Research a news story regarding a lottery winner that ended up losing everything after their big windfall. Summarize the story and include the link to the news article. Also, address the following questions in your post:

• As the lottery winner's financial planner how would you have consulted the client regarding how the time value of money and taxes can impact their winnings?
• Using your knowledge from this course how would you advise your client to spend their winnings Two paragraph minimum (5-6 sentences for each paragraph)

Practical Finance The Lottery: Congratulations, You're Rich-But Not as Rich as You Thought State lottery jackpots are enormous sums of money, but they're not really as big as they're made out to be. That's because of the time value of money and the way the prizes are paid. Large lottery prizes are typically paid over 25 years, but the lottery authority states the winnings as the sum of the payments without consideration of time value. For example, a $25 million prize is really $1 million a year for 25 years, an annuity. What the winner really has today is the present value of that annuity. If a lucky player wants her money immediately, she has to accept the discounted value of the stream of payments. Suppose the interest rate is 7%. A calculation using the present value of an annuity formula reveals that the winner's real prize is about $11.7 million. That's nothing to sneeze at, but it is a far cry from $25 million. To make matters worse, winnings are taxable, largely in the top bracket. Let's be optimistic and assume the winner hires a good tax accountant and only winds up paying about 32% in taxes. That knocks down the immediately available, after-tax winnings to about $8.4 million, a third of the amount advertised. Practical Finance The Lottery: Congratulations, You're Rich-But Not as Rich as You Thought State lottery jackpots are enormous sums of money, but they're not really as big as they're made out to be. That's because of the time value of money and the way the prizes are paid. Large lottery prizes are typically paid over 25 years, but the lottery authority states the winnings as the sum of the payments without consideration of time value. For example, a $25 million prize is really $1 million a year for 25 years, an annuity. What the winner really has today is the present value of that annuity. If a lucky player wants her money immediately, she has to accept the discounted value of the stream of payments. Suppose the interest rate is 7%. A calculation using the present value of an annuity formula reveals that the winner's real prize is about $11.7 million. That's nothing to sneeze at, but it is a far cry from $25 million. To make matters worse, winnings are taxable, largely in the top bracket. Let's be optimistic and assume the winner hires a good tax accountant and only winds up paying about 32% in taxes. That knocks down the immediately available, after-tax winnings to about $8.4 million, a third of the amount advertised