DM72 Posted January 11, 2016 Share Posted January 11, 2016 http://www.usatoday.com/story/news/nation/2016/01/10/powerball-jackpot-winning-numbers/78587362/ I do. Link to comment Share on other sites More sharing options...
Momma There Goes That Man Posted January 11, 2016 Share Posted January 11, 2016 Sign me up lol. Link to comment Share on other sites More sharing options...
Riggo-toni Posted January 11, 2016 Share Posted January 11, 2016 Might be enough to make me willing to buy season tickets. Link to comment Share on other sites More sharing options...
Predicto Posted January 11, 2016 Share Posted January 11, 2016 Lotteries really are nothing more than a regressive tax on the poor and desperate. That billion dollar payout represents about 3 billion dollars worth of losing tickets, the overwhelming majority of which are bought by those in lower income brackets. Link to comment Share on other sites More sharing options...
sacase Posted January 11, 2016 Share Posted January 11, 2016 I'll throw a $20 at it, what the hell, nothing ventured nothing gained. Someone has to win it eventually. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 11, 2016 Share Posted January 11, 2016 Lotteries really are nothing more than a regressive tax on the poor and desperate. That billion dollar payout represents about 3 billion dollars worth of losing tickets, the overwhelming majority of which are bought by those in lower income brackets. So? How many are you buying, P? At $1.3 billion, I can finally almost afford to shop at Whole Foods. Link to comment Share on other sites More sharing options...
sacase Posted January 11, 2016 Share Posted January 11, 2016 Lotteries really are nothing more than a regressive tax on the poor and desperate. That billion dollar payout represents about 3 billion dollars worth of losing tickets, the overwhelming majority of which are bought by those in lower income brackets. Hey they can contribute to the schools that they use! I like it! Link to comment Share on other sites More sharing options...
Riggo-toni Posted January 11, 2016 Share Posted January 11, 2016 If people chose to buy them, then it's not a tax, anymore than allowing stupid people to buy cigarettes. Link to comment Share on other sites More sharing options...
Destino Posted January 11, 2016 Share Posted January 11, 2016 With a prize that big and so many people playing, it becomes fun to buy a ticket. Feels less like the lotto and more like having chips in your pocket in Vegas. It's a shared experience and the silly dream of defying the odds. No one I know usually even remember the lottery exists, but now I have people trying to talk me into larger groups and agreements to share. Link to comment Share on other sites More sharing options...
TheGoodBits Posted January 11, 2016 Share Posted January 11, 2016 You'd still need to make some really nice investments to become a billionaire if you hit the jackpot. Current cash value is $868m. Feds will take close to 40%. State will tax their slice (5.75% in both MD and VA). So figure you'll end up with maybe $450m and need to more than double your money before you hit billionaire status. Link to comment Share on other sites More sharing options...
Destino Posted January 11, 2016 Share Posted January 11, 2016 Is there a need to take the cash option with a prize this enormous? Seems like unless you really know how to manage money finding a home for that much cash all at once would be a bear of a task. Plus, the annuity at this point has to be something like 40 million a year right? Link to comment Share on other sites More sharing options...
TheGoodBits Posted January 11, 2016 Share Posted January 11, 2016 Is there a need to take the cash option with a prize this enormous? Seems like unless you really know how to manage money finding a home for that much cash all at once would be a bear of a task. Plus, the annuity at this point has to be something like 40 million a year right? Well you would absolutely need someone to manage your money. With a lump sum like that, you should be able to make as much every year in interest off your investments as you would from the annuity (especially given the tax incentives for capital gains vs regular income). Unless you're really dumb with the money (read: like 99.9% of winners) you would be better off taking the lump sum. Link to comment Share on other sites More sharing options...
Predicto Posted January 11, 2016 Share Posted January 11, 2016 So? How many are you buying, P? At $1.3 billion, I can finally almost afford to shop at Whole Foods. I guess I'll buy one. It will give me some fun daydreams for the next couple of days, and if fortune is going to smile on me, I need one ticket in order to have a chance. But if you are buying a bunch of tickets, you are getting burned. If people chose to buy them, then it's not a tax, anymore than allowing stupid people to buy cigarettes. True, it is technically not a tax. But the regressive effect is the same. It takes money out of the hands of the poor, desperate and mathematically unschooled so that the government can be funded without taking money from the well-off. Link to comment Share on other sites More sharing options...
sacase Posted January 11, 2016 Share Posted January 11, 2016 With a prize that big and so many people playing, it becomes fun to buy a ticket. Feels less like the lotto and more like having chips in your pocket in Vegas. It's a shared experience and the silly dream of defying the odds. No one I know usually even remember the lottery exists, but now I have people trying to talk me into larger groups and agreements to share. I guess I'll buy one. It will give me some fun daydreams for the next couple of days, and if fortune is going to smile on me, I need one ticket in order to have a chance. But if you are buying a bunch of tickets, you are getting burned. I was reading an article about this. With the odds so stacked against you, pools really have no impact on your odds of winning. With that being said, I think it actually hurts you if you actually win because you have to share it with a lot of people. There is really no need to get more than one ticket (says the guy who is buying 10). LOL Link to comment Share on other sites More sharing options...
