Going to win $1.2B Powerball prize? Consider not taking cash
MIAMI -- Think you're a sure bet for Wednesday night's estimated $1.2 billion Powerball jackpot?
If so, you need to decide whether to take cash, which would actually pay out $596.7 million, or choose the $1.2 billion annuity option that is twice as large but is paid out over 29 years.
Winners of giant jackpots nearly always take the cash, and financial advisors say that might be a mistake.
Nicholas Bunio, a certified financial planner from Downingtown, Pennsylvania, said that even with his expertise, he would take an annuity because it would so dramatically lessen his risk of making poor investment decisions.
"It allows you to make a mistake here and there," Bunio said. "People don't understand there is a potential for loss. They only focus on the potential for gain."
Of course, it's good to keep in mind that your chance of winning the jackpot is incredibly small, at 1 in 292.2 million. That's why no one has won Powerball's top prize since Aug. 3 — resulting in 38 consecutive draws without a jackpot winner.
All that losing has let the Powerball jackpot grow to be the fourth-largest in U.S. history. If no one wins Wednesday night, the jackpot could become the largest ever.
Powerball is played in Florida and 44 other states, as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.
Powerball jackpots have been won five times so far this year.
Tickets cost $2, and drawings are each Monday, Wednesday, and Saturday.
You can watch the drawing live during CBS4 News at 11 or on CBSMiami.com.
CBS4 is your official Florida Lottery station.
