Ohio Woman Wins $15M Lottery But Only Receives $5.4 Million - Are Cash Payouts Worth It?

Jeanne, a resident of Sandusky, Ohio, recently won $15 million through an Ohio Lottery 50th Anniversary scratch-off ticket. However, she ultimately took home only $5.4 million after taxes and her chosen payout option. Jeanne had a choice between receiving $600,000 annually for 25 years, totalling $15 million, or opting for an immediate cash payout of $7.5 million. She chose the latter, and after accounting for 28% in state and federal taxes, her winnings were reduced to $5.4 million. Reflecting on her win, Jeanne told WHIO staff, "I was speechless. What I kept thinking is I'm just going to wake up. It's not real." Earlier this year, she also won the grand prize for the Ohio Lottery's Fun Turns 50 Second Chance Promotion in February, receiving $3,500 and an invitation to an exclusive celebratory event at Cleveland's Rock & Roll Hall of Fame in September.

Jeanne plans to use her winnings to pay off her closest friend's mortgage, with whom she has been staying for the last few years, and to purchase a home in Florida. However, managing newfound wealth can be challenging. Derek Sall, founder of Life And My Finances, noted, "Lottery winners who are not wealthy don't inherently know how to keep it. It's like taking a person off the manufacturing floor, putting them in the CEO spot, and telling them to run the company. They just don't have the proper training to do it." Similarly, Robert R. Johnson, a finance professor at Heider College of Business, Creighton University, believes lottery winners often overestimate their winnings. He remarked, "One could win a $5 million lottery award and have about half of that after taxes, depending on one's state of residence."

Many winners invest in assets they believe will yield returns, such as cryptocurrencies or video-game startups, but these decisions rarely succeed without professional advice. Poor financial management can lead to reckless spending, as Morris Armstrong, founder of Morris Armstrong EA, explains. "Losers impulsively buy houses, cars, vacations, and other possessions in excess. The reality is, how many cars or houses do you need? Losers tend to forget that." Helping close friends and family after winning the lottery, as Jeanne plans to do, is common. However, there have been cases where providing financial support strained relationships. Many friends, relatives, and acquaintances who have been out of touch may also come forward asking for their fair share upon learning about lottery winnings. Saying "no" to such requests can be emotionally and financially draining, leading to undesirable conflicts.

To avoid losing her wealth, Jeanne should consider hiring a fiduciary financial advisor who understands her life goals and risk appetite. Such advisors are legally obligated to work in their client's best interests, guiding investment decisions, assisting with taxes, and creating budgets to prevent overspending. Winning millions can significantly upgrade one's living standards, making it tempting to indulge in luxury purchases. Sticking to a budget where discretionary expenses are moderated can help control spending. Additionally, learning to set boundaries and say "no" when necessary can save relationships and preserve wealth. Winners can also consult an attorney about cashing out privately, as many states require winners' names to be made public. Evaluating Jeanne's decision to opt for the cash payout reveals that while the immediate financial relief can be appealing, consulting a financial advisor can help one understand the best payout method for long-term financial health.

Don Vultaggio, co-founder and CEO of the company that produces Arizona Iced Tea, has maintained the price of their iconic product at 99 cents a can since its launch 32 years ago. Inspired by Snapple's success, Vultaggio founded the Arizona drinks company in New York in 1992, and their large cans of iced tea quickly became popular. Despite rising grocery prices and industry trends like "shrinkflation," Arizona Tea has kept its 23-ounce cans at the original price. In a recent interview, Vultaggio explained their strategy involves efficient production and distribution, and emphasised their commitment to keeping prices affordable as a way to give back to consumers. He assured that there are no plans for a price increase in the near future, stating, "We're going to fight as hard as we can for consumers because consumers are my friend."

