4 Essential Steps to Take if You Win the $640 Million Mega Millions Jackpot

Ending the year with a $640 million windfall would be an incredible way to finish off the year.

The Mega Millions jackpot for the upcoming drawing on Friday night is now at an impressive amount. This prize has been increasing since October 14th, when two tickets sold in Florida and California both had the correct numbers to share a $502 million jackpot.

The odds of winning the lottery are incredibly slim, with only a one in 302.6 million chance of success. Despite this, it is still important to think about what you would do with such a large sum of money if you were to win.

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Susan Bradley, a certified financial planner and founder of the Sudden Money Institute in Palm Beach Gardens, Florida, noted that the stress level is quite high, which can be difficult to manage.

Winning the lottery can be a cause of sleepless nights for many people.

It is not a straightforward process to receive your reward and continue with your life.

If you are fortunate enough to have the winning lottery ticket, here are the steps you should take. There is no need to hurry to the lottery office immediately.

The amount of time you have to claim your prize after purchasing a ticket varies depending on the state in which it was purchased. Generally, you will have between 60 and 90 days up to a year to redeem your winnings.

Figuring out how to manage a large amount of money can take some time, according to Janet Stanzak, CFP and founder/partner of Financial Empowerment in Burnsville, Minnesota.

It is essential to safeguard your ticket. Professionals suggest taking a picture of yourself with the valuable ticket and then keeping it in a secure location, like a lockbox.

Bradley warned to be careful with the ticket, as it could be lost and without it, there would be no money.

It is suggested that you sign the back of your lottery ticket as a way to prove that it is yours. Before you do this, it is important to be aware of the regulations for claiming your prize in the state where you bought the ticket.

In certain states, it is possible to remain anonymous when claiming a lottery prize. However, if the state requires the winner's name to be made public, it may be possible to avoid revealing your identity by claiming the prize in the name of a trust or other legal entity.

It is suggested by experts that you keep news of your good luck to yourself, only revealing it to your closest family or a confidant.

Bradley suggested that it was important to only share secrets with someone who could be trusted to keep them and provide support.

Information has a tendency to spread quickly, and it is possible that old acquaintances or relatives - or even people looking to take advantage of a situation - could show up at your home.

When someone wins a large sum of money, they must make important financial decisions. It is beneficial to have a team of professionals to help with this process. This team should include a lawyer, financial advisor, tax advisor, and insurance specialist.

One of the initial major choices you will have to make is whether to accept the lottery winnings as a single lump sum or as an annuity paid out in yearly payments over thirty years. In either case, the IRS and the state (if it taxes lottery winnings) will take a portion of the money before it reaches you.

The current Mega Millions jackpot is worth $640 million, and the cash option - which is usually the preferred choice for winners - is $328.3 million.

The federal government requires a 24% withholding, which would reduce the prize amount to $249.5 million. However, the top marginal rate at the federal level is 37%, and in 2023, when the winner is likely to claim the prize, this rate applies to income above $578,125 for single filers and $693,750 for married couples, meaning the IRS could expect to receive more.

Despite this, the total you would accumulate is more than the majority of people experience in their lifetime.

Bradley suggested that one should consider the implications of the situation for themselves and those close to them.

The Powerball lottery is offering a jackpot of $246 million ($128.5 million cash option) for its upcoming drawing on Saturday night. The odds of a ticket winning the grand prize are approximately one in 292 million.