NOW PLAYING
(NEXSTAR) – For the eighth time in Powerball history, the jackpot has hit an estimated value of $1 billion.
Yet another drawing produced no jackpot-winning tickets on Monday. Only three tickets – one each in California, Maryland and Tennessee – were able to match five of the drawn numbers, which were 6, 37, 54, 55, 64 and red Powerball 10.
Early Tuesday, Powerball officials estimated ticket sales had bolstered the jackpot to an estimated $975 million with a cash value of $422.3 million.
After further review, game officials have since increased the jackpot to an estimated $1 billion with a cash value of $433.1 million. At this size, the jackpot remains the eighth-largest prize in Powerball history, though it is on the verge of climbing into the No. 7 spot:
- $2.04 billion: Nov. 7, 2022; California
- $1.817 billion: Dec. 24, 2025; Arkansas
- $1.787 billion: Sept. 6, 2025; Missouri and Texas
- $1.765 billion: Oct. 11, 2023; California
- $1.586 billion: Jan. 13, 2016; California, Florida, Tennessee
- $1.326 billion: April 6, 2024; Oregon
- $1.08 billion: July 19, 2023; California
- Est. $1 billion: Current
- $842.4 million: Jan. 1, 2024; Michigan
- $768.4 million: March 27, 2019; Wisconsin
It’s also the 15th-largest jackpot across both Powerball and Mega Millions, edging out the $980 million Mega Millions prize won by a ticket sold in Georgia last fall. It’s only $50 million shy of tying a Mega Millions prize won in Michigan in 2021 for the 14th-largest across both games.
We haven’t seen a Powerball jackpot of this size since December when a ticket sold in Arkansas won a $1.817 billion payout. The grand prize won before that was worth $1.787 billion and split by tickets sold in Missouri and Texas.
Regardless of how large the Powerball jackpot becomes, a winner will walk home with far less. After taxes, a winner’s payout would be, at best, about $631.3 million with the annuity option, according to an analysis by USA Mega. The cash prize would be diminished to about $272.9 million. In states with local lottery taxes, the prize amounts would be much lower.
NOW PLAYING
Still, hundreds of millions of dollars is likely more income than you could ever expect to receive.
If you do overcome the 1 in 292.2 million odds and win big Wednesday night, there are a number of steps experts suggest taking, such as building your legal and financial team and keeping the ticket secure.
Then you will want to decide whether to take the annuitized or cash payouts.
Annuity vs. cash options
The annuitized option – with an estimated value of $1 billion, at present – will give you a one-time payment, followed by 29 annual payments that increase by 5% each time until they reach the amount you won.
The cash option, meanwhile, signifies the amount of money game officials have determined is needed to fund the annuity option. That’s the physical cash on hand that has accumulated during the current jackpot run – estimated at $433.1 million right now.
If you want your winnings right away, you will want to select the cash option, but if you want more money in the end, you may prefer the annuity option.
So how do you know what’s best for you?
“Most people take the lump sum because they want the money, they want to control it,” Robert Pagliarini, president and chief financial advisor for Pacifica Wealth Advisors and author of “The Sudden Wealth Solution,” previously told Nexstar. “I honestly think most people are probably better off taking the annuity.”
As mentioned, the annuity option means you’ll receive a check every year with another, slightly larger portion of your lottery winnings. While that annual allowance may sound annoying to a newfound jackpot winner, it can also help protect you.
It’s the only option available to a player in the United Kingdom, should they win. Officials across the pond say the decision to pay a jackpot winner over 30 years “provides a steady, reliable income over many years, helping to support long-term financial security.”
For example, let’s say you mess up with your winnings one year. Maybe you spend it unwisely, make some poor purchases, or gift too much away. If you had selected the cash option, “there’s no do-over, there’s no reset,” Pagliarini explained.
“But with the annuity, you get to redeem yourself every single year,” he added. “It might take a few years, it might take five or six years, but eventually you’ll figure it out.”
Jeremy Keil, a financial adviser from Wisconsin, previously told the Associated Press that “there’s no bad choice” when it comes to the payout you select. Keil said Powerball’s annuity assumes a 4.3% investment gain of the jackpot’s cash prize.
“If you think you can beat the 4.3%, you should take the cash,” Keil said. “If you don’t, take the annuity.”
Matt Chancey, an investment adviser in Tampa, Florida, also urged winners to understand that if advisers earn a percentage from the investment of all that money, they have a financial stake in how the money is paid out and should be clear about any potential conflict. He said talented investors could probably make more money than a winner could be paid through an annuity, but there is risk and advisers need to be open about their potential gain depending on the jackpot winners’ choices.
Regardless of what option you pick, if you win the jackpot, Pagliarini recommends making “[your payout] decision as fast as you possibly can, in a way where you feel very comfortable about the decision.”
The next Powerball drawing is set for 10:59 p.m. ET on Wednesday. Powerball is played in 45 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. Tickets sold in the U.S. and its territories are $2 each.
Add as preferred source on Google TagsCopyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Comments: Link copiedMore Personal Finance News
See All
Personal Finance Senate passes bill that could change nickels and how you pay with cash by Addy Bink 7 hours ago Personal Finance / 7 hours ago 