Arizona Iced Tea also has an intriguing origin story. Vultaggio wanted a name that conveyed warmth and a healthy environment, moving away from his Brooklyn roots. Initially considering "Santa Fe" inspired by his home's nickname, he ultimately chose "Arizona" despite never having visited the state. Vultaggio associated Arizona with a clean, refreshing feel, ideal for an iced tea brand. Leveraging his previous success with malt liquor, he decided to package the iced tea in the same 23-ounce can size, distinguishing it from competitors like Snapple. This distinctive packaging and the enduring 99-cent price point have been crucial to Arizona Iced Tea's success and brand identity.

Lauriel Arkeah, exhausted by the relentless 9-5 grind and her upbringing surrounded by poverty and violence, decided to make a change during the height of the COVID-19 pandemic in 2020. Fast forward four years, Lauriel has transformed her life by becoming a virtual assistant, a role that involves performing administrative tasks for organisations or clients remotely. This change has provided her with the flexibility to work from home or while travelling, the freedom to choose her clients, and a consistent monthly income of around $10,000. Lauriel is among a growing number of burnt-out workers who have left traditional jobs for the burgeoning field of virtual assistance.

The role of a virtual assistant is gaining popularity as technology advances, with the global market for virtual assistant services valued at $4.12 billion in 2020 and expected to grow significantly. The increasing demand for virtual assistants is driven not only by technological advancements but also by economic development in new markets and the rise of remote work. By 2028, the number of virtual assistants worldwide is projected to reach 8.4 million. Lauriel's success story highlights the growing appeal of this profession, where establishing a strong network, gaining relevant skills, and obtaining necessary certifications can lead to substantial financial and professional rewards.

An Arizona woman named Diane recently criticised Tesla for failing to adequately inform drivers about essential safety protocols after she became trapped inside her Tesla Model Y. Diane, who had owned the car for three years without prior issues, recounted how she was unable to open the doors or windows after the vehicle unexpectedly powered down. Frustrated and scared, she sought help from the Tesla manual but was unable to access it due to the car's power outage, eventually learning about a "hidden latch" inside the door from Tesla representatives.

Diane's experience is not unique; other Tesla owners have reported similar incidents. Last month, Brianna Janel shared on TikTok how she was trapped in her Tesla for 40 minutes while updating the software, with temperatures reaching 39 degrees Celsius. Additionally, a toddler was trapped in a disabled Tesla, highlighting the broader safety concerns associated with Tesla vehicles. These incidents have sparked calls for Tesla to improve owner education regarding safety features, particularly in situations where the vehicle loses power. Moreover, recent accidents involving Tesla vehicles, including a tragic collision that led to a car submerging in a pond and an injury from inspecting a Cybertruck, have intensified scrutiny over Tesla's safety measures and the reliance on digital interfaces.

YouTube influencer and entrepreneur Jake Paul has entered the men's skincare market with the launch of "W". The initial product line, which includes a body wash, body spray, and antiperspirant deodorant, is priced under $10. Paul identified an opportunity to disrupt the outdated men's grooming market with better products and a fresh vision. "W," standing for "winning," plans to expand its range soon with additional products like shampoo, conditioner, face wash, and hair gel. The men's grooming market has seen significant growth recently, valued at $28 billion globally from 2018 to 2023, with projections suggesting it could exceed $100 billion in the next four years.

Paul joins other celebrities, such as Dwayne "The Rock" Johnson, John Legend, Idris Elba, and Pharrell Williams, who have launched skincare lines, tapping into the growing men's beauty market. He aims to emulate the success of his brother Logan Paul's sports drink, Prime, which achieved over $1.2 billion in sales last year. Paul's marketing strategy includes leveraging his visibility and high-profile sponsorships, similar to Prime's partnerships with major sports teams. Despite a postponed fight with Mike Tyson, Paul is set to face mixed martial artist Mike Perry in an eight-round cruiserweight bout, viewing it as a perfect prelude to his eventual match with Tyson. Perry, a prominent figure in Bare Knuckle Fighting Championship and former UFC fighter, brings a formidable challenge to Paul's boxing journey.