The winners of the Wed’s $1.5 billion Powerball jackpot. Congratulations!
First, you will have to choose whether to take the prize as an annuity paid over 30 years, or a lump-sum payment right now. If you take the prize as a one-time cash payment, you will get a mere $930 million, before taxes. And you will have to pay taxes twice: on the price when you win it and on the income you get by investing it.
Why not taking the whole $1.5 billion by taking it in installments? By doing so you end up paying less tax.
Take the annuity if you were going to keep it under your mattress!
But I would favor lump-sum investing!
Valentine’s Day is right around the corner. Do you get your lovely wife a necklace,…