Friday Lottery Drawing At Record $540 Million

By Chuck Sudo in News on Mar 29, 2012 9:45PM

Once upon a time, if someone asked us what we would do if we won the lottery, we would have said we'd take the lump sum payment and throw it all in checking. If we won tomorrow's Mega Millions jackpot, which now stands at a record $540 million, we wouldn't tell a goddamn soul while contacting a good financial planner to set things up so we wouldn't have to work again.

(You know how many lottery winners go broke? More than a few.)

The original projection for the Mega Millions was $476 million, and the jackpot has been growing as anticipation builds that someone may finally win for the first time since a Georgia woman won $72 million in January. California Lottery spokesman Elias Dominguez indicated he's never seen anything like this. "This is uncharted territory," he said.

The lump sum payment, before taxes, is still a sizable $489 million. CBS Chicago and Sun-Times financial expert Terry Savage agrees the wise course of action would be to bring in some financial planners before a winner claims his jackpot. And not tell anyone he lottoed.

“You’re not required to come forward although it’s a thrilling moment, I’m sure. But having that much money can really ruin lives.”

Savage also weighs the advantages of accepting the lump sum over the annual payments. With the former, nearly half will go back to the government in taxes. With the annuities, you have to start worrying about future tax rates.