4 Negative Effects of Winning the Lottery That Everyone Ignores

 Four Negative Effects of Winning Lottery. Everyone Ignores

It's as easy as it sounds: Pick 6 numbers, match those drawn on TV and win millions.

The ultimate goal of many is to win the lottery. It's easy to imagine what you would do with millions of dollars. This is why it's fun to talk about it at the dinner table. Is winning the lottery a curse?

Here are five common sense lotto realities everyone overlooks.

What are your chances to win the Lottery's Jackpot?

Although many people purchase lottery tickets in the hope of winning, reality is far worse. It is very unlikely that you will win the lottery. Lightning strikes are almost 20000 times more likely. Despite this, millions of people still play each week.

Quick Pick vs. Quick Pick vs.

Are there any "lucky numbers" that can help you win big? These numbers may not give you an advantage when it comes to winning the lottery.

In fact, the quick pick option is more popular than those who choose their own numbers.

Quick Pick is used by more people, so it makes sense that there are more Quick Pick winners. The reality is that the percentages of Quick Pick winners and those using their own numbers are almost equal.

So...Should i Pick My Own Lottery Numbers

It doesn't really make a difference how you pick your numbers. The odds are the exact same.

No matter if you keep using your children's birthdays or ages as your lucky numbers, or if you simply let the machine do the quick pick for you, you still have a chance to win. There is no guaranteed way to pick winning numbers in the lottery.

Negative Side Effects of Winning the Lottery

You are stunned to see the numbers being called. You are about to make a life-changing decision. However, there are downsides to the lottery winnings.

1. Lottery tickets can be used to replace cash, but they are not like cash.

Even if your winning numbers are correct, it's possible to still not be considered a winner. Even worse, if you lose your winning ticket, your prize will not be collected.

Lerynne West was the Iowa's most prized Powerball winner in 2018. When she moved into her new place, she heard about a winning ticket from Iowa. She couldn't find it.

After searching all over, she finally called her daughter and found the winning ticket in her car. Leyrne saw the numbers on her phone and took a photograph of them. She would not have been able collect her $343900,000 prize if she had not found the ticket.

Lottery tickets cannot be treated as cash unless they are signed back. It is best to sign the back of your lottery ticket immediately to ensure that it is safe. This prevents anyone from cashing it.

2. Splitting the Jackpot is possible

Sometimes, the winner doesn't get all of the prize. Sometimes they may have to share their winnings.

A $100,000,000 jackpot may sound incredible, but if four people win, you would only have $20,000,000.

Take the North Carolina Pick-4 lottery, which was valued at $7.800,000. Because 2,000 people had selected the winning numbers (0-00-0), the winners were approximately $3,900 each.

3. You must pay taxes on your winnings

You have to share your winnings with the IRS, even though you won't be splitting them with other lottery players.

All lottery winnings are treated as ordinary income regardless of whether they are taken in the "lump sum", or "annuity". For federal tax purposes, 25% of winnings must be taken by the IRS before you can receive even a dollar. The remainder of your taxes will be based on your income tax bracket. These are due to be paid in the year you file the return.

Apart from the immediate 25% tax hit, you will also have to comply with your state's income tax code and pay tax at your state's ordinary income tax rates.

A ticket purchased outside your state may result in additional penalties. You will be taxed on your winnings in both Arizona and Maryland, even if the winner is from another state. No matter how large or far you win, the government will collect its fair share.

4. The Lottery Win isn't always a "Win"

You can't always claim the prize if you win the lottery. Failure to present your winning lottery ticket within the deadlines will result in you losing the prize.

A Powerball winning ticket was purchased in Georgia in June 2011. The prize cost $77million and the winner had 180 day to claim it. However, no one showed up. In fact, the $77 million prize was forfeited. It is the largest forfeited prize in U.S. History.

No matter where your tickets are located, you must sign it.

Get a financial plan prepared if your Lucky Numbers are drawn

We all have heard stories about lottery winners who go bankrupt a few years later. Nearly a third of all lottery winners go bankrupt. A financial plan is essential to help you deal with sudden wealth when you win a lottery prize.

Here are some quick steps to ensure you're ready for such a big win.

Assemble a Financial Team

It can be very helpful to find a CPA, trusted lawyer, or financial advisor who is experienced in dealing with sudden wealth. They can guide you through the legal, tax and investment implications for your new money and help you to plan for your future.

Before you give any money to management, be sure to ask questions and fully understand what's being suggested.

Don't rush into making decisions

Slowly make investment and purchasing decisions. Take the time to reflect on them. You may feel tempted to purchase a large house, car or other major purchases. However, taking the time to fully understand your financial situation with the help of your financial advisor will help you make informed buying decisions.

Stay out of Debt

Many lottery winners who go bankrupt end up owing a lot of money. Your wealth may allow you to take on more debt due to your ability to repay it, but this can quickly put you in serious financial trouble.

Avoiding debt will help you stay out of financial trouble, and your wealth will last longer.

Don't Quit Your Job

It might seem like the best thing to do is quit your job. However, it's a smart idea to wait until you have an established financial plan. You should keep working while you wait for the winnings to arrive in your bank account. Best lottery number to pick