$1 million Powerball win, divided by 11
Eleven people from Paducah woke up a lot richer Thursday. The group matched five Powerball numbers, earning them $1 million. The group, the “Tiny Tornadoes,” is made up of members of McNabb Elementary head start support staff.
Each winner in the pool would get $62,727.27 after the federal government takes 25 percent and the state of Kentucky gets 6 percent.
Paducah’s Smoke Shop will get a $10,000 bonus for selling the winning ticket. That bonus is separate from the $1 million prize. Kentucky Lottery spokesman Chip Polston says this will have an immediate impact on the store. “Any retailer that has a sold a $1 million or more will tell you, they see a very promising spike in sales short term, and they even see promising sales in the future,” he said.
Financial expert Dean Owen offered some free advice to those who may have woken up with a little more money in their pockets. “They may be able to disperse 11 checks, but there’s going to be one IRS form. It’s called a W2-G. It only has a place for one social security number,” Owen added.
He’s talking about our Paducah winners. He thinks an LLC is the best way to divide the money. He says it will keep winnings with your pool from being taxed as a gift. Owen says most winners end up worse off financially after just a year of hitting those numbers. He says get out of debt, only blow 10 to 15 percent on fun, and invest in your future.
“Einstein said compound interest was the eighth great wonder of the world. There’s a reason for that. That’s how you can take that $60,000 and turn it into a half a million in just a few years,” Owen says.