Generally it is value paying somebody to deal with numerous duties and chores

Hiring a lawn care company saves time and energy for relatively low monthly costs.

davidf | E + | Getty Images

During our working years, saving for the future is crucial to one day gaining financial independence.

At the same time, we are working on other financial goals, such as paying for our children’s schooling or paying off the mortgage. However, for people with solid careers who hit their savings goals every year, it often makes sense to spend extra money on services that will make a positive difference in their lives.

My parents were both teachers, so I understand when it pays to be frugal. However, if you can afford to hire someone for these services, it is worth paying for some rather than doing them yourself.

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Yes it will cost some money. But there are other rewards, ranging from better health to a return on your investment and more time to enjoy life. Here are five services worth considering:

1. Hire a lawn maintenance company. I have customers in their 50s who work full time and still mow their own lawn – with a push mower. It’s a great exercise, but the heat and humidity in summer can drain your energy and possibly even worse results like heat stroke.

I’ve encouraged these clients to hire a regular landscape maintenance service, which can often cost $ 200 or more a month. The service staff mow the garden, cut the hedges, remove leaves and debris, and do other jobs in a fraction of the time it takes my customers to do these tasks. These expenses are so minor that they are unlikely to see any impact on your monthly budget. However, you will notice the time savings.

2. Work with a travel agent for vacation planning. Instead of searching the internet for hours, a good one Travel agency is experienced in finding the best deals and value for money for almost any travel destination. Her expertise includes researching and suggesting places to reach your destinations for these experiences, as well as arranging flights, accommodation, airport transfers and excursions while on vacation. A private chef or personal concierge can also be part of your recommended vacation plan.

I realize that some people are reluctant to work with a travel agent. You may ask, why the additional cost? But because of their knowledge and expertise, a good broker can help keep total costs down and possibly even save you money. And unlike the Internet, a travel agency is often available to help you with problems during your trip, especially when you are traveling abroad.

3. Grocery collection, delivery and ready meals. Since the pandemic, many retailers have been much more focused on helping customers who don’t like shopping in person. While grocery chains charge a fee for roadside pickup or delivery, it’s a small amount for convenience.

There are also several online companies that deliver ready-made meals to your home. These meals contain fresh ingredients that are ready to cook. For people who don’t like to cook every night, this alternative offers healthy eating at a reasonable price. Grocery deliveries are also an advantage when on vacation.

4. Hire a business coach. This may not be a necessary investment for a seasoned executive who has built a stable career. Still, some of my successful executive clients have hired a coach, and so have I. I refer to him as my “business therapist”.

A good coach can create clarity about career opportunities, overcome hurdles, achieve personal and professional goals and help reduce stress. For example, my coach helped me set up a 10-year plan for public speaking and writing and publishing books. So far I’ve published two books and a third will come out later this year.

Coaches can charge a few hundred dollars an hour or a flat fee for a series of coaching sessions. Hiring a coach is usually more effective when it becomes a long-term, regular relationship.

5. Tax preparation and planning. As a financial planner, I understand how taxes work and advise my clients on tax strategies. But for more than 10 years I have been using an auditor to prepare my taxes.

I just don’t want to spend many hours over several days collecting tax records, researching expenses, making sure I’ve researched every nuanced tax law that may benefit me and other tedious tasks. It’s worth the money to pay an accountant, especially one that I know can do the job.

And while the payment to an accountant can be anywhere from $ 1,000 to $ 5,000 per year depending on the complexity of your situation, part of the accountant’s job is to save money by advising you on tax cut strategies or asking for the right tax-related information .

A recently retired customer made the mistake of paying her own taxes. She made more than $ 1.5 million in her last year at work and decided to take care of her own taxes over time. After several frustrating days of trying to learn what to do – fearing she might make a mistake that could cost several thousand dollars – she crawled back to her CPA.

If there is a task that you do not want to do yourself, most likely there is a service that will take care of it. For example, I am so reluctant to buy a new car that I put it off for five years. Finally, early last year, when my sport utility vehicle covered 250,000 miles, I decided it was time to buy it.

I could have used a car purchase service for this job. Fortunately, my husband jumped in and did anything a service would do. For several weeks he visited different car dealerships to test cars.

Then he came home one Friday and said, “I found your car. They’ll keep it for you at the dealership.” I stopped what I was doing, went there to test the car, and bought it.

This is how you buy a new car now.

