People had a 1 in 175 million chance in hitting the Powerball jackpot. But statistics show that those who do win major lottery drawings have rarely handled that much money in their lives.
"I could handle myself," said Jamy Whitmore, who bought a Powerball ticket on Wednesday night. "There are tricks to make even more money. There are ways to invest, and that's for my family."
Others admitted they had no idea how to handle $550 million.
"There are professionals for that," said Scott Mollohan, of Charleston. "I'd get an attorney. And then an accountant. And then I'd hire another attorney and accountant to keep an eye on the first two."
And that might not be a bad idea. Remember what happened to Jack Whittaker, the West Virginia man who won the jackpot, then squandered his fortune within a decade?
"You'll have friends who will want to help you and maybe you're not at their best interests," said David Nolan, a wealth strategies and investment advisor at McKinley Carter Wealth Services. "Independent professionals don't have specific biases. They don't know your family, they're going to give you objective advice."
He said spending too quickly and trusting loved ones with lump sums often morphs into a financial pitfall for the winner.
Ian McIlvaine, a financial advisor with Wells Fargo, urges players to hire an attorney and accountant before even reporting a winning ticket.
"Have a plan and have a team of professionals," McIlvaine said. "How long do you want the money to last? How much do you want to spend each year?
Winners choose one of two options regarding the Powerball jackpot: They can take a $360 million cash payout OR receive the $550 million dollars over 30 years. That's why McIlvaine said one option favors those who have little experience handling millions.
"For someone who might be not great at investing, I'd take the periodic payments," McIlvaine advised.
Uncle Sam takes a bite out of both winnings, of course. Winners must immediately pay a 35 percent federal tax on the jackpot, on top of a six percent state tax, which leaves them with a little more than $210 million.
But in the 30-year plan, winners would be taxed on their annual allotment, which amounts to roughly $18 million per year. Winners who choose this option are guaranteed the full jackpot by the end of 30 years.
In the cash-payout option of $360 million, the remaining $190 million stays within the multi-state lottery association.
Nicky Orcutt with the West Virginia Lottery issued two reminders for players: sign the back of the ticket and photocopy it immediately. That is one expensive slip of paper to lose.
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