1 week Ago By Jacob Willeford
A LUCKY newlywed has increased his fortune exponentially thanks to a lottery win. Except, the lottery ticket was not purchased by the groom or the bride. Virginia resident Aaron Andrews tied the not with his wife Kiana in April, and was shocked to receive a once-in-a-lifetime wedding gift.
It came from Aaron's dad in the form of a winning $1 million lottery ticket, per the Virginia Lottery . Aaron and Kiana told officials that they had decided, after they got married, that it was best to move into Aaron's dad's house for a short while to save money . The pair had been living in the basement of the home for a few months, and Aaron's dad continued to buy lottery tickets consistently as he had done for years.
Read More on the Lottery He would later purchase a Cash4Life ticket at a PJ's Neighborhood Variety Store for the August 3, 2024 drawing. When the drawing results came in, Aaron's dad found that he'd matched all five white balls of 25-35-36-41-59, missing the Cash Ball of 2 narrowly. That meant he'd landed a $1,000 every week for life or a $1 million one-time payday.
Selflessly, Aaron's dad decided it was better that his son take the money to relieve some of his financial burdens with Kiana. Most read in Money PARENTAL ACTION "This was the best way to get him out of my basement," the dad joked while speaking with Virginia Lottery officials. Aaron expressed his unwavering gratitude for his father when he recently visited the Virginia Lottery headquarters in Richmond.
"I have a great father who has done nothing but look out for me!" he exclaimed. After consulting a financial advisor, Aaron elected the lump sum distribution of $1 million instead of the $1,000 every week for life. Of course, the $1 million was significantly less due to Aaron's decision to take all the cash from the prize up front.
The federal and state governments impose a significant tax on lottery winnings over $5,000. Players who win big on lottery tickets typically have a choice to make: lump sum or annuity? The two payout methods can impact how much money you get from your prize. Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once. Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you'll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option. Experts have varying opinions on whether to take the lump sum or take the annuity .
TAXING TIME For the federal, it's always a 24% deduction. States choose their own rate, and some have none, but Virginia's is 4%. That means about $280,000 was instantly taken from Aaron's winnings, leaving him a total of around $720,000.
Still, that's a considerable sum, and one he told lottery officials would go towards buying a house, helping their grandmother, and creating a college fund for their kids. Other lottery players have also found themselves in unique winning situations. Read More on The US Sun A North Carolina player recently landed a prize of over $400,000 one day after buying a new house and then paid it off completely.
Siblings in Massachusetts who used an identical strategy also won $25,000 a year for life together..