Of course, before you can consider spending money on additional services now, you need to meet your long-term savings goals first. The discussion of what additional services to add should be part of your financial plan and budget each year, as should your savings goals.

– By Lisa Brown, partner and investment advisor at Brightworth

Not everybody can deal with Joe Decide’s robust teaching fashion. And most of them aren’t Giants anymore.

It is not for everyone.

If the past year and two days of Joe Judge’s tenure as coach of the Giants have shown us anything, it is that his methods require a certain kind of player personality to be successful. Because of this, while fans have been thrilled with the additions to the roster to bolster the playmaking in recent months, the more important process to the Giants’ success could be weeding out those who are not fully invested in the plan.

Whether Golden Tate or Marc Colombo or this week Kelvin Benjamin who decided he’d had enough before the training camp’s first full workout began in earnest, Judge is on a mission to prune every branch that tries to grow other direction than his vision.

Because of this, almost everyone in the Giants workforce has ancestry that runs through either New England or Alabama – specifically, Bill Belichick or Nick Saban, the two major influences in Judge’s philosophy. Because of this, many of the players who have joined the team since Judge took office in January 2020 have similar roots and personalities.

Richter does not hide his methods.

“We’re not trying to make this an easy place,” said Richter. “We want to make sure that through training the players are applying as much pressure as possible so that when they get into the games they can deal with a level of adversity and pressure that will help them function better.”

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It’s a system that works as long as there are players who buy it. So far, the Giants have been able to keep more of these guys with them than those who can’t or won’t carry the judge’s flag for him. He has a dressing room with young executives in Daniel Jones, Evan Engram, Sterling Shepard, and Leonard Williams who not only seem to tolerate the judge’s rules, but thrive among them. This is one of the reasons he dated Kenny Golladay for almost three days before the Giants decided to invest in him as a free agent this off-season to make sure he was that kind of person.

“He’s a tough coach,” said second grader Xavier McKinney (of Alabama, it should be noted) on Thursday. “He asks a lot of us, but we take on the challenge every day. It can be pretty brutal at times, but it is what it is. It wasn’t before … We love the process of going through it. “

But there is a countdown to how long such a culture can last without a very important ingredient. For Judge’s Way to work in the long term, the Giants have to win.

It started a little late last year, but the clock is now ticking towards a time when victories have to become far more mundane than has been the case with this franchise over the past decade.

There is nothing wrong with going the hard way, but it must lead to more success than the easy way. Something has to change in the team.

It won’t be a judge.

“Look, I’ll always be me, I’ll do it with my personality,” he said. “I think you have to do this or you will only lie if you try to be something else.”

The judge said he spent time this off-season investigating how he interacts with players. He said he was trying to hear as many wise voices as possible, from sports psychologists to professional lacrosse and women’s basketball coaches to Navy SEALs, to get a better understanding of the best ways to reach this current group of Giants players .

“I don’t want to miss anyone,” he said. “One of the most important things we want to do is evaluate our team and make sure we don’t put someone on the road who can help us win, who we misjudge because we don’t see through a shadow of a personality can to see what someone can really do. “

Despite Benjamin’s grievances, which he voiced to the media by complaining that Judge confronted him for failing to come into the camp with the weight the team wanted him to take, cursing too much and being a “know it all”, The Judge he never interacted with actually has a pretty good track record of listening to and understanding the players. The coach who gets players to run penalties in practice is the same one who did a “favor” to rookie Derrick Dillon last year by removing him from the training roster so he could be at the birth of his child, the same coach Kadarius, who was last at the mini camp this month saw Kadarius Toney in the locker room crying over the news that a close relative was sick and put him on the first flight home to be with his family there.

Because of this, several players came to Judge’s defense because of Benjamin’s farewell shots.

“He has a right to his opinion,” said cornerback James Bradberry. “I definitely think Coach Judge is tough. We have a lot of pressure in our shoes so I don’t expect him to give us our will all the time. A tough coach, that’s how you build structure, that’s how you build.” Discipline. That’s what he’s building here. “

Regarding the salty language, Judge didn’t apologize – “It’s a little different when you’re out there, kind of a heat of the moment,” he said – but insisted that he and his staff never use those words about players themselves .

“It’s very intense,” Dexter Lawrence said of Judge. “He respects us, we respect him … I don’t know anyone who doesn’t like him.”

At least not on the list.

No longer.

