How Do You Make the Most of a Powerball Jackpot?

How Do You Make the Most of a Powerball Jackpot?

You would struggle to find someone who hasn’t already thought about what they would do if they won the Powerball jackpot. The list of things that people would buy is as long as it is extravagant – from supercars and yachts to mansions and round-the-world trips. There are many ways to treat a multi-million dollar windfall, but which ways would be the best for you and your potential riches?


In 2018, Powerball jackpot winners won an average of $308 million, based on the advertised jackpot amount. Let’s assume you just matched all five main numbers and the Powerball to win this nine-figure sum. What next?

First Things First - Annuity Or Lump Sum

Before you even begin to consider what you could afford with your newfound riches, there are some important points to take care of. Firstly, how would you want your jackpot paid out?

You can choose to receive your Powerball jackpot one of two ways: as an annuity, which is paid out in instalments over 30 years, or as a lump sum. Many experts suggest that the best course of action is to take the lump sum; though it is much lower than the jackpot advertised, it represents an excellent opportunity to grow your wealth beyond what the annuity originally offered. 

Before you get too excited, there’s one more thing to take into account: taxes. A Powerball jackpot of $308 million, received as a lump sum and taxed accordingly, would be worth at most $122 million when it reached your bank account. But acting shrewdly could increase your jackpot’s worth in no time. How best to treat your winnings?

Save your Powerball Jackpot

The simplest and most fool-proof way to protect your Powerball jackpot is to save it. A run-of-the-mill high street bank account won’t do, though. Instead, private high-interest savings accounts exist for the purpose of protecting and growing large sums of money, accessible only to the ultra-wealthy. Bank accounts such as these often come with hefty fees, but the return through interest is often more than enough to offset the cost.

If you were to put all of your Powerball winnings into a bank account with an interest rate of 5%, for example, you would be earning over $6 million a year just for leaving your jackpot alone. You could easily live off the interest, while leaving your principal winnings alone!

Invest Your Winnings

If retaining your jackpot isn’t quite enough when it comes to managing your money, you might want to take an extra step into the world of investments. Investing is not for the faint of heart, as it can often involve risking your hard-won money on assets that might decrease in value. If you know what you’re doing or employ the right people, however, you can reliably increase your winnings and ensure your wealth is protected for generations to come.

A common investment amongst lottery winners is property. By purchasing houses or commercial property, you can either ensure a steady income through letting them out, or generate a profit from developing and re-selling them. A high-risk option would be to entrust your money to a hedge fund manager, where a complex portfolio of stocks, share and assets could greatly increase your returns.

Spend It All

This might all sound like hard work, and you’d be right. Maintaining and growing a nine-figure jackpot sum is harder than it might initially seem – and if you have no real desire to save that jackpot for the future, it might be completely unnecessary for you. In which case, why not spend it all? After all, you can’t take it with you…

With a Powerball jackpot of $122 million after tax, you could spend $1 million per month for over a decade. If you do the bare minimum and deposit your money in a high-interest private bank account, you could spend just as heavily for 25 years. You might struggle to spend so much each month, though – buying a Lamborghini a week could get a little boring…

These are just a few ideas for how to manage a nine-figure Powerball jackpot windfall. The possibilities are endless, and it is advised you speak to a financial specialist before making any major financial decisions. For more information on the process for winning a jackpot, check out our guide to what happens when you win Powerball.



Page Last Updated: 08/07/2019 15:33:43