What to do if your client wins the lottery
Forget the 401(k) contribution. Ignore your IRA. We’ve got a new retirement plan, and it only costs $2 and a dream.
It’s called Mega Millions. Don’t worry, you can thank us later.
OK, OK, we’re just kidding, but the estimated prize for Friday's Mega Millions drawing is $1.1 billion. There have been only two lotteries ever won, in any game, with a larger jackpot than Friday’s prize, one of which was Mega Millions.
The lucky winner can either opt for the cash payout of $648.2 million or take the prize as an annuity in 30 payments over 29 years. Of course, Uncle Sam will take his share, too, but even after he does, the fortunate individual should probably be able to retire in reasonable comfort with the tens of millions left over.
With that in mind, InvestmentNews asked financial advisers if they would recommend taking the lump sum or the annuity if one of their clients hits it big.