Notes & Quotes: Saquon Barkley stays with PUP, but he might get closer to his teammates. The running back, recovering from a torn cruciate ligament, looked much more active and explosive on Thursday than on Wednesday. The Giants are taking Barkley slowly, but Thursday’s presentation may have given them some evidence that he’s almost ready for action. . . First-round pick Kadarious Toney has yet to participate in training camp exercises or reps despite being removed from the COVID-19 / reserve list earlier this week. “We’ll keep it going up over there [on the side with the trainers]”said Richter.” We’ll take him day in and day out, “was quickly followed by center Nick Gates, and then a trio of culprits – Daniel Jones, Alex Bachman and Brett Heggie – who toured together.

Tom Rock began reporting on sports for Newsday in 1996 and has been the Giants beat writer since 2008.

On The Cash: Breaking down Biden’s $1.8T American Households Plan | Powell voices confidence in Fed’s deal with on inflation | Wall Road basks in ‘Biden increase’

Have a nice Wednesday and welcome back to On The Money, where we prepare for something else shared session experience. I’m Sylvan Lane, and here’s your nightly guide to everything to do with your bills, bank account, and bottom line.

Do you see something that I missed? Let me know or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here:

Write to us with tips, suggestions and news:, and Follow us on Twitter: @SylvanLane, @ NJagoda and @NivElis.

THE BIG DEAL – This is what Biden’s $ 1.8 billion plan for American families says: President BidenJoe BidenTulane adds Hunter Biden as a guest speaker on media polarization Trump on the resumption of MAGA rallies: report Biden’s inevitable foreign policy crisis MORE On Wednesday, the American Families Plan will be unveiled, an ambitious package that includes $ 1 trillion in new spending and $ 800 billion in tax credits aimed at increasing access to preschool and community colleges, as well as childcare and Extend health care significantly.

  • Biden will explain the proposal in a speech to a joint congressional session where he is expected to set his agenda for the coming months.
  • The centerpiece of the speech will be the Family Plan, which will be rolled out less than a month after Biden unveils a $ 2.3 trillion infrastructure proposal.

But we already have details of what Biden will propose tonight.


  • The American Families Plan has a $ 200 billion program that provides universal pre-kindergarten for all three- and four-year-olds.
  • $ 109 billion for a tuition-free community college for any American who wants it.
  • $ 85 billion to increase Pell grants for low-income and minority students.
  • More than $ 4 billion in major scholarships, certification, and support programs for teachers.

Tax credits:

  • The plan would build on the provisions of the American Rescue Plan by indefinitely extending the Affordable Care Act tax credits and making the extension of the childless worker tax credit permanent.
  • It would make the child tax credit permanent fully available to the families with the lowest incomes, while other aspects of credit expansion, such as increasing the loan amount, will expand through 2025.

The proposal includes the creation of a national program for paid family and sick leave, more funding for catering programs for children and low-income families, and reform of unemployment insurance. The Hill’s Brett Samuels and Morgan Chalfant break it open here.

The tax increases: All of these new investments will be accompanied by a number of proposed high income tax hikes which, on their own, could be a major political boost.

The Naomi Jagoda of the Hill leads us through Biden’s tax plan here.

Read more about the American Families Plan:

  • President Biden will speak to Congress on Wednesday evening tense terms with the business community for proposals to increase the corporate tax rate and nearly double the capital gains tax for high-income Americans.
  • Key Democratic lawmakers said Wednesday they would keep pushing for that full expansion The Presidential Tax Credit (CTC) is set to be permanent after President Biden released a proposal that would only cement part of the expansion.
  • The Treasury Department on Wednesday announced more details on President Biden’s proposal to increase IRS funding Strengthen compliance According to tax laws, these initiatives would generate net sales of $ 700 billion over a decade.

Run the day

Powell is confident the Fed can get inflation under control: Federal Reserve Chairman Jerome Powell said Wednesday that rising inflation will offset itself as one-off, pandemic-related statistical quirks and supply chain disruptions subside.

During a press conference, Powell argued that the recent spike in the rate of price increases is almost entirely due to economic activity picking up after the collapse during the coronavirus recession outbreak.

“We’ll likely see some upward pressure on prices,” Powell said after the Fed announced that it would keep rates near zero percent and maintain the current rate of bond purchases in the reopening process. ”I Explain why here.

