Financial advisors outline steps for potential Powerball $748 million winners
Experts advise lottery winners to remain discreet, secure their ticket, and consult tax and financial professionals before deciding on a lump-sum or annuity payout.
A $748 million Powerball jackpot is up for grabs in the Monday, Aug. 3 drawing, with a cash option of $325.1 million. Financial professionals caution that winners should keep the win private, safeguard the ticket and develop a comprehensive plan before claiming the prize.
Rob Burnette, a financial adviser in Ohio, told USA TODAY that winners should "keep it quiet" and consider anonymity where possible. Attorney Andrew Stoltmann emphasized that a ticket is not legally a win until presented to lottery officials, warning that loss or destruction of the ticket forfeits the prize.
Advisors recommend assembling a team that includes a tax attorney, tax accountant and financial adviser to evaluate payout options. Mark Steber, chief tax officer at Jackson Hewitt, said the choice between an annuity and a lump-sum depends on the winner’s age, goals and state tax rules.
Stoltmann suggested depositing winnings in a brokerage account rather than a bank, as the amount exceeds FDIC insurance limits, and initially investing in short-term U.S. Treasuries. He also advised designating a “fall guy” to refuse loan requests and protect the assets.
State tax obligations vary; for example, California residents pay federal taxes but no state tax on winnings, while New York imposes the highest state tax. Steber noted that multi-state tax situations can be complex and recommended seeking professional guidance.
The Powerball draw occurs three times weekly, with tickets costing $2 and optional "Power Play" multipliers for non-jackpot prizes.