The lucky winner, Deivson Alves Martins, faced a tough decision when he won a million dollars playing the lottery in Massachusetts. Opting for the full lump sum payment, he had to pay federal and state taxes, reducing his prize to $650,000. Although still a significant amount, it serves as a reminder for future lottery winners to carefully consider whether to receive their money in annual payments or as a lump sum.
Financial expert Michael Liersch suggests that winners of large sums of money should consider taking their prize in annual payments, as it may lead to better long-term financial decisions and tax benefits. While the immediate gratification of a lump sum payout may be tempting, it is important to weigh the pros and cons before making a decision.
Deivson’s story serves as a cautionary tale for future lottery winners, reminding them to carefully consider their options and seek financial advice before making a choice that could impact their financial future. In the end, it’s not just about winning the lottery, but about making smart choices with the prize money to secure a more stable future.