DES MOINES, Iowa (NEXTSTER) — Someone from New Jersey overcame the odds Tuesday night to win the $1.12 billion Mega Millions jackpot, snapping a winless streak dating back to last December.
The numbers drawn were: 7, 11, 22, 29, 38 and 4. The winning ticket was sold in New Jersey, according to the Mega Millions website.
A Match 5 + Megaplier winner was sold in New York Match 5 winners were sold in California, Colorado, Florida (2), Georgia (2), Illinois, Indiana, Michigan, New York (2) and Ohio.
As of the latest drawing, no one has matched all six numbers and won the Mega Millions jackpot from December 8. That’s 30 straight drawings without a big winner.
The The award is the eighth largest In the history of the US lottery.
The $1.12 billion jackpot is for one winner who is paid an annuity, including an initial payment followed by 29 annual payments. Most winners choose the cash payout, which will be $537.5 million.
The next big US lottery drawing will be Wednesday night for an estimate $865 Million Powerball Jackpot. No one has won the prize since New Year’s Day, making it 36 drawings without a winner
The The odds of winning both jackpots are steep — 1 in 302.6 million for Mega Millions, 1 in 292.2 million for Powerball — but if you can overcome these odds and secure record-setting jackpots, there’s a Number of step experts The following recommendations. This includes building your team — a financial advisor, a tax advisor and a lawyer are highly recommended — and securing tickets.
Once you’re ready to come forward and claim your rewards, you’ll have a big decision to make: take the annuity option or the cash payment.
The annual option is the dollar amount you’ll often see advertised when it comes to Mega Millions and Powerball. For the former, it is $1.12 billion, and for the latter, $865 million. If you choose this payment method, you will receive a one-time payment, followed by 29 annual payments that increase by 5% each time until they reach your winnings.
The cash option — $537.5 million for the Mega Millions, $416.1 million for the Powerball — refers to the amount game officials set aside to fund the annual option.
If you want your winnings now, you’ll want to select the cash option, but if you want more money eventually, you may prefer the annuity option.
So how do you know what is best for you?
“Most people take a lump sum because they want money, they want to control it,” Robert Pagliarini, president and chief financial advisor at Pacifica Wealth Advisors and author of “The Sudden Wealth Solution,” previously told Nexter. “I honestly think most people are probably better off taking an annual.”
As mentioned, the annual option means you’ll receive another check each year, a slightly larger portion of your lottery winnings. While that annual allowance may seem annoying to a new jackpot winner, it can also help protect you.
For example, let’s say you messed with your winnings one year. Maybe you spent it unreasonably, made some bad purchases or the gift is too far away. If you choose the cash option, “no do-overs, no resets,” Pagliarini explained.
“But with annuities, you redeem yourself every year,” he added. “It might take a few years, it might take five or six years, but eventually you’ll figure it out.”
If you opt for a lump sum cash payment you will see more tax withheld. Each state is required to withhold 25% of a federal lottery tax, and after additional withholding, you lose about 37% of your jackpot to taxes. then, Depends on where you liveYou’ll see more withheld for state taxes.
But, Wisconsin financial advisor Jeremy Keil said earlier Associated Press There is “no bad choice” when it comes to the payment you choose. Keil said Powerball’s annuity assumes a 4.3% investment return on jackpot cash prizes.
“If you think you can beat 4.3%, you should take the cash,” Keil said. “If you don’t, take the annuity.”
Whichever option you choose, if you hit the jackpot, Pagliarini advises teaming up with your experts, signing the ticket and keeping it safe, and “deciding (your payout) as quickly as possible, in a way that you feel comfortable with.” Very comfortable about the decision.”
Mega Millions is played in 45 states plus Washington, DC and the US Virgin Islands. In addition to those states, Powerball is also played in Washington, DC, the US Virgin Islands, and Puerto Rico.
The Associated Press contributed to this report.
