Aug. 3, 2026, 5:20 p.m. ET
Millions of {dollars}, $748 million to be exact, are on the road tonight.
As lottery gamers await the Monday, Aug. 3 drawing and the possibility that their $2 ticket might be value practically three-quarters of a billion {dollars}, financial planning for a potential jackpot win should be on their thoughts, particularly in the event that they’re feeling fortunate.
With the prize pot nearing the highest 10 largest jackpots within the recreation’s historical past, having a recreation plan in place shouldn’t be solely sensible, however it’s additionally needed. Claiming that a lot cash, based on financial specialists, will probably draw taxes, grifters, family and friends members.
Therefore, the primary and most necessary piece of financial recommendation is: “Don’t shout your win from the rooftop,” Rob Burnette, financial and funding advisor at Outlook Financial Center in Troy, Ohio, previously told USA TODAY.
“If you’re fortunate sufficient to win the lottery, hold it quiet. Get organized and make a plan. Consider staying anonymous, if it’s a possibility,” Burnette added.
Here’s what financial advisors recommend gamers do in the event that they hit the $748 million jackpot.
How a lot is the jackpot, and what are my odds of profitable?
A Powerball jackpot of $748 million is up for grabs forward of tonight’s drawing. It has a money worth of $325.1 million and is the biggest Powerball jackpot since a $1.817 billion prize was received in Arkansas on Christmas Eve.
While the chances of getting struck by lightning are significantly increased than the chances of hitting all the profitable numbers and taking house the jackpot, there isn’t any hurt in attempting. You might be the one in 292.2 million to take the prize house.
The jackpot was final received in May by two gamers, one in Florida and one in Texas, who cut up the $20 million prize, based on Powerball.
What to do when you’ve received the Powerball jackpot
Lie low for some time and hold the ticket safe, possibly in a protected, till you declare the prize at your state’s lottery headquarters, based on financial advisors and specialists.
“The winner is not a true legal winner until the ticket is presented to lottery officials,” mentioned Andrew Stoltmann, an legal professional who represented six lottery “losers” that lost their winnings as a consequence of varied funding scams or poor administration. “If the ticket is lost or destroyed, the winner is, as a matter of law, out of luck.”
Steve Azoury, proprietor of Azoury Financial in Troy, Michigan, suggested profitable gamers to rent a tax legal professional, a tax accountant and a financial advisor.
“They’ll work hand in hand to figure out (a) plan,” Azoury added.
The plan will go over which payout choices can be found:
- Annuity: One speedy fee adopted by 29 annual funds, with every fee being 5% bigger than the earlier one.
- Lump sum: A one-time fee equal to the overall money within the jackpot prize pool.
Whether you should take the one-time fee or go together with the annuity choice, will depend on you, particularly your objectives, your age, and what lottery guidelines are for beneficiaries to proceed receiving funds.
The measurement of the lottery jackpot, in addition to present and projected earnings, are additionally some issues to contemplate as you consider and talk about payout choices, mentioned Mark Steber, chief tax officer at tax-preparation service Jackson Hewitt.
The plan should additionally embrace a “fall guy,” based on Azoury. “That’s the individual or advisor who retains you from giving loans to anyone, who tells individuals, ‘All the cash’s tied up in investments, not accessible. We don’t have anything accessible that can assist you out, and we’re not eager about your venture,'” he added.
Since the sum is too large to be covered by Federal Deposit Insurance Corporation (FDIC) insurance, winnings should be deposited in a brokerage account of a major broker-dealer, such as Merrill Lynch or Goldman Sachs, and initially invested in short-term U.S. Treasuries until more concrete investing decisions can be made, Stoltmann said.
How much do you net? And how quickly can you get it?
It depends. Complex state laws and how you decide to “take” your money will impact how much cash you’ll ultimately net, but you could see some activity in your bank account in a few weeks, Azoury said. Claim periods do vary by jurisdiction, he added.
Since you’ll likely be propelled into the highest federal tax bracket after your win, your state of residency and where you bought the winning ticket can greatly impact what you pay in state taxes.
For example, if you’re a California resident and purchase your ticket there, then you pay the 37% federal tax rate; however, you won’t have to pay a state tax because California doesn’t tax lottery winnings, Steber said. New York, on the other hand, has the highest tax rate on lottery winnings.
Now, in another example, if you’re a California resident on vacation in Rhode Island and you decide to buy a lottery ticket there and win, you’ll have to declare your winnings on your federal and California tax returns and file a non-resident Rhode Island tax return.
While it’s unlikely that you’ll have to pay taxes on the same income in two states, the inner workings of multi-state tax issues can be complicated, Steber said. You should, though, claim a tax credit for the Rhode Island taxes on your California return so you won’t be taxed twice.
“This is the place a tax skilled actually turns out to be useful,” Steber added. “State taxes might be very tough.”
How to play the Powerball
Playing the Powerball is simple:
- Buy a $2 ticket, wherever tickets are bought.
- Think about which six numbers you’ll pick.
- Select five “white” numbers between 1 and 69, and one “pink” quantity between 1 and 26 for the Powerball.
Players may also add “Power Play,” a feature that multiplies most non-jackpot prizes. The “Power Play” multiplier can multiply winnings by: 2X, 3X, 4X, 5X or 10X.
If you’re not feeling particularly lucky or want the computer to do the work for you, the “Quick Pick” option is available. All of the numbers selected with the “Quick Pick” option are computer-generated.
Players must match all five white balls in any order and the red Powerball to win the jackpot. Drawings are held every Monday, Wednesday, and Saturday nights at 10:59 p.m. ET. If no one wins the jackpot, the cash prize will continue to tick up.
Contributing: Medora Lee, Rachel Barber, USA TODAY
