Did you win the lottery? Did you win a lawsuit settlement? Good for you!
Now wait to get paid.
Winning the lottery is everyone’s dream but in reality, it’s not as magical as it may seem. Not only does the United States government — federal, state, and local — take up to 25% of your winnings, many lotteries pay winners in increments. The Mega Millions lottery, for example, is paid in 30 increments: one immediate payment and 29 annual payments thereafter. Each payment is 5% larger than the one before it. Because of the elongated nature of lottery payouts, many lottery winners (48% to be exact) still have to work after winning the lottery.
People who win lawsuit settlements, whether it is for medical malpractice, employer damages, government suits, and others, don’t fare muc