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  • I wonder how many choose the lump sum over the incrimental payouts...and where the rest of the money goes if they choose the lump sum. Is there some central lottery place where they have wild parties 24/7 with hookers and blow?


    ok that's my stupid random thought for the day.
  • I'm thankful I have a Powerball ticket.
  • gopher321: I wonder how many choose the lump sum over the incrimental payouts...and where the rest of the money goes if they choose the lump sum. Is there some central lottery place where they have wild parties 24/7 with hookers and blow?


    ok that's my stupid random thought for the day.


    If you invest the lump sum wisely, you'll probably end up with substantially more in 20 years than you would have gotten by choosing the yearly payout. The lottery commission would invest the money very, very conservatively.

    Of course, you also have the opportunity to blow it in an epic hookers-and-blow party that would leave you broke...but very happy.
  • That's a lot of hookers & blow.
  • In the spirit of the holidays, you know, sharing and all, I promise not to be pissed if I have to split the jackpot with one other winner.
  • Isn't the odds of winning something like one chance in 175,223,510? Wouldn't that make it able to be a theoretical 'good bet' at $1 per ticket?

    I'd totally buy a ticket if it had positive expected value.
  • I'd kind of like to win that.
  • Bought one when getting gas today. Played the lucky numbers on the random fortune cookie slip in my wallet. Random is random.

    /in bed
  • Lump sum payout = $165 million. Minus $57 million to the feds = $108 million. Paying off the mortgage on your house plus the mortgage on the two kids and paying off everyone's credit card and student loan and car payments can be done for under $1 million. Give $5 million apiece to the two kids. Establish college trust fund for the three grandchildren for $3 million. That would bring it down to $99 million. Invest $95 million in rock solid, non-taxable, interest bearing devices (think munis here) which pay 2.5% interest. This would leave you with $4 million for spending money the first year and if you limited your annual expenses to $2.375 million per year, you'd leave an estate worth $95 million when the wife and husband die.
  • Prey4reign: Lump sum payout = $165 million. Minus $57 million to the feds = $108 million. Paying off the mortgage on your house plus the mortgage on the two kids and paying off everyone's credit card and student loan and car payments can be done for under $1 million. Give $5 million apiece to the two kids. Establish college trust fund for the three grandchildren for $3 million. That would bring it down to $99 million. Invest $95 million in rock solid, non-taxable, interest bearing devices (think munis here) which pay 2.5% interest. This would leave you with $4 million for spending money the first year and if you limited your annual expenses to $2.375 million per year, you'd leave an estate worth $95 million when the wife and husband die.


    Your math is good, but underestimated. The lump sum payout is currently estimated at $212.8m
  • adenosine: Isn't the odds of winning something like one chance in 175,223,510? Wouldn't that make it able to be a theoretical 'good bet' at $1 per ticket?

    I'd totally buy a ticket if it had positive expected value.


    Powerball is $2 a ticket :(
  • Prey4reign: Lump sum payout = $165 million. Minus $57 million to the feds = $108 million. Paying off the mortgage on your house plus the mortgage on the two kids and paying off everyone's credit card and student loan and car payments can be done for under $1 million. Give $5 million apiece to the two kids. Establish college trust fund for the three grandchildren for $3 million. That would bring it down to $99 million. Invest $95 million in rock solid, non-taxable, interest bearing devices (think munis here) which pay 2.5% interest. This would leave you with $4 million for spending money the first year and if you limited your annual expenses to $2.375 million per year, you'd leave an estate worth $95 million when the wife and husband die.


    That's good! Now, how do I select the right numbers?
  • Billy Bathsalt: Prey4reign: Lump sum payout = $165 million. Minus $57 million to the feds = $108 million. Paying off the mortgage on your house plus the mortgage on the two kids and paying off everyone's credit card and student loan and car payments can be done for under $1 million. Give $5 million apiece to the two kids. Establish college trust fund for the three grandchildren for $3 million. That would bring it down to $99 million. Invest $95 million in rock solid, non-taxable, interest bearing devices (think munis here) which pay 2.5% interest. This would leave you with $4 million for spending money the first year and if you limited your annual expenses to $2.375 million per year, you'd leave an estate worth $95 million when the wife and husband die.

