According to the Multi-State Lottery Association, the Powerball jackpot increased to an estimated $1.4 billion on October 6, 2023.
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The Powerball jackpot has risen to an estimated $1.4 billion ahead of Saturday night’s drawing – and financial experts have tips for the lucky winner.
The third largest prize in the game’s history, the winner receives a lump sum $614 million, or an annual price tag of $1.4 billion. Both options are pre-tax estimates.
The next Powerball drawing takes place on Saturday at 10:59 p.m. ET and sales typically close one to two hours before the drawing. The chance of winning the jackpot is approximately 1 in 292.2 million.
The biggest threats to lottery winners are excessive spending, poor investment decisions and family members asking for money, said Andrew Stoltmann, a Chicago-based attorney who has represented several lottery winners. “Saying ‘no’ to family might be the hardest thing lottery winners have to do,” he said.
According to financial experts, the lucky winner should do the following first:
Assemble a team of professionals
“Lotto winners have historically had a weaker socioeconomic background,” said Stoltmann. “They don’t have the experience to manage money or build the finance team.”
Before making big financial decisions, the winner should hire one Financial advisors, tax advisors and at least one attorney, he said.
First, consider a “cooling down” period.
Whether it’s a large inheritance or a lottery win, “My recommendation is to do nothing at first,” said certified financial planner and registered broker John Loyd, owner of The Wealth Planner in Fort Worth, Texas.
The lump sum offers the full price upfront, while the annuity offers an immediate payout followed by 29 annual payouts that increase by 5% each year, according to Powerball.
“Money is an emotional thing,” Loyd said. “And you want to try to minimize emotional decisions as much as possible.”
Saturday’s Powerball drawing comes less than three months since a single ticket sold in California won the game’s $1.08 billion jackpot. This is the first time the game has recorded back-to-back billion dollar jackpots. Meanwhile, the Mega Millions jackpot is currently worth an estimated $360 million and the odds of winning the top prize are about 1 in 302 million.