What happens if you win Powerball, Mega Millions? - WSPA.com

ADVERTISEMENT
Bookmark and Share

What happens if you win Powerball, Mega Millions?

Posted: Updated:
Powerball fever grips nation as jackpot reaches record high Powerball fever grips nation as jackpot reaches record high
SARASOTA COUNTY, FL (WFLA) -

Millions across the country are in line hoping a small investment will pay off.

The Powerball game hit a record-high $600 million dollar jackpot on Friday, making it the world's second largest lottery prize.

On top of that, Friday night is the first Mega Millions drawing in Florida.

So with hundreds of millions of dollars on the line, what to do with all that cash?

If you are the sole winner of the Powerball jackpot, you could win an estimated prize of $600 million, paid over 30 years, or take a cash payout of $376 million.

A Mega Millions winner could receive $190 million over 26 years, or take a lump sum of $140 million.

The reason for lump sums?

A Florida lottery spokesperson explained the lump sum is the cash the lottery has on hand.

For example, the official said for the $190 million Mega Millions jackpot, the Florida Lottery only has $140 million of cash on hand.

So if you choose to get your prize as payments over the next 26 years, the Florida Lottery would invest that $140 million in a federal bond, and over time, give you the full $190 million prize.

If you choose to get the lump sum, then the Florida Lottery would give you the $140 million they have on hand, and you can do what you want with it.

So if Lady Luck ends up being on your side this weekend, you'll have to find a place to store that cash.

Sarasota financial planner Scott Barcomb said, "These are nice difficult decisions to have."

Barcomb runs Barcomb & Associates, LLC.  He says an instant winner should first splurge a little.

Barcomb says, "If you get a big chunk of money, the natural inclination is you're gonna go out and spend a bunch and I think you should indulge that to a certain amount but you set a limit on that."

Of course, you know you have to pay some fees.

Florida Lottery officials say 25% of your winnings are paid in federal taxes.  You also have to list your winnings as income on your W-2 form.

So after all that, Barcomb suggests you invest in a diverse portfolio and live off the interest.

He also advises the winner to choose the lump sum.

Barcomb says, "If you crunch the numbers, the reason why the vast majority of people do take the lump sum is because if you invest it wisely and you're prudent with it, in the long run, it's gonna work out much better for a financial standpoint, you're gonna wind up getting a lot more money if you take a lump sum."

But before you make these decisions, you have to win.  In Florida, you are required to reveal your identity if you win.

It could be a press conference, or it could be your name and city on a press release, but either way, your name will get out there.

The Mega Millions drawing is Friday night, and the Powerball drawing is Saturday.

Be sure to watch News Channel 8 at 11 to get the winning numbers!

FOLLOW US ON TWITTER: @wflatampa

  • 8 On Your SideMore>>

  • Community reaches out to Spring Hill family after theft of lawn equipment

    Community reaches out to Spring Hill family after theft of lawn equipment

    Monday, September 1 2014 6:41 PM EDT2014-09-01 22:41:35 GMT
    Michael Depace wants to say "thank you" and give a huge hug to everyone that reached out after a thief stole $3,500 worth of lawn equipment from him.
    Michael Depace wants to say "thank you" and give a huge hug to everyone that reached out after a thief stole $3,500 worth of lawn equipment from him.
  • FL vehicle registration renewal fees drop

    FL vehicle registration renewal fees drop

    Monday, September 1 2014 11:48 AM EDT2014-09-01 15:48:49 GMT
    That little gift you get from the state on your birthday every year, to renew your car tag, is going to be cheaper starting Monday.  The cut will save drivers about $13 to $25 depending on the size of their vehicle.
    That little gift you get from the state on your birthday every year, to renew your car tag, is going to be cheaper starting Monday.  The cut will save drivers about $13 to $25 depending on the size of their vehicle.
  • Mold takes over St. Pete condo, creeps into neighbors' homes

