die prior to this happening – any balance going back into your estate.
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