DES MOINES, Iowa (NEXSTAR) — Someone in New Jersey defied the odds Tuesday night and won a $1.12 billion Mega Millions jackpot, breaking a winning streak that dates back to December of last year.
The numbers drawn were 7, 11, 22, 29, 38, and 4. According to the Mega Millions website, the winning ticket was sold in New Jersey.
Match 5 + Megaplier winner sold in New York. Match 5 winners sold in California, Colorado, Florida (2), Georgia (2), Illinois, Indiana, Michigan, New York (2), and Ohio.
Until the latest drawing, no one had matched all six numbers to win the Mega Millions jackpot since Dec. 8. This is his 30th consecutive drawing without a big winner.
of Prize money is the 8th largest A landmark in American lottery history.
The $1.12 billion jackpot will be paid out through the annuity in an initial payment and 29 annual payments thereafter. Most winners choose to pay out in cash, which brings his total to $537.5 million.
The next big US lottery drawing is scheduled for Wednesday night. $865 million Powerball jackpot. No one has won the prize since New Year’s Day, making it his 36th drawing without a winner.
The odds of winning either jackpot are extremely high, 1 in 302.6 million for Mega Millions and 1 in 292.2 million for Powerball, but if you can overcome these odds and secure a record jackpot. , step number expert We suggest the following. That includes building your team (we highly recommend a financial advisor, tax advisor, and attorney) and keeping your tickets safe.
Once you’re ready to come forward and collect your winnings, you’ll have to make a big decision: whether to take the annuity option or receive cash.
Annuities options are the most commonly seen amounts advertised when it comes to Mega Millions and Powerball. In the former case, it is $1.12 billion, and in the latter case, it is $865 million. If you choose this payment method, you will receive a one-time payment followed by 29 annual payments of 5% increments until you reach the amount earned.
The cash option ($537.5 million for Mega Millions and $416.1 million for Powerball) represents the amount gaming officials determine is needed to fund the pension option.
If you want your winnings immediately, we recommend choosing the cash option, but if you ultimately need more money, we recommend choosing the annuity option.
So how do you know what’s best for you?
Robert Pagliarini, president and chief financial advisor at Pacifica Wealth Advisors and author of The Sudden Wealth Solution, says, “Most people do it because they want money and because they want control over it.” I will receive a lump sum payment,” he told Nexstar. “Honestly, I think most people would probably be better off taking their pension.”
As mentioned earlier, the annuity option means you receive a check each year that contains a slightly larger amount of your lottery winnings. This annual allowance may sound like a nuisance to new jackpot winners, but it also helps protect you.
For example, let’s say you wasted your winnings one year. Maybe you don’t spend your money wisely, make bad purchases, or give too many gifts. If you choose the cash option, “there is no do-over, no reset,” Pagliarini explained.
“But with a pension, you can redeem yourself every year,” he added. “It might take a few years, it might take five or six years, but we’ll see eventually.”
Also, choosing a cash lump sum payment means more taxes will be withheld. All states are required to withhold 25 percent in federal lottery taxes, and with additional withholding, approximately 37 percent of the jackpot would be lost in taxes. after that, depending on where you liveYou’ll see more withholding for state taxes.
But as Jeremy Kail, a financial advisor in Wisconsin, previously said: Associated Press There are no bad choices when it comes to the payment you choose. Kale said the Powerball annuity is based on an investment return of 4.3% on the jackpot prize.
“If you think you can get above 4.3%, you should take the cash,” Keel said. “If not, please take your pension.”
No matter which option you choose, if you win either jackpot, Pagliarini will assemble a team of experts who will sign your ticket and keep it safe. [your payout] Make a decision as soon as possible and in a way that makes sense to you. ”
Mega Millions is played in 45 states, plus Washington DC and the US Virgin Islands. Powerball is played in these states as well as Washington, DC, the US Virgin Islands, and Puerto Rico.
The Associated Press contributed to this report.
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