powerball

[OneFineAcre]

I bought $10.00 worth and also entered the pool at my old job. A few years ago there was a group of 15 teachers in our county that won 76 million in State lottery; I don't think that any of them are happy about it 7 years later. They had been playing together for 7 years and always played the same numbers.

Why are they not happy?

 

[babsbag]

Have you ever thought about this
Most winners take the lump sum payment which is a little more than half the jackpot instead of the full amount paid over 20 years
Since most take the lump sum you can bet that's not the right choice and is beneficial to the lottery
900 million would be 45 million a year for 20 years
After tax it would be a check each year for 24.5 million
I think I could manage

I think most people take the lump sum since you can't leave it to anyone as inheritance. I am not sure what I would do, wish I had to worry about it. But 24.5 million a year sounds really nice.

 

[OneFineAcre]

I think most people take the lump sum since you can't leave it to anyone as inheritance. I am not sure what I would do, wish I had to worry about it. But 24.5 million a year sounds really nice.

I think you are wrong there
The payments continue to your estate if you pass away

 

[greybeard]

I had the better odds of winning powerball than the Houston Texans had winning their playoff game tonight.

 

[frustratedearthmother]

I needa go take off my JJ Watt jersey...just not quite ready to accept their total humiliation tonight... Hoyer was NOT the man...

 

[babsbag]

think you are wrong there
The payments continue to your estate if you pass away

Well, that is entirely possible, just hearsay on my part, never looked in to it since I never won.

Why aren't they happy...divorce, debt, family mad, etc. All the usual reasons that you hear about actually came to fruition.

 

[Latestarter]

Actually, the lump sum is the way to go as the other is actually an annuity paid out over 30 years (cash value exactly the same as the cash value paid out) for power ball and 26 years for megamillions. At 900 mil, that's 30 mill a year before taxes and 18 mil or less per year after. I don't expect to be around 30 years from now, so it makes no sense to annuitize it out. Also, since taxes historically increase over time, as does inflation, the value of the winnings decreases over time. Granted, when your talking tens of millions, a few stray tens of thousands matter little...

In most states, the payout(s) do actually go to the estate and can be passed on. I know they can here in CO. As for the bad stuff... I'm willing to carry that potential burden for the good I could do with the money.

 

[OneFineAcre]

Actually, the lump sum is the way to go as the other is actually an annuity paid out over 30 years (cash value exactly the same as the cash value paid out) for power ball and 26 years for megamillions. At 900 mil, that's 30 mill a year before taxes and 18 mil or less per year after. I don't expect to be around 30 years from now, so it makes no sense to annuitize it out. Also, since taxes historically increase over time, as does inflation, the value of the winnings decreases over time. Granted, when your talking tens of millions, a few stray tens of thousands matter little...

In most states, the payout(s) do actually go to the estate and can be passed on. I know they can here in CO. As for the bad stuff... I'm willing to carry that potential burden for the good I could do with the money.[/QUOTE

 

[OneFineAcre]

You have a point about rising inflation and taxes but both will effect you if you take the lump sum as well
Your statement that it is better to lake the lump sum is better is flawed overall though

 

[babsbag]

I didn't win