    That's good! Now, how do I select the right numbers?


    That, unfortunately, is a small matter left for you to figure out.
  • SultanofSchwing: adenosine: Isn't the odds of winning something like one chance in 175,223,510? Wouldn't that make it able to be a theoretical 'good bet' at $1 per ticket?

    I'd totally buy a ticket if it had positive expected value.

    Powerball is $2 a ticket :(


    Oh, well, fark it then.
  • After working a corporate bullshiat job for 5 years now and going from 25k to 27k a year I have to tell you that despite knowing that I'm just throwing away my money, I'm still willing to play the lottery just for the hope, the dream of telling them all to go fark themselves and then leaving to sip drinks with pretty tan girls on an island somewhere.

    Oh well, a man dream though, a man can dream.
  • The lottery is essentially a tax on those that don't understand Probability and Statistics. No wonder the schools don't offer it as a course anymore - they need future lottery suckers customers!

    OK by me..the government would be getting it from more taxes otherwise.
  • Spoiler alert: you're still not going to win the jackpot.
  • Prey4reign: Lump sum payout = $165 million. Minus $57 million to the feds = $108 million. Paying off the mortgage on your house plus the mortgage on the two kids and paying off everyone's credit card and student loan and car payments can be done for under $1 million. Give $5 million apiece to the two kids. Establish college trust fund for the three grandchildren for $3 million. That would bring it down to $99 million. Invest $95 million in rock solid, non-taxable, interest bearing devices (think munis here) which pay 2.5% interest. This would leave you with $4 million for spending money the first year and if you limited your annual expenses to $2.375 million per year, you'd leave an estate worth $95 million when the wife and husband die.


    I'd have to add in a few million to launch my campaign for Mayor of Toronto. The current one is a schmuck.
  • rcf1105: Spoiler alert: you're still not going to win the jackpot.


    I've got a system. It's rooted in math.

    /Solid retirement planning on my part.
  • SultanofSchwing: adenosine: Isn't the odds of winning something like one chance in 175,223,510? Wouldn't that make it able to be a theoretical 'good bet' at $1 per ticket?

    I'd totally buy a ticket if it had positive expected value.

    Powerball is $2 a ticket :(


    With the help of http://www.durangobill.com/PowerballOd ds.html I calculate the expected value of a ticket to 2.215 when you include all the prizes and assuming nobody else wins too.
  • If buying a ticket is straining your budget, you probably are just gonna blow it on meth or Four Loko anyway, so just go for it.
  • gopher321: I wonder how many choose the lump sum over the incrimental payouts...and where the rest of the money goes if they choose the lump sum. Is there some central lottery place where they have wild parties 24/7 with hookers and blow?


    ok that's my stupid random thought for the day.


    If you choose the lump sum, you get what the cash value is today. It means that you then get to invest the money however you see fit. If you choose the incremental payout, that's not as solid of an answer. Basically, as jake_lex stated, the lottery commission will hold onto the money, invest it in conservative investments and then the monthly payout is the interest of those investments. It's like me telling you that I'll give you $100, but instead, I put the $100 in a bank and give you the interest earned on that for the next 20-30 years. Sure, you'll get your $100, but it's more of a win for me because I also get to keep your $100.

    With inflation, a dollar is worth more today than it will be tomorrow, so unless there's some extenuating circumstance, you're better off taking the lump sum and then hiring people to manage it for you so you don't blow it on hookers.
  • rcf1105: Spoiler alert: you're still not going to win the jackpot.


    Spoiler alert: You aren't spoiling anything because people really do already know that, even the idiot ones that buy a lottery every day, they know it just like you do, but they continue to hope that they might, and when you are desperately poor, sometimes the hope is worth more than the $2 a day. But hey thanks for the mathematically correct but emotionally antagonistic reminder.
  • UseLessHuman: After working a corporate bullshiat job for 5 years now and going from 25k to 27k a year I have to tell you that despite knowing that I'm just throwing away my money, I'm still willing to play the lottery just for the hope, the dream of telling them all to go fark themselves and then leaving to sip drinks with pretty tan girls on an island somewhere.

    Oh well, a man dream though, a man can dream.



    and I said no salt, NO salt for the margarita, but it had salt on it, big grains of salt
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