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POWERBALL JACKPOT $675 MILLION 01-09-16

BabyBoomer

By BabyBoomer
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gallahadesquire Grand Master

gallahadesquire

Posted
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Forgot to ask, if it hit a billion, would you take the lump sum, or 30 year annuity? I read about all those winners who took the lump sum and are broke after just a few years. For that big of a prize, I'm thinking a 30 year annuity will still be a huge payday every year.

RE: Annuity

 

Let's say it's at $900,000,000. That would straight-line annuitize to $30,000,000 a year for thirty years.

 

After taxes, a lump-sum distribution gives about $225,000,000. (Half the total, minus about 45% for taxes).

 

$225,000,000 should return $11,250,000 per annum in perpetuity (assuming 5% return, which is absurdly low).

 

Dunno, but at my age, better the bird in the hand than two in the bush.

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gallahadesquire Grand Master

gallahadesquire

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Additional random comment: if one takes the annuity, and one dies, at least one state (Texas, as I remember it) considers the remaining payout as immediate income. So, if annuituzed, the $30,000,000 per annum, after ten years, creates an immediately taxable income of $600,000,000.

 

People who have taken the annuity frequently forgo the renmaining payments upon the annuitant's death for this reason.

 

God is in the details.

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rguer Enthusiast

rguer

Posted
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One of the terms of buying the ticket is that you agree to basically give up your privacy, you must appear and receive the check in front of flashing cameras, and they can use your name/image in publicity. It's not an option to take the money privately. Not with Powerball.

 

Depends on the state. In some jurisdictions only your name and city need to be released.

 

http://www.powerball.com/pb_info.asp says:

 

CAN I REMAIN ANONYMOUS WHEN I HIT THE JACKPOT?

 

All but a handful of states (DE, KS, MD, ND, OH for now) have laws that require the lottery to release the name and city of residence to anyone who asks. Some states are considering anonymous claims. Some states are considering a one-year period of anonymity to give the winners time to get used to their new lifestyle. Other states may offer to assist you in some way, including such things as the creation of trusts. But generally, you will want to hire an attorney to review the laws in your state to see what options you might have. Photos and press conferences are up to you for most part, though some states add a requiremment for photos on their tickets. Check with your state lottery to see if photos or more are required. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview. Even if the you can keep your identity secret from the press and the public, you will have to be known to the lottery - so they can confirm that you are eligible to play and win.

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deej Grand Master

+ deej

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Which is why buying multiple tickets doesn't make sense to me. You get the same dream for $2 as $20, and you're not going to actually win in either case.

 

Yup. But I always have a $20 bill in my wallet but don't always have two $1 bills. <shrug>

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MrMiniver Community Regular

MrMiniver

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Which is why buying multiple tickets doesn't make sense to me. You get the same dream for $2 as $20, and you're not going to actually win in either case.

 

Kevin Slater

 

I agree. Spending the $2 allows one to participate, dream for a few minutes, and move on. People who buy multiple tickets just seem like total fools to me.

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purplekow Grand Master

+ purplekow

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I bought 5 tickets. One of which had the Powerball number which heighted my experience as I checked that number first. Overall with lottery tickets, I am on the positive side. I rarely buy them and I have won over 100 dollars several times. They have a lottery ticket here in Jersey which is a crossword puzzle where you scratch off individual letters and then cross them out on the board. It takes about 10 minutes to play and for $1 I used to buy one once or twice a week to keep way unwanted lunch companions. I ate at a deli next to my office and people thought nothing of coming up and asking for medical advice. I was quite lucky with that game and won more than I lost, usually $1 or $5 dollars but a few times bigger prizes. So 5 tickets did not seem like a huge investment and I did get a small bit of excitement for it. In fact, more excitement than I got from my worst hire and that cost me $250.

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Kevin Slater Grand Master

Kevin Slater

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I understand that a $2 ticket gives a one-in-292 million chance of winning ~$700M. If we assumed away taxes, split pots and the delayed payout (time value of money), buying tickets would be rational in this instance. Especially given the slew of other payouts for partial hits (5 out of 6, etc.), your expected return is actually be greater than the $2 invested.

 

For once, the lottery would not be a tax on those who are bad at math (were it not for taxes, split pots and the delayed payout).

 

Too good to be true.

 

At a $1.4 billion jackpot, after factoring in the likelihoods of multiple winners and split jackpots, as well as the certainty of federal taxation, the expected value of a Powerball ticket for which you paid $2 is only $1.32. (http://fivethirtyeight.com/features/billion-dollar-powerball-lottery/?ex_cid=538twitter)

 

Kevin Slater

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quoththeraven Grand Master

+ quoththeraven

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Too good to be true.

 

At a $1.4 billion jackpot, after factoring in the likelihoods of multiple winners and split jackpots, as well as the certainty of federal taxation, the expected value of a Powerball ticket for which you paid $2 is only $1.32. (http://fivethirtyeight.com/features/billion-dollar-powerball-lottery/?ex_cid=538twitter)

 

Kevin Slater

 

Now you tell me! :eek:

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JamahlBrandon Newbie

JamahlBrandon

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I agree. Spending the $2 allows one to participate, dream for a few minutes, and move on. People who buy multiple tickets just seem like total fools to me.

 

Lol, true. I actually bought MY FIRST ticket today just because the hype was nagging at me. I've just never been into the concept of it, not to mention the spiritual/faith aspect of it, but I'm just like WTF...the dream of it kinda brightened my day a little bit. Especially of the fact that I'm technically doing the same thing when I purchase an ad.

 

That said, I spent $6 on lotto, but also $6 on a classified ad last month. The classified ad: introduced me to 3 clients, including a long-lost regular and still bought in value last night. So...I prefer to gamble on something that I can control.

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