I won $1 million from a scratch-off but I immediately lost nearly half my money when I went to claim my prize
A LOTTERY player made a life-changing purchase after buying a scratch-off ticket worth $1 million.
Michael O'Brien from Watervliet, 15 minutes north of Albany, New York, claimed a major lottery prize for a Holiday Treasure scratch-off game.
He bought his ticket for $10 at Stewart’s Shops, a local store, in Watervliet.
The game includes 5X and 10X symbols to indicate if a prize is multiplied.
O'Brien's lucky ticket won him a whopping $1 million.
Yet he didn't get to keep the full prize thanks to his choice.
Read more on the US Lottery
LUMP SUM
The ticket holder claimed his winnings as a one-time lump sum payment of $475,230 after required tax deductions.
His other option would've been receiving the prize through annuity, or a fixed money sum paid annually until the amount is fully paid off.
O'Brien's choice meant he forfeited $524,770, more than half his original prize.
Winners opt for the lump sum option when they'd rather get a large sum of money upfront.
Players may also pick annual installments instead of a lump sum, where payments are distributed monthly.
LOTTO LOSS
O'Brien isn't the only scratch-off player who missed out on taking home his full prize.
A Washington lottery player lost $2 million after winning $4 million on a new scratch-off game.
Durwood Dixon Jr. bought a Black Titanium ticket for $30.
He got it at a Mom's Grill store and had to pick between the two choices at lottery headquarters.
Lottery prizes: Lump sum vs Annuity
Lottery winners throughout the US must make a tough decision about how they want to claim their prizes.
What is a lump sum payment?
- Lottery winners can accept a one-time cash payout.
- Although a winner would lose a chunk of their payout to taxes, they would likely lose more over time with annual payouts.
What are annual payments?
- Installments are paid out as one immediate payment followed by a series of annual payments.
- This guarantees money to come in for years or even decades, but some winners worry tax rates may increase over time.
"To invest better you need to not only choose a good, low-cost, diversified portfolio," said Charles Weeks, the founding partner of Barrister, via USA Today.
"You will also need to make sure you control your emotions in good markets and bad."
While the annuity option would pay him over two decades, Dixon opted for a lump sum of $2.4 million or $1.719,009 after taxes.
Jared James, a lottery expert and algorithm producer, previously told The U.S. Sun key moves for winners to make.
POWER PRIZE
Powerball players should check their old tickets if they played the lottery last November.
A ticket worth $2 million remains unclaimed and was purchased at a liquor store in Iowa.
The draw date was on November 25, 2023, and the ticket will expire on May 23.
In this case, the winner matched five white balls with the numbers 27, 33, 63, 66, and 68 while missing 9 for the Powerball.
The U.S. Sun covers more stories on Mega Millions and the biggest lottery winners.
Read More on The US Sun
One lottery player who had a tarot reading predicting fortune won $500,000 hours later.
Meanwhile, another player bought Powerball tickets on their lunch break and returned to work as a millionaire.