Using that formula, a person making $100,000 a year would need to hit a lottery jackpot of $10 million to continue their current lifestyle, while allowing some responsible splurges - buying a new house or car, paying off any outstanding debts or sharing some of the winnings with friends and family. "I like 100 times their salary a little bit better, because it gives them a cushion," he says. Pagliarini's rule of thumb is to multiply your current salary by anywhere from 70 to 100 to get a good idea of what you'd need to survive on at your current spending rate over the next several decades. That's just above the country's median household income: $70,784, according to the U.S. If you stash that money in a low-risk investment portfolio, you could then safely withdraw 4% of it annually, which would be $70,800. Your payout would be roughly $2.9 million, resulting in a take-home amount around $1.77 million after accounting for roughly 40% in federal and state tax bills, depending on where you live. Say you win a $4.47 million lottery jackpot, and opt to take lump sum payout - typically about 66% of the total advertised jackpot, Pagliarini notes - over the annuity option, which splits a larger total amount into annual installments paid out over 29 years.
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