Posted on 01/08/2016 8:52:35 AM PST by NRx
$496 million in pre-tax cash.
You know, with the lousy stock market today, I think I’d opt for the 20 year payout.
I play it too most times when it gets big enough that the tv newspeople start going bonkers
You are betting that the government will honor its obligation and make the distribution each of the next twenty years.
$500 million pre taxes instant payout-
$260oor so million after taxes
Wonder if it would be better taking the 30 year payout, or getting $260 right away and begin investing it?- of course you could invest your yearly payout over 30 years too-
I suppose real estate would be the safest way to store the wealth, along with a few bags of gold coins.
Never bought a ticket.
Illinois stopped paying out because of the budget. They are also wondering why ticket sales are off.
Its alot of money, and the odd’s are impossibly against you. Which is why it’s the perfect government scheme to tax people without any complaints from them.
Good question for which there are no certain answers. The US government is so rapacious, and some states are starting to issue IOU’s rather than payments, that I would be inclined to take the lump sum payout and move it to somewhere more safe and out of reach of the US. That is becoming increasing difficult, however.
Are there states that do not participate?
I seem to remember that.
I could spare 2$ to boost the Freepathon!
If rich people are so very evil that the democrats feel the need to punish them into poverty, then why do so many people want to be rich?
(in full disclosure, yes I am in a couple of “pools” for this drawing...)
You’re also betting that the dollar will be worth anything in the future plus it’s earning nothing while waiting for you to get a check every year.
The annuity is based on the interest rate if the cash value is invested in ultra-safe bonds, usually 30 years US Treasuries. With interest rates this low I would think it a poor long term investment since the annuity does not adjust for possibly higher inflation and historically stocks are a much better investment over the long term.
The big argument in favor of the annuity is that it is essentially stupid insurance. It allows the winner to do some dumb things and make mistakes, maybe taking investment advice from uncle Roy, or letting your dead beat cousins mooch off you for a few years until you get tired of it, and still know that that you are not gonna be broke. A 2015 study by the Harvard business School showed that about 40% of lottery winners burn through their winnings in the first 5 years. Most people who play the lottery, and therefor most who win, come from backgrounds that leave them intellectually and temperamentally ill-equipped to deal with sudden wealth. For them, the annuity is almost always going to be the best choice, though it is rarely taken.
Powerball is 26 payments, not 20. They buy an annuity in your name - hard to see how they have any ability to not pay it out, the money shouldn’t even pass through them once you’ve claimed the prize.
Off to buy a ticket now!
Alabama, California, Mississippi, Nevada, Wyoming, Utah, Alaska and Hawaii do not have the Powerball lottery, unless they’ve added it recently.
LOL!
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