The background:

  • The US is expected to grow between 6 and 8 percent in 2021 as it contains the spread of COVID-19 and brings millions of people back to work.
  • Critics fear Biden’s recent $ 1.9 trillion in economic aid, plans for future spending, and loose monetary policy from the Fed will boost inflation as the US is already booming.
  • The consumer price index (CPI), a closely watched indicator of inflation, rose 2.6 percent between March 2020 and last month, and minus food and energy costs 1.7 percent.

However, Powell said Wednesday that summer inflation would continue to rise due to two short-term factors: The statistical effect of comparing a fall in demand with a sharp surge in demand and congestion caused by the reopening of the global economy.

“An episode of one-off price increases in the reopening of the economy is not the same as and is unlikely to result in sustained higher inflation year over year into the future,” he said.


  • The Senate Banking Committee will hold a hearing on “The Dignity of Work” at 10 a.m.
  • The Senate Finance Committee holds a social security hearing at 10 a.m. during the COVID-19 pandemic
  • A House Financial Services subcommittee will hold a hearing at 12:00 noon to close the racial and gender wealth gaps
  • A House Ways and Means subcommittee will hold a hearing on infrastructure investments at 1:30 p.m.



Yours, Mine … and Possibly Ours? Recommendation for {Couples} on Deal with Cash

What is the “right” way to manage finances with a partner or in a family? As financial advisors, we are constantly asked this question. The answer is that there isn’t just one right way to go – just the one that works best for your situation.

Before even considering what might be the best approach, it is first necessary to understand each other’s priorities and attitudes towards money. This is a great way to find out how similar, and most importantly, how different you are so that you can identify potential problems before they arise. Additionally, you may find that one approach works now, but you want to make a different arrangement in the future. For example, if both partners are working now, you can take one approach, but want to change the tacks if one parent leaves the workforce to focus on parenting in the future.

Before deciding whether to keep your finances separate or combine them, there are a few important factors to consider:

Run both credit scores

If one partner has bad credit, getting married doesn’t necessarily affect the other spouse’s credit. However, if you open a joint account together or apply for a loan (e.g. a mortgage), the credit scores of both partners can be taken into account. This can have an impact on the loan amount approved or the interest rate that is offered to you.

Check your individual credit scores and share them with each other so you have an idea of ​​where you are. If one spouse has poor credit due to bankruptcy or foreclosure, the couple may not be eligible for a joint loan at all – even if the other spouse has excellent credit.

Be aware of common debts

Understand whether you are sharing a credit card account, adding your spouse as an authorized user to your existing individual credit card account, or taking out a joint loan for a home or car. Each borrower is equally responsible for paying back the debt. The total amount borrowed and payment history are reported on both spouses’ credit reports and scores. In jointly owned states (Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, Wisconsin, and optionally Alaska), both spouses are equally responsible for all assets and debts acquired during the marriage – even if you do I don’t know that your spouse used up a large credit card balance during your marriage. You would still be on the hook to make sure it was paid for in full.

Form an equal and clear partnership

Be clear about your expectations. Perhaps this means you agree that any purchase over a certain dollar amount requires a joint decision before the money is spent. Perhaps this means holding a monthly The Business of Us meeting to review your budget, your progress towards achieving common financial goals, and discussions about who is responsible for handling which part of your financial responsibility.

No matter how uninterested either of you may be in managing your family finances, allowing only one partner to make all the money decisions is a bad idea. You both need to know how to handle your assets and debts so that the other partner can safely handle the finances if something happens to either of you.

Combine or not, choose your best strategy

There are many factors to consider when deciding how to handle finances. In general, however, there are four main methods:

