Lottery is a popular activity that can provide the opportunity to win big money. Many people consider it a fun and harmless form of gambling, and they often have all sorts of quote-unquote systems that they use to increase their chances of winning (like picking lucky numbers and buying tickets at the right store or time of day).
In 2021, lottery sales totaled about $100 billion, making them one of the most popular forms of gambling in the United States. While some of the proceeds go to the winners, most are routed to state and city budgets for a variety of important services. But does it make sense for you to play? That depends on your financial circumstances and if you get more out of the experience than it costs.
When you win the lottery, it’s important to have a financial team in place to help you manage your winnings. This should include a financial advisor and planner, an estate planning attorney, and a certified public accountant to help with taxes. You should also determine whether you’re better off taking your prize in a lump sum or as an annual annuity, which can impact your tax liability and the amount of money that you’ll have available over time. You should also carefully consider your investment goals and be ready for the possibility that you’ll need to sell off some of your winnings to meet your objectives. You can view a sample lottery drawing here.
