How can they protect their Mega Millions and Powerball winners

Mega Millions players can let their dreams continue.

With no one to hit all six numbers drawn on Friday, the jackpot reached about $ 376 million. And Powerball, with the next statement set for Saturday night, is $ 341 million.

Of course, due to taxes, those advertising amounts are not the ones you would get if you managed to overcome the astronomical chances of a single winning ticket (1 in 302 million for Mega Millions and 1 in 292 million for Powerball).

However, the sudden wind in your life would probably feel overwhelming, experts say. And while you may be eager to claim your winnings, experts say it’s best not to rush to the lottery on the day you are lucky.

In other words, take a deep breath.

“The first thing I would recommend is to build a team of professionals to deal with the many aspects of getting into this kind of money,” said certified financial planner Doug Boneparth, president of Bone Fide Wealth in New York.

That team should include an accountant, a financial advisor and a lawyer. Here are some other considerations if you hit the jackpot.

You can choose between taking your earnings either as a lump sum or as a rate paid for a period of 30 years. For the $ 376 million Mega Millions jackpot, the cash option is $ 287.4 million. For the $ 341 Powerball prize, that amount is $ 262.5 million.

Experts usually recommend that you get the money at once – with which most winners go.

“Taking the flat-rate distribution would be the preference,” Boneparth said. “By doing this, you can control your money more.”

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However, he added a warning.

“If you’re not disciplined or you’re afraid of how to invest it even with assistance, annuity may be the better option,” Boneparth said.

Before the money reaches you, 24% will be withheld for federal taxes. For Mega Millions’ $ 287.4 million cash option, that would mean that about $ 69 million will come out on top to leave you with $ 218.4 million. For the $ 262.5 million Powerball lump sum, the withholding would be $ 63 million, leaving $ 199.5 million.

However, this is not the end. The maximum marginal rate of 37% applies to incomes over $ 518,400 for single taxpayers ($ 622,050 for married couples filing together), which means they would owe much more at the time of taxation. And, there may be withholding or due state taxes.

“In some places, when you consider city, state and local taxes, you might look [close to] 50% goes to taxes, “Boneparth said.

There may be strategies to reduce what you pay in taxes, which is why it is essential to have a tax advisor on your team.

If you can’t claim your prize anonymously – it depends on the state – you may want to skip the city for a while. Unwanted attention can come from both the public and the extended family.

“The fifth uncle, once removed, might catch you,” Boneparth said. “Find somewhere comfortable and escape.”

In addition, if you want to share some of the money with family or friends, plan ahead for these gifts, Boneparth said.

“You want to avoid being hit repeatedly,” he said. “You can set expectations ahead of time. When planning really comes into play.”