A LOTTERY winner who thought she had won a whopping $2 million has had her prize slashed by $700,000 after a forced decision.
The 46, year old, from Michigan, plans to quit her job and go on vacation using the money which she won playing the Michigan Lottery’s Ace of Spades instant game.
GettyThe lucky winner plans to quit her job and go on vacation[/caption]
“I buy lottery tickets regularly always hoping to win big,” said the player, who chose to remain anonymous.
“When I scratched off my Ace of Spades ticket and saw I won $2 million, I was thrilled and couldn’t believe it was real!
“I called my mom right away to tell her the big news.”
“So many Lottery players dream of winning big, and that dream is now a reality for this lucky player thanks to a $2 million win playing the Ace of Spades instant game,” said Lottery Commissioner Suzanna Shkreli.
“Congratulations to the lucky player on her big win!”
The player recently went to the Lottery headquarters to collect her prize, where she was told that if she wanted to take it in one lump sum, she would only be allowed to have $1.3million
She chose this option rather than annuity payments for the full amount, and plans to put a large chunk into savings.
“Winning is a huge relief and is going to allow me to quit my job and relax,” she said.
Recently, two lottery players defied the odds to scoop prizes worth $650,000 each – but suffered a blow thanks to a local law.
The players from California won the amount after matching five numbers in the game of chance.
Their feat would’ve normally saw them land a $1 million sum but they took home $350,000 less.
Prizes in California are allocated based on the number of winners and tickets sold, as reported by The News and Observer.
The players, who have not been identified, bought their tickets from 7-Eleven stores in the San Francisco area.
And the winning slips were bought ahead of the draw on November 26.
No gambler won the draw on November 26, and neither did anyone on Friday.
The prize pot now stands at $541 million, with a cash option of $256 million.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
https://www.the-sun.com/money/13004991/lottery-player-jackpot-prize-money-slashed/