This should be invested wisely with professional help for the twenty years it takes to reach the retirement age of sixty-five. Danielson urges them not to quit work unless they're prepared to accept a very modest lifestyle. Beyond the loss of pay, quitting work can have dire consequences, including reduction of eligibility for Social Security or Medicare benefits, loss of employee retirement funds, and loss of health insurance benefits. Instead, winners should consider pursuing the career they've always wanted or becoming self-employed. However, the Valley teems with green in the form of jackpots, prizes, giveaways, tournaments, and drawings with prizes running from several thousand to several hundred thousand dollars.
Financial advisers feel it makes little difference.
Because the 1099 form that goes to the IRS lists the full retail value of equivalent merchandise, taking the cash may allow a winner to negotiate a lower price for that merchandise on the street and have some money left over to pay the income tax. Another early decision is how to take the money. By law, casinos must offer the choices of cash, check, or wire transfer. The last of these may be the safest option, although not necessarily the most emotionally satisfying. The next agenda item is taking care of Uncle Sam.