If it Can Happen to Him Twice, it Can Happen to You Once, Right?
Well, it happened again. Some lucky soul won the lottery, but in a way you may not expect. You see, Bruce Magistro of Long Island won the lottery for the second time.
Not cool, Bruce. Not cool. Okay… actually it’s pretty cool.
Magistro spent $5 in 2012 and won $1 million. Fast forward to this month, Bruce spent $2 and won $1,000 a week for life.
Magistro was able to use the 2012 winnings — $33,090 a year after taxes — to stay home and take care of his wife Yvonne, who died of cancer in 2014. “The last time… it gave me the opportunity to stay home with my wife for three years,” Magistro said. “This time, hopefully, I’ll invest it and make more money off of it.”
If Bruce can win twice, you can definitely win once, right?
If you do get so lucky, there are a few things that maybe you should keep in mind about lottery payments so you aren’t too overwhelmed when that exciting day comes.
First of all, the lottery withholds 25% of all winnings for federal tax, no matter what. After that, depending on your tax bracket and where you live, another 6% to 9% goes to state taxes.
You may be able to have the option to decide between lump sum and annuity payments, both of which have their benefits.
If you’re extremely irresponsible with your money, a lottery annuity may be the way to go. If you’re not too smart with your finances and you are awarded a lottery lump sum payout, you might be tempted to blow it all in a few months. So when choosing between lump sum and annuity payments, perhaps an annuity is best, because you will get a portion of your winnings every year. That way, even if you screw up the first year, you’ll have more winnings coming next year.
If you’re looking to use your winnings a little more responsibly, however, a lump sum could benefit you.
More than $6 million is paid every year through structured settlement lump sum payouts and the average for these payouts are around $324,000. Receiving that amount of money at once can help you pay off any outstanding debt, student loans, start a new business venture, buy a new home, and much more.
It depends on the situation when choosing between lump sum and annuity payments, but it’s important to be as responsible as you can be with the money — not like these 21 fine people — and you do so, you will be much happier with your winnings.