  • Keep your finances separate. They do not have common accounts and bills are split according to an agreement. The key to the success of this approach is making sure you communicate regularly and directly about how you are going to split the bills. A split of 50/50 can work when both partners have similar incomes, but a split of 70/30 can be more useful when one partner is doing significantly more than the other. You can also choose to have the electricity bill and the cable bill roughly the same each month, so one of you pays the electricity bill in full and your partner takes care of the cable bill. In keeping the finances separate, you also need to decide how the payments will be made. Would you like to write a check / online invoice for your part at a time, or will one person pay the full amount and the other refund?
  • Joint finances. You combine all of your income into one common account and use it for all expenses, whether it’s larger bills like rent / mortgage or smaller things like groceries, entertainment and personal expenses like clothes and haircuts. This method makes it easier to understand your budget because you can both see where all of your money is going in and out. However, you want to make sure that you have established what you think is appropriate in order to avoid disagreements about money. In this scenario, having a pre-determined spending limit that requires discussion is helpful in avoiding arguments.
  • Set up an “allowance”. If either of you is not earning an income (e.g. a parent staying at home), the main breadwinner can transfer an agreed amount to the other’s account every week or month to cover household bills or personal expenses. With this approach, it’s important to make sure you are familiar with the idea – the allowance is not a gift or a favor, but an understanding that raising children or caring for an aging parent is also a chore, even if it is unpaid Work is about. You should regularly discuss whether the amount of the allowance is sufficient to cover the agreed costs.
  • Share some resources / expenses but keep others separate. Totally separate or completely divided, don’t you feel right about your situation? You can take a trade-off approach to “yours, mine, and ours” where you have one account to pay for shared expenses but keep your own individual accounts to meet your personal needs. This method makes it easy to budget combined expenses while maintaining independence and privacy. You should open an account for the payment of split bills, where each partner contributes a certain amount to these expenses, and the balance is transferred to your separate accounts. You can choose to split the amount needed to cover monthly shared expenses evenly or to create a contribution amount proportional to your income.

The final result

The decision how to deal with “The Business of Us” is a big decision – but not one that only has to be made in one direction or that cannot be handled differently at different times. The most effective way to manage your finances is the method that best suits your particular circumstances.

The “right” way to manage your finances with a partner or in a family is to discuss the facility with your financial advisor, who can advise you on what makes most sense for your personal situation and you on how to manage it Any stage can support financial transitions in your life.

CFA® and Chartered Financial Analyst® are registered trademarks of the CFA Institute.
Mercer Advisors Inc. is the parent company of Mercer Global Advisors Inc. and is not involved in any securities services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. Content, research, tools, and stock or option symbols are for educational and illustration purposes only and do not imply a recommendation or solicitation to buy or sell any particular security or to implement any particular investment strategy. Past performance may not be an indication of future results.

This article is written by our contributing advisor and presents the views of our contributing advisor, not the Kiplinger editorial team. You can check the consultant records with the SEC or with FINRA.

Managing Director of Client Experience, Mercer Advisors

Kara Duckworth is the managing director of Client Experience at Mercer consultant and also leads the company’s InvestHERs program, which focuses on providing financial planning to meet the specific needs of women. She is a CERTIFIED FINANCIAL PLANNER and Certified Divorce Financial Analyst®. She is a frequent speaker on financial planning topics and has been quoted in numerous industry publications.

Easy methods to deal with your good points throughout tax season if you happen to made cash on shares

Your goal as an investor should be to make money, and there are several ways you can do that. You can buy stocks that pay Dividends and pocket the money, or you can sell stocks at a stock price higher than what you paid and deposit the difference.

Selling stocks at a profit translates into capital gains – and the IRS will definitely want a piece of them. While sitting on a massive profit is theoretically a good problem because it means you killed a stock that you owned, it could also be a problem from a tax perspective.

Fortunately, there is an effective solution to this problem: a tactic known as tax loss harvest. And if you use it strategically, your enormous profit may not be such a problem after all.

Negate profits with losses

The extent to which you will be exposed to a heavy tax burden on your capital gains will depend on how long you held your shares before they were sold. If you’ve held it for a year or less, you’re short term Capital gains taxesand these can be expensive because they are the same Marginal tax rate You pay for normal income.

“The only way to grow your money”:Why new investors bought stocks during the pandemic

More:What are the investment income tax rates for 2021 and how can they be minimized?

If you’ve held your stock for at least a year and a day before the sale, the pain won’t be too bad as you end up in the cheaper long-term capital gains category. Taxes on long-term investment income are 0% for low to medium earners, 15% for medium to high earners, and 20% for the very rich. These rates are much lower than normal income tax rates, so it is generally worth keeping investments at least a year and a day before selling if possible.

Now let’s talk about how some or all of these gains can be negated. The solution is simple: sell poorly performing stocks in your portfolio at a loss. Capital losses can be used to offset capital gains. So if you take a loss of $ 6,000 and make profits of $ 10,000, you will only be subject to taxes on the remaining $ 4,000.

Note that capital losses are initially applied to profits of the same type. In other words, when you hedge a long-term capital loss, it is applied to your long-term capital gains first, and the remaining amount is then applied to short-term gains. This is an important distinction as it can affect the investments you want to liquidate first.

