NEW ROCHELLE, NY — Lottery winners are more likely to declare bankruptcy within three-to-five years than the average American. Nearly one-third of lottery winners eventually declare bankruptcy. This according to the U.S. Consumer Financial Protection Bureau.
If you are willing to take that risk and want to play the Mega Millions read on!
CNBC explains how a $600 million jackpot is really more like $242 million.
Most winners take the cash option so for the $600 million Mega Millions jackpot that is $442.4 million.
The feds wants a 24% tax withholding right off the top and next tax season another 13% leaving about $278.6 mm.
New York State will want another 8% leaving about $242 mm.
If you think you can live off $242,000,000 then by all means run out and get yourself a ticket before Tuesday night’s drawing.
Be sure to line up a lawyer, tax advisor and investment advisor before you go.
The good news you can count on avoiding all the hassle and the risk of financial ruin because the odds of winning are 1 in 302,000,000.
But the real point of any big lottery is to give players a chance to fantasize of what they would do with all that money. And hey, someone will eventually win so maybe buy tickets. Your odds of winning will still be infinitesimal but what the heck.