A Lottery jackpot is a great way to get rich, but how do you invest the money? It’s best to seek professional advice, not just to claim the prize and spend it all. Here are some tips:

You can invest your winnings in an annuity, which will pay you a fixed amount over time. In general, the payout is less than the advertised jackpot, because taxes are deducted from the payout. But if you’d rather spread out your lottery payout over several decades, you can choose the annuity option. This option provides near-guaranteed income and spreads out the advertised jackpot over 20-30 years. Annuity payouts are often higher than lump-sum payments, and the final payment should be the largest of all. Annuities are taxed differently, and you should check the specifics of your lottery payout to see how much taxes you’ll be paying.

Powerball and Mega Millions jackpot winners are usually given options. Mega Millions jackpot winners can either receive the entire amount at once or choose to receive it in 30 annual installments. Powerball jackpot winners must choose between the two payment options during the claim process at the Lottery office. This is a way to avoid paying taxes on the winning amount. And while it sounds like a dream come true, it’s essential to make a plan for your money so you don’t lose it without planning.

Jack Whittaker was the lucky winner of the $314 million lottery jackpot in 2002. It was the largest lottery jackpot ever won by a single ticket. Despite the huge fortune, he faced tragedy and personal loss. This article originally appeared in The Washington Post Magazine on Jan. 30, 2005. In the same article, we read about Brenda-the-biscuit-lady who was unable to stop dreaming of a six-figure windfall.