A LOTTERY winner who won a jackpot worth more than $200 million has already lost more than half of it despite only claiming the prize on Monday.
The Powerball winner of the $222.6 million June 10 jackpot followed in the footsteps of previous Powerball winner Edwin Castro by choosing the lump sum option.
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Castro won the biggest Powerball jackpot ever, $1.76 billion, in 2022, but took home just $628 million.
Now, the latest winner announced by the New Jersey Lottery is expected to take home substantially less than the jackpot, for North Jersey. with.
Lottery officials revealed Monday that last month’s anonymous jackpot winner will receive just $71 million.
He won the prize with a Quick Pick ticket purchased in Camden County at the Preet Food Mart in Lindenwold.
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‘GOOD GUY’
In New Jersey, jackpot winners have the right to remain anonymous, so little is known about the overnight millionaire.
However, officials revealed that the individual was still surprised by the victory almost a month later when he came to receive the award.
They were “still trying to figure out the prize” when they went to lottery headquarters to make their claim, authorities said.
Only when they heard about the victory on the radio did the individual realize he had won.
“Something told them to check their tickets and they got the surprise of a lifetime,” authorities said.
The winner immediately called a friend after finding out about his win.
Meanwhile, the store clerk who sold the winning ticket revealed that the winner was a regular customer who would spend about $60 a day on the lottery, according to the Fox News affiliate. WLFX.
“He’s a great guy,” the clerk told the channel, adding that he is very happy to have helped “build someone’s life.”
Lottery executives added that the winner had no plans for the windfall.
However, when he arrived at the offices, he was faced with a dilemma that all big jackpot winners face.
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 needed 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.
Either opting for a reduced lump sum of cash that would be received immediately or taking the full prize in annual installments over the next two decades, tax-free each year.
The winner chose the lump sum of just over US$104.7 million.
However, after federal and state taxes, that amount reduces to about $71 million, according to NJ.com.
LIFE CHANGING
Meanwhile, another New Jersey resident won a whopping $1.128 billion in the Mega Millions jackpot.
The ticket was drawn on March 26, but no one came forward to claim the state’s biggest jackpot prize.
“The New Jersey Lottery recommends that the winner sign the ticket, make copies of it, contact professional legal and financial advisors, and call 1-800-222-0996 to file the claim,” lottery officials advised.
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This story originally appeared on The-sun.com read the full story
