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WON POWERBALL JACKPOT?

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!

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