LUCKY LOTTO
I won $1 million from an ‘instant’ lottery game but I get $650k after my decision – the store I bought it got $10k
A $1 million Powerball prize from Washington has yet to be claimed
A LOTTERY player made a life-changing decision when he bought an instant ticket worth $1 million.
Richard Swiater, a resident of Great Barrington Massachusetts, purchased a $10 lottery ticket.
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It was for an instant game called $4,000,000 Monopoly Doubler with prizes ranging from $10 to $4,000,000.
He got his ticket at a store called Silk’s Variety in Sheffield.
Swiater won the second prize of $1 million, and the store was awarded a $10,000 bonus from the Massachusetts Lottery.
However, his choice meant losing most of his lotto loot.
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WINNER'S DECISION
Lottery winners nationwide are faced with two options when claiming their prizes.
They can receive the money in a one-time lump sum or as an annuity.
Taking a lump sum chops off a chunk of the prize upfront.
Annuity payments ensure a steady income for decades, but tax withholdings can vary as the years progress.
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In Swiater's case, he opted for a one-time lump sum payment of $650,000 before taxes.
That means he gave up $350,000, but Massachusetts also withholds a 5% state tax on lottery prizes while the federal tax is 24%.
Urgent warning to check Powerball tickets as $1.3 billion jackpot goes unclaimed - ending a three-month no prize streak
LOTTO NEWS
Powerball players might want to check their old tickets for another prize worth $1 million.
The ticket's numbers were drawn on March 23, and it matched five white balls while missing the Powerball.
The winner bought it in Puyallup, Washington, and the matched numbers were 6, 23, 25, 34, and 51.
The missed Powerball number was 3, and the ticket is scheduled to expire on September 14.
Lottery prizes: Lump sum vs Annuity
Lottery winners throughout the US must make a tough decision about how they want to claim their prizes.
What is a lump sum payment?
- Lottery winners can accept a one-time cash payout.
- Although a winner would lose a chunk of their payout to taxes, they would likely lose more over time with annual payouts.
What are annual payments?
- Installments are paid out as one immediate payment followed by a series of annual payments.
- This guarantees money to come in for years or even decades, but some winners worry tax rates may increase over time.
"To invest better you need to not only choose a good, low-cost, diversified portfolio," said Charles Weeks, the founding partner of Barrister, via USA Today.
"You will also need to make sure you control your emotions in good markets and bad."
That means Washington lotto players might be prudent to check their recent Powerball tickets before summer.
Lottery officials advise players to sign the backs of their tickets and keep them in a safe, secure place.
The U.S. Sun previously spoke with a lottery expert about advice for winners.
For more related coverage, The U.S. Sun covers Mega Millions and scratch-off winners.
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One man bought a $10 million scratch-off ticket at a deli but lost almost half.
Meanwhile, a $1 million Mega Millions ticket was purchased at Stop & Shop.
Remember to gamble responsibly
A responsible gambler is someone who:
- Establishes time and monetary limits before playing
- Only gambles with money they can afford to lose
- Never chase their losses
- Doesn’t gamble if they’re upset, angry, or depressed
If you or someone you know is struggling with gambling addiction, call the National Gambling Helpline at 1-800-522-4700 or visit the National Council on Problem Gambling online.