The thrill of the Mega Millions lottery has once again captured the nation’s imagination. Following a weekend devoid of winners, the jackpot has swelled to an estimated $875 million, a staggering amount that makes it the sixth-largest in the history of the game. As hopeful participants dream of claiming this life-altering prize, the focus sharpens on what to do should fortune smile upon them.
Standing at 1 in 302.6 million, the chances of winning the Mega Millions might seem slim, yet hope springs eternal. Should you be the one to defy these odds, advisors urge calm and discretion. In a world where oversharing has become the norm, the first imperative for any lottery winner is to remain silent. Celebratory posts on social media are strongly discouraged, as such revelations invite unwanted attention from those seeking to exploit the newly wealthy.
Advisors like Rob Burnette, from Outlook Financial Center in Troy, Ohio, suggest that winners take a moment to collect themselves. “Keep it quiet,” Burnette stresses. With such formidable sums, it is not only excitement that follows but taxes, potential fraud, and an inevitable array of family and friends who could emerge with hands outstretched, hoping for financial aid. “Get organized and make a plan,” he advises, highlighting the option for anonymity in some states.
When it comes to financial predators, particularly scammers, vigilance is key. Lotto winners are warned about frequent schemes where criminals pose as representatives, attempting to coax them into unethical transactions such as forwarding so-called “taxes” or “fees” or divulging sensitive banking information. Mega Millions is clear in its messaging: They never require winners to pay upfront to collect their earnings.
The interaction with Mega Millions, should you win, is rather straightforward; the organization will not call, text, or email any individual about winning prizes. In some states, winners have the luxury of maintaining their anonymity to shield themselves from the spotlight.
For those fortunate enough to win, plotting the course forward is critical. Steve Azoury of Azoury Financial in Troy, Michigan, suggests immediately securing services from professionals such as tax attorneys, accountants, and financial advisors. These experts work in concert to chart a way forward that mitigates the tax burden and optimizes financial security.
A crucial part of the winning strategy is to have what Azoury calls a “fall guy”—someone who can gently deflect those seeking loans or investments, asserting that your assets are tied up and unavailable for such inquiries.
Mark Steber, chief tax officer at Jackson Hewitt, outlines a myriad of considerations for lottery winners. The choice between a lump-sum payout or annuities, the tax implications on a state and federal level, and the most judicious way to allocate the newfound fortune all hinge on a complex tapestry of laws and individual circumstances. For instance, if you’re a California resident, there are no taxes on lottery winnings, whereas in other states, the tax rates can greatly influence the net amount received.
Once the prize is claimed—something that doesn’t happen immediately, as most winners take time to establish their game plan—it usually takes a few weeks to process. Claim periods do vary by jurisdiction, so winners should consult with the lottery in the state where the ticket was bought. The policies of Mega Millions allow for a range of 90 days to a year from the drawing date to claim the windfall.
In the immediate aftermath of confirming a win, the question arises: Where should you safely keep the money while assembling a team of advisors? Azoury suggests placing the winnings in a brokerage account, which can offer a certain level of insurance across several banks while providing breathing room to make informed decisions.
The next Mega Millions drawing is set for Tuesday at 11 p.m. ET, promising another round of lottery fever. At $2 a ticket, players can elect their own numbers or go with an Easy Pick/Quick Pick. With the possibility of the jackpot climbing ever higher, the allure of becoming an instant millionaire captivates millions, leading eager participants to examine patterns and strategies that might slightly edge the odds in their favor.
As the anticipation builds, only time will unveil the next individual ready to navigate the life-changing journey of winning the Mega Millions jackpot.
