$1 billion Powerball jackpot fuels big-ticket ambitions, but an expert advises caution: go slowly

OMAHA, Nebraska Millions of people throughout the nation will be queuing up at convenience store, grocery, and gas station counters in the hopes of winning the $1 billion Powerball jackpot for this week's drawing.

WHAT STACKS UP IN THIS LATEST POWERBALL JACKPOT?

The new prize for Wednesday's drawing would be the third-largest for Powerball and the seventh-highest in American history. A single player who matches all five numbers plus the Powerball number chosen can choose to accept either the $1 billion prize, which will be paid out over 29 years in annual installments, or a $516.8 million lump amount before taxes. The most recent Powerball jackpot winner received a top prize of roughly $253 million on April 19. Since then, 38 lotteries have taken place without a top prize winner. Until someone wins, the jackpot will keep increasing.

WHAT CAN YOU GET FOR A BILLION DOLLARS?

Almost whatever you desire. Around 200 Bugatti Mistral Roadsters, dozens of eight-seater private planes, or multiple private Caribbean islands may all be purchased with a billion dollars. But Shean Fletcher, a money advisor in Kansas City, Missouri, advised against thinking you could never spend it all.

He mentioned that one thing to keep in mind is that large winnings also come with large tax obligations. Richly valued homes, vehicles, aircraft, and other property typically come with hefty recurrent tax and maintenance costs in addition to the money itself. He said that more than one lottery winner has wasted their fortunes due to the assumption that lottery winners may just spend large sums of money every day indefinitely.

The main misperception we encounter, according to Fletcher, is that there is an endless supply of money, which is untrue.

IF YOU DO WIN, WHAT SHOULD YOU DO?

The winning ticket should first and foremost be secured by keeping it in a secure location, such as a fireproof safe. Then, Fletcher suggested that you begin assembling your "team". Included in it are probably your spouse, a parent, or a sibling, as well as a financial advisor, attorney, and certified public accountant. Following that, you can begin formulating strategies for how you wish to use the funds.

"After the initial excitement, you know, take a deep breath and take it slow," Fletcher said.

Additionally, MEGA MILLIONS JACKPOT SOARS.

While the $1 billion Powerball grand prize is getting most of the headlines, the Mega Millions lottery jackpot is also climbing to enormous heights. That jackpot, the seventh-largest in the history of the game, was at $640 million prior to a drawing on Tuesday night.

WHY ARE LOTTERY JACKPOTS GETTING SO BIG NOW?

The games have been created in this manner. Math and more challenging odds are to blame for such large payouts. The odds of winning the Powerball lottery increased from 1 in 175.2 million to 1 in 292.2 million in 2015. The odds of winning the top prize increased to 1 in 302.6 million with the introduction of Mega Millions two years later. Since those modifications, the U.S. has seen some of its highest lottery payouts.

WHAT ARE THE BIGGEST JACKPOTS EVER WON IN AMERICA?

The largest — a whopping $2.04 billion — was a Powerball jackpot that hit on Nov. 8, 2022, with the winning ticket sold in California. The next largest jackpot was also a Powerball prize, at $1.586 billion on Jan. 13, 2016. But that prize was split among three winning tickets, sold in California, Florida and Tennessee. The third, fourth and fifth largest were each Mega Millions prizes, at $1.537 billion going to a single winner in South Carolina on Oct. 23, 2018; $1.35 billion won in Maine earlier this year on Jan. 13; and $1.337 billion won in Illinois on July 29, 2022.

Purchasing more than one ticket only marginally increases your chances of winning. Experts advise against spending money you'll miss on additional tickets because the odds are so long. Spending $10 for five number combinations increases your chances of winning the jackpot from 1 in 292.2 million with one ticket to 5 in 292.2 million with one ticket. It still applies if you spend $100. Therefore, even if you spend a lot of money on tickets, it's highly unlikely that you will win the jackpot. According to lottery authorities, the typical player purchases two or three tickets, indicating they are betting money on a dream that has very little chance of coming true.