The fun has ended as 3 lucky winners have been announced for the record-breaking Powerball jackpot of $1.6 billion on Wednesday night. The 3 winners have yet to come forward but the winning tickets were purchased in Chino Hills, CA, Munford, TN, and Melbourne Beach, FL.
The Powerball lottery has been the topic of conversation amongst relatives, friends, and even strangers that you bump into because of the incredible jackpot of $1.6 billion. If one individual had won and they decided to take the lump sum they would’ve been left with around $900 before taxes and about $500-$600 after taxes depending on where you live. If you had decided to take the annual payment spread out over a 30-year period it would’ve been $53 million a year pre-taxes and about $35 million a year after taxes for the next 30 years!
Since there were 3 lucky winners in Wednesday’s Powerball jackpot drawing here’s how it’ll play out for these people. With a total jackpot of $1.6 billion split amongst 3 people that means they each receive a whopping $316 million each (about $200 million after taxes) if they decide to take the lump sum. Or if they decide to take the annual payment it would be $17 million a year or $11 million after taxes. I know it’s tempting to take the lump sum of $200 million but receiving $11 million a year for the next 30 years sounds like a much wiser decision. Too many past winners have gone broke by taking the lump sum and then living an uncontrollably lavish lifestyle that can only last so long.
What would you do? Would you take the lump sum of $200 million or opt to receive $11 a year for 30 years?