How To Manage A Major Financial Windfall
How To Manage A Major Financial Windfall
Danielle Antosz Updated Mon, September 9, 2024 Moneywise
Virginia dad gives son $1M winning lottery ticket as wedding gift — how to manage a major financial windfall
Most newlyweds expect stand mixers, silverware, or new sheets as traditional wedding gifts. But for bride-and-groom Kiana and Aaron Andrews of Prince William County, Virginia, they received something a lot more valuable.
Just before their April wedding, Aaron's father, a frequent lottery player, purchased a ticket for the Virginia Lottery's Cash4Life draw — and won. He had the choice of either $1,000 every week for the rest of his life, or a $1 million lump sum payout.
But rather than cashing out the ticket, Aaron’s father decided to give the winning ticket to his son as a wedding gift. His dad jokingly told Fox 5, "This was the best way to get him out of my basement."
Prior to receiving the ticket, Aaron and Kiana had decided to move in with Aaron’s father to help them save money. But now, with the help of a financial adviser, they've decided to take the lump-sum payment of $1 million, which allows them to help out Aaron's grandmother, set up college funds for their future children, and, one day, buy a home.
"I have a great father who has done nothing but look out for me!" Aaron told Virginia Lottery officials as he redeemed the ticket.
Lump Sum Vs. Weekly Annuity Payments
After speaking with a financial adviser, Aaron and Kiana decided to accept the $1 million lump sum cash payout rather than receive $1,000 every week for the rest of their lives. There are several benefits of taking the lump sum.
The $1,000-a-week payment only lasts as long as Aaron is alive. If he happens to die at a young age, for example, the payouts would cease and couldn’t be passed on to his heirs. However, taking the cash payout means he has access to the funds now.
It’s also worth considering that, while $1,000 a week sounds like a lot, the value of that money will change over time due to inflation.
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