What to Do If You Win the $786 Million Powerball Jackpot: A Simple Guide

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The Big News: Powerball Jackpot Hits $786 Million

Imagine a giant piggy bank that keeps getting fatter because nobody has cracked it open yet. That’s exactly what’s happening with Powerball right now!

• Current jackpot: $786 million (estimated)
• Rank: 9th largest in Powerball history
• Last big winner: Christmas Eve 2025 — a $1.817 billion prize won in Arkansas
• Dry streak: 40 drawings in a row without a jackpot winner (since May 2, 2026)

IMPORTANT POINT
If you hold the winning ticket, you have two choices for getting your money:

1. Cash option (lump sum): ~$341.6 million before taxes — all at once
2. Annuity option: 30 payments over 29 years, with each payment growing 5% per year

Meet Your Guide: Economist Jeffery Degner

Jeffery Degner is a research fellow at the American Institute for Economic Research. Think of him as a money doctor who studies how people make financial decisions. He shared his top advice with FOX Business for anyone lucky enough to win.

Photo: FOX Business

First Things First: Protect Your Privacy

Degner’s #1 rule: Stay invisible if you can.

Your Privacy Checklist

1. Check your state laws — Some states let winners stay anonymous; others require your name go public
2. If anonymity is allowed, USE IT — Don’t post on social media, don’t tell coworkers, don’t call the local news
3. Keep your mouth shut — Degner’s exact words: "Keep your mouth shut."
4. Prepare for "askers" — Long-lost cousins, old friends, strangers with "great investment opportunities" will appear
5. Practice saying "no" — "Develop the habit of saying ‘no’ early and often"

CALL OUT: WHY PRIVACY MATTERS
Going public with a massive windfall is like wearing a sign that says "I have millions — please ask me for money!" It attracts scams, lawsuits, and people who suddenly "remember" they’re your best friend.

Build Your Money Team: Lawyer and Accountant

Before you buy a single thing, hire two professionals:

IMPORTANT POINT
Do this immediately — before you claim the prize. These pros pay for themselves many times over.

Understand the Tax Bite

Taxes are the biggest "hidden cost" of winning. Here’s the simple breakdown:

The Tax Reality

1. Automatic withholding: The lottery takes 24% off the top before you see a dime
2. But wait — there’s more: When you file your tax return, you’ll likely owe even more (top federal rate is 37%)
3. State taxes too: Depending where you live, state tax could take another 0–10%+

SIMPLE EXAMPLE
On a $341.6M cash prize:

• $82M withheld immediately (24%)
• ~$44M more due at tax time (13% difference to 37%)
• You keep roughly $215M — still life-changing, but know the real number!

Choose Your Payout: Lump Sum vs. Annuity

This is like choosing between a giant pizza delivered now or one slice a year that gets slightly bigger each year.

Option A: Lump Sum (Cash Now)

• Get: ~$341.6M upfront (before taxes)
• Pros: Total control, invest immediately, flexibility
• Cons: Big tax hit all at once, easy to overspend

Option B: Annuity (Payments Over Time)

• Get: 30 payments over 29 years
• Special feature: Each payment grows 5% per year
• Pros: Built-in inflation protection, forces discipline, spreads tax burden
• Cons: Less flexibility, can’t access full amount early

Degner’s Verdict:

"When it’s all said and done, they actually are fairly close in the total return."

Translation: Neither is clearly "better" — pick based on your personality. Want control? Lump sum. Want guardrails? Annuity.

The "Do Not Do" List: Mistakes to Avoid

Degner warns winners to hit pause on big life changes for the first few months.

DON’T Do These Things (Yet)

1. No major purchases — No mansions, yachts, private islands, or fleets of cars
2. No financial commitments — Don’t promise money to anyone, don’t co-sign loans
3. Avoid "lifestyle creep" — That’s when small luxuries become "needs" and spending quietly explodes
4. Don’t pay off friends’/relatives’ debts — Generous impulse, but sets a dangerous precedent
5. Don’t quit your job immediately — Give yourself time to think

CALL OUT: WHAT IS "LIFESTYLE CREEP"?
Imagine you start buying $10 coffee every day because "I can afford it now." Then you upgrade to first-class flights. Then you need a bigger house for the "extra stuff." Suddenly you’re spending millions a year just to maintain your new normal. That’s lifestyle creep — and it bankrupts lottery winners.

Smart Money Moves to Make FIRST

Before the fun stuff, handle the boring (but critical) basics:

Your First 90 Days Action Plan

1. Secure the ticket — Sign it, photograph it, store in a safe place (safe deposit box ideal)
2. Hire your team — Tax attorney + CPA (see above)
3. Claim wisely — Follow your lawyer’s advice on timing and entity structure (trust, LLC, etc.)
4. Pay off YOUR high-interest debt — Credit cards, personal loans, anything >7% interest
5. Set up an emergency fund — 6–12 months of expenses in a safe, accessible account
6. Create a "spending pause" rule — No purchase over $X without 30-day wait + advisor approval
7. Learn the basics — Read 2–3 books on sudden wealth / investing (your CPA can recommend)

Powerball Basics: Tickets, Odds, and Where to Play

Just for context — here’s how the game works:

PERSPECTIVE
You’re more likely to be struck by lightning while singing "Happy Birthday" than win the jackpot. But hey — someone does win eventually!

Summary: The Winner’s Roadmap

If you’re holding that golden ticket, here’s your simple priority list:

1. STAY QUIET — Protect your identity above all else
2. HIRE PROS — Tax attorney + CPA before you claim
3. KNOW THE TAXES — ~37% federal + state = plan for it
4. PICK YOUR PAYOUT — Lump sum (control) vs. Annuity (discipline)
5. PAUSE BIG SPENDING — 90-day minimum "cooling off" period
6. CLEAR YOUR DEBT — High-interest debt only, not others’
7. PRESERVE FIRST — "Tax strategy first, lifestyle later" — Jeffery Degner

FAQ: Your Burning Questions Answered

Can I really stay anonymous if I win?

It depends on your state. Some states (like Delaware, Kansas, Maryland) allow full anonymity. Others (like California, New York) require public disclosure. Check your state lottery website or ask your attorney.

What happens if I lose the winning ticket?

Sign the back immediately! A signed ticket is a "bearer instrument" — whoever holds it can claim. If unsigned and lost, anyone who finds it could claim. Store it like it’s made of gold (because it is).

Should I take the lump sum or annuity?

No universal "right" answer. Lump sum = control + investment potential. Annuity = forced savings + inflation protection. Degner says returns are "fairly close." Your financial team should model both for your specific situation.

How long do I have to claim the prize?

Typically 90 days to 1 year, depending on the state. Don’t wait — but don’t rush in without your team ready.

What’s the single biggest mistake winners make?

Spending too fast without a plan. Whether it’s mansions, "helping" everyone, or bad investments — the money vanishes shockingly quickly. The 90-day pause is your best defense.

FINAL THOUGHT
Winning the lottery isn’t a financial plan — it’s a financial event. What happens next depends entirely on the decisions you make in the first 90 days. Be the winner who keeps the money, not the one who becomes a cautionary tale.

Good luck — and if you win, remember: shhh, hire pros, think long-term!