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What should you do if you win record Powerball drawing?

Lottery Jackpot
Posted at 12:34 PM, Nov 07, 2022
and last updated 2022-11-07 14:17:00-05

Someone will eventually win Powerball’s massive jackpot. What if you’re that person?

Powerball is expected to have the largest jackpot ever for a U.S. lottery on Monday, reaching at least $1.9 billion.

While your odds of winning might be one in over 292 million, the prospect of winning such a large jackpot might have you wondering what you should do if you win the jackpot.

According to State Farm, you should first secure your ticket and keep it protected. Then, hire an attorney and financial adviser, the company said.

“You’re going to need a lawyer, accountant and financial adviser who have experience with large financial windfalls — finding them should be one of your first steps before you claim your money,” State Farm said.

According to Powerball, the amount of time a person has to claim a prize varies based on the state. States give anywhere from 90 days to one year to claim lottery winnings.

When you turn in the ticket, you can opt for a lump sum or receive a 29-year annuity.

If you take the lump sum, the amount will be somewhat lower than the advertised jackpot. Powerball says the jackpot would be $929 million for someone who takes the lump sum.

While it might be tempting to opt for an annuity given the higher overall payout, investing a lump sum payment might provide a better return. According to Nerd Wallet, the average return of the stock market is 10%. With compound interest, a person who invests $929 million now would have over $14 billion in three decades.

Numbers will be drawn for Monday’s drawing at 11 p.m. ET. If no one hits all six numbers on Monday, Wednesday’s jackpot will be even larger.