Powerball, Mega Millions Top $1 Billion: What to Do If You Win

Neither jackpot has landed in weeks. Powerball is now estimated at $600 million for Saturday night, with a cash option of about $246 million. Mega Millions climbs to $403 million for Friday, with a $162.1 million cash option. Together, that’s more than $1 billion.

The odds, of course, haven’t changed. Powerball odds are 1 in 292.2 million, and Mega Millions odds are 1 in 290.4 million.

The Money Isn’t All Yours

Take the Powerball cash option. After the mandatory 24% federal withholding, that $246 million drops to roughly $187 million. If the winner falls into the top 37% bracket, the final amount is closer to $155 million. Washington has no state income tax, which helps.

Still a lot. But that’s why experts say the first moves matter.

Photo by Tim Boyle/Getty Images

Your First Moves, According to the Experts

The first rule is to stay quiet. You can jump around your living room, but financial advisors say to hold off on telling friends and family until you have a plan.

Next, make copies of the front and back of the ticket and lock the original in a safe or safe deposit box. Experts also say to hold off on signing it until your lawyer and accountant have reviewed the rules.

Then build your team before you claim anything: a lawyer, an accountant, and a financial advisor experienced with large sums.

Washington winners should plan for publicity. State law makes a winner’s name and town public. A trust can add a layer of privacy, but if the lottery receives a public records request, it can release the trust documents. So change your phone number and consider a new PO box before the requests arrive.

Spread the money across multiple banks, since federal deposit insurance covers only $250,000 per account. Write down your goals, including charity, and set a monthly budget. Whitworth University economics professor Robin Henager has said many winners “haven’t really practiced managing money.”

For Washington players, a ticket is a cheap daydream. Play for fun, but keep the plan ready, just in case.