A LOTTERY winner explained how she won $1 million but instantly lost $400,000 because of one decision.
Jo Jones of Pembroke, North Carolina, about 40 miles southwest of Fayetteville, pocketed the sum of money that changed her life.
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Jones purchased a $10 million Spectacular ticket at a local convenience store.
She purchased and played the scratch-off at a Kwik Stop on U.S. 74 in the town of Rowland.
Jones shared how she reacted when she realized she had won big.
“I started screaming and running around the store,” Jones said. North Carolina Education Lottery.
“I ran up to the front and said, ‘I won $1 million.’”
Jones, a grandmother of 13, had her prize reduced to $600,000 after she went to claim her prize.
Big lottery winners have the option of receiving their winnings as a lump sum or through annuity payments.
Annuity payments are distributed in annual payments of $50,000 over 20 years.
A fixed amount would allow the winner to take home all the money in one go, but this option would be hampered by fees and taxes.
Jones’ $1 million win was reduced to $600,000 when she chose the lump-sum option.
His net worth was further reduced to $429,014 after withholding state and federal taxes.
Jones said he would use this huge amount of money to help his family.
“I always said if I ever won the lottery, I would help my children,” she said.
“I will help them in any way I can.”
Lottery winnings: lump sum or annual fee?
Players who win big on lottery tickets typically have a choice to make: lump sum or annual fee?
Both payment methods can affect how much money you receive from your prize.
Annuities are paid slowly in increments, usually over 30 years.
Lump sums are paid all at once, but in smaller amounts since taxes are withheld all at once. This means 24% of your prize goes to Uncle Sam immediately. Many states also tax earnings.
Annuities can give winners time to create the financial infrastructure necessary to receive a life-changing amount of money, but lump sums have the advantage of being taxed only once.
It’s also worth considering inflation when making a choice, as payments don’t adjust to the value of a dollar. This means you will likely receive less valuable money at the end of an annuity.
Each state and game pays prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have differing opinions on the possibility of get the lump sum or take the annual fee.
“It’s like a dream,” Jones added.
“It still seems unrealistic.”
The $10 Million Spectacular launches in December 2023 with five $10 million prizes and 20 $1 million prizes up for grabs.
There are now three $10 million top prizes and 11 $1 million prizes still available.
WIN THE LOT
Lottery players should check their tickets to see if they could suffer a similar fate.
An urgent warning has been issued to lottery players in Missouri as a $1.5 million jackpot has gone unclaimed, The US Sun previously reported.
This story originally appeared on The-sun.com read the full story