CrypticVillain Posted January 11, 2016 Share Posted January 11, 2016 I brought three on Saturday and lost one of the tickets. I would have been sick if that was the ticket that had won. lol Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 11, 2016 Share Posted January 11, 2016 Is there a need to take the cash option with a prize this enormous? Seems like unless you really know how to manage money finding a home for that much cash all at once would be a bear of a task. Plus, the annuity at this point has to be something like 40 million a year right? Really it depends on what type of return you can realistically achieve (and if top tax rate goes down or stays the same over the next 30 years). I've read that anything less than a 6% return you are better off to take the annual payment (if top tax rate stays flat or goes down). Anything more than a 6% return, you are better off taking the lump sum (provided that maximum tax rate doesn't go down). Link to comment Share on other sites More sharing options...
Momma There Goes That Man Posted January 11, 2016 Share Posted January 11, 2016 It's just fun to participate in a crazy what-if scenario Link to comment Share on other sites More sharing options...
DM72 Posted January 11, 2016 Author Share Posted January 11, 2016 I was reading an article about this. With the odds so stacked against you, pools really have no impact on your odds of winning. With that being said, I think it actually hurts you if you actually win because you have to share it with a lot of people. There is really no need to get more than one ticket (says the guy who is buying 10). LOL Outside of a few IMMEDIATE family members, everyone else can kick rocks. Link to comment Share on other sites More sharing options...
The Evil Genius Posted January 11, 2016 Share Posted January 11, 2016 I'm buying a 67 Impala and a Tesla X (as a carbon offset), if I win. I'll buy all the tailgate regulars season tickets, too. Assuming you can track me down. Link to comment Share on other sites More sharing options...
Destino Posted January 11, 2016 Share Posted January 11, 2016 Really it depends on what type of return you can realistically achieve (and if top tax rate goes down or stays the same over the next 30 years). I've read that anything less than a 6% return you are better off to take the annual payment (if top tax rate stays flat or goes down). Anything more than a 6% return, you are better off taking the lump sum (provided that maximum tax rate doesn't go down). My odds of generating good returns on a giant lump of cash are exactly ZERO. I might have a chance if left in peace to see to my vast fortune, but the odds of that are worse than winning the lottery. My family would be organizing raids on my treasure regularly and carrying off large piles of it to consume in their new shiny homes. When the parties finally ran their course the bleary eyed survivors would be reaching for their axes again, itching for another run at me. I have no defense against this, I love them and they've been mostly good to me. I think I'd take the annuity so I could say "look I only have 20 million, I can only do so much!" Link to comment Share on other sites More sharing options...
Corcaigh Posted January 11, 2016 Share Posted January 11, 2016 No one I know usually even remember the lottery exists, but now I have people trying to talk me into larger groups and agreements to share. During the infrequent massive jackpots it shifts a little more from a regressive 'tax' to progressive, because people who never otherwise play the lottery throw their $2 into the lottery toilet. And yes, I'm part of our office pool for the mega jackpots. Better, and cheaper than Boy Scout Popcorn. Link to comment Share on other sites More sharing options...
BRAVEONAWARPATH Posted January 11, 2016 Share Posted January 11, 2016 Is there a need to take the cash option with a prize this enormous? Seems like unless you really know how to manage money finding a home for that much cash all at once would be a bear of a task. Plus, the annuity at this point has to be something like 40 million a year right? Take the cash option and dump the majority into treasury bonds. Even with super low rates you'd still be earning millions of dollars in interest per year. I've done my research. Link to comment Share on other sites More sharing options...
Riggo-toni Posted January 11, 2016 Share Posted January 11, 2016 Well you would absolutely need someone to manage your money. With a lump sum like that, you should be able to make as much every year in interest off your investments as you would from the annuity (especially given the tax incentives for capital gains vs regular income). Unless you're really dumb with the money (read: like 99.9% of winners) you would be better off taking the lump sum. I would take the annuity anyday. After paying taxes on the lump sum payment you have to earn about a 10% return on what's left to make as much as the annuity. I would much prefer the freedom of knowing there's a guaranteed 50+ million coming my way every year for the next 25 years than have to manage 500million in investments. Link to comment Share on other sites More sharing options...
Larry Posted January 11, 2016 Share Posted January 11, 2016 Some math says that if you take the annual payments, then after taxes, it works out to $83K a day. Not that I've thought much about it, or anything. I've actually figured that, if I win, I'd be giving a lot of it away. To the point where I've actually been idly speculating as to whether I'd be able to figure out a way to avoid double taxation. (35% on everything I get, and then another 40% on everything I give away.) One of my thoughts has been wondering how I could give away Disney vacations to complete strangers, without them thinking I'm Michael Jackson inviting their kids to spend the weekend at my ranch. Link to comment Share on other sites More sharing options...
Destino Posted January 11, 2016 Share Posted January 11, 2016 Take the lump sum and dump the majority into treasury bonds. Even with super low rates you'd still be earning millions of dollars in interest per year. I've done my research. I wouldn't do anything with it, you must understand that I am just a man. A humble man. A man married to an accountant. Life would go on as it normally does. I'd ask how much I am allowed to spend and try hard to look like I'm paying attention as she explains all the amazing things she's done with our money this month before finally giving me my prize number and wishing me good luck at Home Depot. I'm sure rich people have a fancier version of Home Depot, and if we won, I'd go there instead. Link to comment Share on other sites More sharing options...
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