Powerball jackpot hits $1.4 billion. Here's 'the toughest thing' for lottery winners, lawyer says

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The Powerball jackpot soared to an estimated $1.4 billion as of Oct. 6, 2023, according to the Multi-State Lottery Association.

Justin Sullivan | Getty

The Powerball jackpot has soared to an estimated $1.4 billion ahead of Saturday night’s drawing — and financial experts have tips for the lucky winner.

As the third-largest prize in the game’s history, the winner will pick between a lump sum worth $614 million or an annuitized prize of $1.4 billion. Both options are pretax estimates.

The next Powerball drawing is Saturday at 10:59 p.m. The cut-off for sales is usually one or two hours prior to the drawing. “Saying ‘no’ to family might be the hardest thing that lottery winners have to do,” he said. “Saying ‘no’ to family might be the toughest thing that lottery winners have to do,” he said.

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Here’s what the lucky winner should do first, according to financial experts.

Assemble a team of professionals

“Lottery winners historically are from lower socio-economic backgrounds,” said Stoltmann. They don’t know how to manage money or build a financial team. “

Before making big financial decisions, the winner should hire a financial advisor, tax professional and at least one attorney, he said.

Consider a ‘cooling off period’ first

Whether it’s a large inheritance or lottery winnings, “my recommendation is to initially do nothing,” said certified financial planner and enrolled agent John Loyd, owner at The Wealth Planner in Fort Worth, Texas.

Before choosing between the lump sum or annuity payout, he suggests taking a “cooling off period” to get organized and weigh the pros and cons.

The lump sum offers the full prize up front, while the annuity provides one immediate payment, followed by 29 annual payouts that increase 5% each year, according to Powerball.

“Money is an emotional thing,” Loyd said. You want to avoid making emotional decisions. “

Saturday’s Powerball drawing is less than three months after a single California ticket won the $1,08 billion jackpot. It is the first time that the Powerball game has had back-to-back $1 billion jackpots. The Mega Millions jackpot currently stands at an estimated $360,000,000, with odds of winning the grand prize being 1 in 302,000,000.