BIG WIN
Anonymous grocery store shopper becomes instant multi-millionaire – but immediately loses $115m when they get lotto cash
The owners of the shop that sold the ticket also walked away with a big price
A COUPLE has hit the jackpot worth $221 million — but they will walk away with only a fraction of the winnings.
Hundreds of thousands of people play the lotto every day — but not everyone walks home with millions of dollars.
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Two lucky New Jersey residents recently scored one of the largest prizes in almost a decade in the Garden State.
The married couple decided to try their chances at a Powerball game on June 10, according to New Jersey lottery officials.
The jackpot that night was $221 million — second in recent times only to the $1.13 billion prize that was picked up in the state back in March.
The duo had realized that someone had won the jackpot and decided to check their ticket.
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"They heard the jackpot discussed on the radio, but some of the reported facts did not match," lotto officials reported.
"However, something told them to check their ticket and they got the surprise of a lifetime."
The couple learned that their Quick Pick ticket was a match.
It was hard for the winners to believe they had really hit it big.
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"When they came to the Lottery for their claim meeting they were still trying to wrap their head around the win," officials said.
CUT IN HALF
Although the lucky pair technically won $221 million, they walked away with much less.
Big winners can usually choose between two different options when cashing in: Annuity payments or a single lump sum payment.
Annuity payments divide up the winnings over a set number of years, usually 30 years.
A single lump sum payment takes out all of the taxes and fees from the original amount and hands it to the winners.
Experts often recommend winners take out the lump sum payment because inflation will seriously decrease the value of annuity payments.
In this case, the winning couple decided to go for the lump sum — immediately cutting their prize almost in half.
The couple walked home with $104.7 million, according to lottery officials.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you'll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out 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 varying opinions on whether to take the lump sum or take the annuity.
SPREADING THE LUCK AROUND
The pair had walked into the Preet Food Mart in Lindenwold — about 15 miles southeast of Philadelphia, New Jersey — to snag their winning ticket.
As is customary, the owners of the market received a small cut of the winnings for selling the ticket.
NJ Lottery Executive Director Carey visited Preet Food Mart the day after the drawing to award the owners, another married couple named Tejinder Singh and Rajvinder Kaur Ghotra, their take-away.
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The couple received $30,000 for selling the ticket and told lotto officials that they planned to travel with the money
"They have never been to Europe and this windfall presents many different opportunities," officials wrote.