A MAN experiencing homelessness landed a lottery jackpot this month that could pave the way for financial security.
He purchased the ticket recently at a local liquor store where he’d been a longtime customer.
A man experiencing homelessness has won $1 million (stock image)Getty Images - Getty GettyThe cash came from a scratch-off game earlier in April (stock image)[/caption]At least, that’s what Wilson Samaan, manager at Sandy’s Deli-Liquor in San Luis Obispo, California, told NBC affiliate KSBY.
“That’s the winning ticket up there, he match[ed] one number and the price was $1 million,” Samaan told the outlet.
Samaan explained that it’s the first time a large lottery prize had ever been won at the store, and recalled the man scratching off the ticket right in front of him.
Initially, he couldn’t believe it was real and asked the manager for verification.
He’d thought it was only a $100,000 win, but Samaan quickly confirmed that it was the $1 million jackpot.
“I’m like, ‘No, bro. That’s $1 million. Congrats, brother,’ so we gave each other a high five,” Samaan noted.
The manager also went above and beyond to help the longtime customer, offering to drive him to a California State Lottery office instead of having him mail in the ticket along with the claim form.
“I drove him to Fresno, I think the next day, or Wednesday, because he’s like ‘Do I want to send it in the mail?’ And I told him, ‘That’s a million-dollar ticket. No, I will drive you,” Samaan said.
ASSESS AND VERIFY
Still, it’ll be a while before the winner sees the money.
The California State Lottery has a “thorough vetting process,” per what spokesperson Carolyn Becker told KSBY.
That process can take anywhere from a couple of weeks to a few months, along with an interview with the winner.
The background check and interview serve as a way to see if a winner owes any money to the state and verify they’re the true ticket holder.
“As you can imagine, we give away a lot of prize money at the CA Lottery, and we are happy to do it, but we want to make sure we are giving it to the right person,” Becker said.
“We process over 10,000 winning claims a month, so that’s part of why it takes a little bit of time.”
Lottery winnings: lump sum or annuity?
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.
The man declined to be named while speaking with the news outlet but noted that it was a “life-changing” sum.
He also detailed intentions of putting down a payment on a house, purchasing a car, and saving and investing the remainder.
EXPERT’S ADVICE
This is a sensible route, and some lottery experts have told The U.S. Sun that a crucial first step the man should take, and likely has already taken, involves sitting down with a lawyer and financial planner.
“Winners typically want to have a plan for the money prior to claiming,” Akshay Khanna, CEO of Jackpot.com, said.
“Oftentimes, they will create trusts or other legal entities to handle the money for tax or anonymity purposes.”
Unfortunately for the man, he will have to have his identity revealed at some point during the process, as per California state law.
Depending on whether or not he takes a one-time lump-sum or annuity payments, he could also see about half the cash vanish instantly for taxes.
Unclaimed lottery tickets worth considerable amounts remain in some states this month.
Officials are still searching for a $344 million Mega Millions jackpot winner, for example.
A three-step warning was also issued for a $50,000 ticket sold at a gas station in Indiana.
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