Man wins $5million jackpot on New York scratch-off game - but takes home just ... trends now
A lottery winner has taken home less than his winning ticket after opting for a lower cash payment.
Daniel Grijalva Esquivel, from Kansas City, won $5 million on the New York Lottery.
But instead of receiving the full cash sum in annual payments, he opted for a single payout of $3,255,000.
If winners choose to receive their money in yearly payments, they usually end up getting closer to the lottery's advertised winnings - after paying taxes and fees.
Esquivel won the New York Lottery's Cash X100 scratch-off game after buying the $20 ticket from a convenience store in Spring Valley, New York.
Daniel Grijalva Esquivel, from Kansas City, won $5 million on the New York Lottery
Esquivel won the New York Lottery's Cash X100 scratch-off game which costs $20 a ticket
Deciding whether to take the jackpot as a lump sum or as an annuity is one of the first decisions a lottery winner must make.
The biggest allure of the annuity is having a guaranteed income stream for the next 30 years and it offers peace of mind.
Most winners, however, choose the lump sum cash option, but this is also considered income and is therefore subject to Federal, State, and local income taxes.
Andrew Stoltmann, a Chicago-based lawyer who has represented several lottery winners told CNBC that taking the lump sum option can be a 'big mistake.'
Spreading out the payments gives you a chance to build an experienced team, including an accountant, financial advisor and an attorney to protect the money and your best