    Mold takes over St. Pete condo, creeps into neighbors' homes

    Friday, August 29 2014 5:48 PM EDT2014-08-29 21:48:06 GMT
    Josephine Ramos is literally sick about the toxic black mold growing in the St. Petersburg condominium beside hers. She's been feeling ill for months with headaches and breathing problems. Recently, she had peak inside the condo next doors and couldn't believe her eyes.
    Josephine Ramos is literally sick about the toxic black mold growing in the St. Petersburg condominium beside hers. She's been feeling ill for months with headaches and breathing problems. Recently, she had peak inside the condo next doors and couldn't believe her eyes.
  • NewsMore>>

  • Tampa daycare set to reopen after crash

    Tampa daycare set to reopen after crash

    Tuesday, September 2 2014 3:44 AM EDT2014-09-02 07:44:21 GMT
    A Tampa kindergarten and daycare center is set to reopen four days after a suspected drunk driver crashed through the wall into a classroom.
    A Tampa kindergarten and daycare center is set to reopen four days after a suspected drunk driver crashed through the wall into a classroom.
  • Pasco County couple survive a week adrift at sea

    Pasco County couple survive a week adrift at sea

    Tuesday, September 2 2014 3:36 AM EDT2014-09-02 07:36:06 GMT
    A Pasco county couple is recovering after spending a week adrift in the Gulf of Mexico. They were trapped 80 miles off shore without any food and very little water for seven days.
    A Pasco county couple is recovering after spending a week adrift in the Gulf of Mexico. They were trapped 80 miles off shore without any food and very little water for seven days.
  • Palm Harbor strip club hit & run victim makes plea

    Palm Harbor strip club hit & run victim makes plea

    Monday, September 1 2014 9:33 PM EDT2014-09-02 01:33:46 GMT
    New video shows the violent incident early Friday morning, outside "Silks" strip club on US 19 in Palm Harbor. Bouncer Doug Berube and the club DJ. wanted to talk to a guy in a car about an earlier incident. The driver shoved it in reverse, hit the gas, and backed over Berube. He has a plea for the driver....
    New video shows the violent incident early Friday morning, outside "Silks" strip club on US 19 in Palm Harbor. Bouncer Doug Berube and the club DJ. wanted to talk to a guy in a car about an earlier incident. The driver shoved it in reverse, hit the gas, and backed over Berube. He has a plea for the driver....
  • Top StoriesTop StoriesMore>>

  • SWAT Called To Home After Man Locks Himself Inside With A Gun

    SWAT Called To Home After Man Locks Himself Inside With A Gun

    Tuesday, September 2 2014 2:04 AM EDT2014-09-02 06:04:32 GMT
    Greenville County Sheriff's Office SWAT responded to a domestic disturbance call on Stallings Road Monday night. 
    Greenville County Sheriff's Office SWAT responded to a domestic disturbance call on Stallings Road Monday night. 
  • Laboring On Labor Day: Tradition and Economic Opportunity

    Laboring On Labor Day: Tradition and Economic Opportunity

    Monday, September 1 2014 9:15 PM EDT2014-09-02 01:15:21 GMT
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
  • Woman Charged With DUI After 2 Children Die In Boating Accident

    Woman Charged With DUI After 2 Children Die In Boating Accident

    Monday, September 1 2014 5:08 PM EDT2014-09-01 21:08:30 GMT
    Dawn Thompson, 53, of EasleyDawn Thompson, 53, of Easley
    Dawn Thompson, 53, of Easley is charged with two counts of felony DUI  after a five-month old baby and a nine-year old child died after a boat capsized on Lake Hartwell Sunday in the Townville area.

    Dawn Thompson, 53, of Easley is charged with two counts of felony DUI  after a five-month old baby and a nine-year old child died after a boat capsized on Lake Hartwell Sunday in the Townville area.
Powered by WorldNow

250 International Dr.
Spartanburg, S.C. 29303

Telephone: 864.576.7777
Fax: 864.587.5430
Email: webmaster@wspa.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.