Another thing to know is that when you have a huge loss on your hands (enough to make all of your capital gains and a few more) you can use the rest to make up to $ 3,000 in tidy income per tax year balance). And any remaining loss you have after that can be carried over to the next tax year.

Sell ​​investments strategically

A big win on your hands could mean you Choose your stocks wisely and sold at the right time, but it could also mean trouble from a tax perspective. Selling other investments at a loss is a great way to offset what could otherwise be a huge tax burden.

And when you don’t have investments to unload at a loss, prepare to pay estimated quarterly taxes on your profits during the year. This way you will avoid being penalized by the IRS for underpaying your taxes.

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Mega Tens of millions jackpot soars to $850 million. The right way to deal with a windfall

Angela Weiss | AFP | Getty Images

Once again the Mega Millions jackpot has catapulted higher.

The grand prize now stands at a staggering $ 850 million – the third largest in lottery history – after no ticket matched all of the numbers drawn on Friday night. Then there is Powerball: the jackpot is estimated at $ 640 million for the Saturday night drawing.

Of course, the odds of winning either game aren’t in your favor: the chance that a single ticket will match all six numbers is 1 in 302 million for Mega Millions and 1 in 292 million for Powerball.

Even so, it is still worth thinking about how you would deal with such a stroke of luck if you passed the odds.

Jackpot winners are typically given six months to a year to claim their prize, depending on which state it was purchased in. This generally means there is no need to rush to the lottery headquarters.

In other words, the winners should take a deep breath.

Big money means big emotions

Whoever cracks one of the jackpots at the end should be prepared for a roller coaster ride of emotions.

Experts say the extent of their windfall can level off once the initial excitement of winning the jackpot subsides.

“Anyone experiencing newly created wealth … there is a sense of confusion and a sense of being overwhelmed,” said Valerie Galinskaya, executive director and director of the Merrill Center for Family Wealth.

Of course, you don’t have to do it alone.

Given the size of these jackpots, winners should assemble a team of seasoned professionals – including a lawyer, CPA, and financial advisor – to help them tackle the windfall.

“You want to hire the right consultants who can provide not only good advice but also advice tailored to your needs and desires,” said Galinskaya.

Protect your ticket and your identity

You should make a copy of your ticket, keep it in a safe place, i.e. in a safe deposit box or deposit with a bank, and defy the urge to share your messages with everyone in your life.

“Don’t immediately discuss it with anyone other than your immediate and trusted family,” said certified financial planner Jim Shagawat, a New Jersey-based partner advisor at AdvicePeriod of Los Angeles.

Also, if possible, you should protect your identity when you claim the jackpot. While the standard recommendation is to sign the back of the ticket, if, under state law, you set up a trust or limited liability company to claim the windfall, rather than doing it on your own behalf, it can compromise anonymity .

More from Personal Finance:
IRS is delaying starting tax returns until February 12th
Tackling Vacation Debt: These 8 Strategies Can Help
How to get out of vacation timeshare amid a pandemic

If your state laws require your name to be publicly known, then it pays to prepare how to respond when others bring up your roundtable, Galinskaya said.

“They say, ‘I’m really grateful and we’re still working on what it means to us,'” she said.

Prepare for the tax bill

For the $ 850 million Mega Millions jackpot, the cash option that most winners choose instead of an annuity is $ 628.2 million.

However, before that gets to you, 24% – or $ 150.8 million – will be withheld for federal taxes. You can also rest assured that you owe much more to Uncle Sam, as the maximum marginal rate of 37% applies to income over $ 523,600 for individual taxpayers and $ 628,300 for married couples filing together. As a rule, state taxes are also due.

Powerball’s $ 640 million jackpot has a flat-rate option of $ 478.7 million. The 24% withholding tax would be approximately $ 114.9 million. And again more would be due.

Think philanthropically

One way to lower your tax burden is to think in a nonprofit way. Basically, the government gives you a tax break if you use private money for public purposes.

“It’s not just about what you want to do for yourself and your family, it’s also philanthropic,” Galinskaya said.

You can donate up to 60% of your Adjusted Gross Income in cash to a nonprofit or a donor-recommended fund and receive a tax deduction for the amount in the year you donate. They can also set up a private foundation, donate their income, and then choose how to use it over time.