Mega Millions jackpot is up to $1.1 billion—what billionaire Mark Cuban says you should do if you win

Original Article:

Source: Link

For the sixth time in Mega Millions lottery history, the jackpot prize is worth over $1 billion ahead of Tuesday night's 11 p.m. ET draw. If you match all six numbers on your ticket, you'll have the choice between $1.1 billion paid out as an annuity over 30 years or taking home a lump sum payment of $525.8 million, per usamega.com. Most winners choose the lump sum option, even though it's less than half of the total jackpot amount. That way, they get the most money possible right after winning, rather than receiving annual payments. In this case, those payments would be roughly $23 million a year after federal taxes are deducted. With the lump sum payout, winners are theoretically able to invest and start growing the funds right away. However, Mark Cuban, self-made billionaire and star of ABC's "Shark Tank," thinks winners should take the annuity instead. Here's why.