A GROUP of friends became millionaires overnight after winning a historic lottery prize, however a sneaky clause means they will lose more than half their money.
Jackpot winners in Michigan, who chose to remain anonymous, won the $825 million Powerball after purchasing the winning ticket on New Year’s Day.
The winners, who call themselves “The Breakfast Club,” plan to share one of the largest Powerball fortunes in American history.
The numbers drawn were 12, 21, 42, 44, 49 and the Powerball was 1, according to Michigan Lottery Connection
“On New Year’s Day, the lives of The Breakfast Club lottery club members changed forever when they won the $842.4 million Powerball Jackpot,” said Lottery Commissioner Suzanna Shkreli.
“Big jackpots are good news for lottery retailers like the Food Castle of Grand Blanc, who will receive a $50,000 bonus commission for selling the winning ticket, and for Michigan schools, who received more than $1 billion in lottery revenue in each of the last five years.”
The trio were known to buy tickets together when lottery jackpots rose to a hundred million or more.
Mark K. Harder, an attorney for the friends, said this was big news for them.
“As you can imagine, club members have felt a lot of emotions since realizing their ticket was ‘the one,’” Harder said during the event. Press conference.
“They are elated and overwhelmed, emotional and nervous.
“They have gone from shock and sleepless nights to thinking carefully about how this once-in-a-lifetime event will transform their lives.”
However, before The Breakfast Club claimed their money, more than half had already been taken from them, leaving them with just $305 million.
This is because the trio chose to receive a single payment, which will be heavily taxed.
The group would lose about 24% on federal taxes and 4.25% on state taxes.
‘A COMFORTABLE LIFE’
The group doesn’t seem too bothered by the extra fees.
It has been revealed that The Breakfast Club plans to use their money to travel, retire early and share their wins with their loved ones.
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 establish 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 take the fixed amount or take the annual fee.
“This award will positively affect our family for generations to come,” said a club member.
“Until now, we have led a comfortable life and planned to retire someday.
“Now, we are not financially tied to a specific calendar. The world – and our opportunities – have opened up in incredible ways.
The group purchased their legendary ticket at the Food Castle convenience store in Grand Blanc, where a press conference about their victory was held.
The store received $50,000 from ticket sales, which the owner revealed would be split among the store’s employees.
“Selling the winning Powerball ticket was great for our business,” said Food Castle of Grand Blanc owner Bill Nannoshi.
“We will donate every penny of the $50,000 to our employees and community.”
ANOTHER POWERBALL VICTORY
The Breakfast Club isn’t the only people who won big playing Powerball.
It was announced on June 10 that one lucky player won the $223 million jackpot.
The lottery winner matched all six numbers, according to Power ball.
The winning numbers were 3, 10, 33, 58, 59 and the red Powerball was 9.
Monday’s Power Play was 2x, but the winner did not play.
The location of the winning ticket has not been released to the public at this time.
However, just like The Breakfast Club, the winner will only take home half the prize, earning just $104.7 million.
This story originally appeared on The-sun.com read the full story
