Lucky for Life
| Match | Payout | Odds |
|---|---|---|
| 5+LB | $1,000 a day for life* | 1 in 30,821,472 |
| 5 | $25,000 a year for life* | 1 in 1,813,028 |
| 4+LB | $5,000 | 1 in 143,356 |
| 4 | $200 | 1 in 8,433 |
| 3+LB | $150 | 1 in 3,413 |
| 3 | $20 | 1 in 201 |
| 2+LB | $25 | 1 in 250 |
| 2 | $3 | 1 in 15 |
| 1+LB | $6 | 1 in 50 |
| 0+LB | $4 | 1 in 32 |
*As an alternative to these lifetime annuity prizes, you can also claim a cash option: $5,750,000 for match 5+LB and $390,000 for match 5.
There is about a 1 in 8 chance of winning any prize. The annuity lasts for twenty years or the winner's natural life, whichever is longer. I guess if the winner dies before the minimum 20-year annuity period their heir or estate gets to continue collecting.
Here is my analysis of this game. This is ignoring any potential taxation and jackpot sharing, which can affect the top two prizes.
| Match | Combinations | Probability | Prize | Return |
|---|---|---|---|---|
| 5+LB | 1 | 0.00000003 | * | * |
| 5 | 17 | 0.00000055 | * | * |
| 4+LB | 215 | 0.00000698 | 5000 | 0.034878282 |
| 4 | 3,655 | 0.00011859 | 200 | 0.023717232 |
| 3+LB | 9,030 | 0.00029298 | 150 | 0.043946636 |
| 3 | 153,510 | 0.00498062 | 20 | 0.099612374 |
| 2+LB | 123,410 | 0.00400403 | 25 | 0.10010067 |
| 2 | 2,097,970 | 0.06806846 | 3 | 0.204205367 |
| 1+LB | 617,050 | 0.02002013 | 6 | 0.120120804 |
| 0+LB | 962,598 | 0.03123141 | 4 | 0.124925636 |
| Any | 3,967,456 | 0.128723768 | Various | 0.751507001 + Annuity EV |
The return is heavily affected by the annuity period; in fact, the top two prizes are the largest part of the equation, with the top prize worth 0.237010095 for a twenty-year annuity period and the second prize worth 0.275781767.
For the house edge, I will provide a few example values I find interesting. Let's take a year to be 365.25 days, which would make the top prize worth $365,250 per year.
- Based on the cash prizes in lieu of the annuity, the game has a 42.341% house edge.
- The minimum 20-year annuity period results in a 36.785% house edge.
- Each additional year added to the annuity period reduces the house edge by 1.282pp.
- The break-even annuity period, where the return of the game is $2, the same as the ticket price, is 48.694 years. I guess this would mean that young, healthy people have an advantage when playing this game.
- The return for the cash prizes is the same as 15.666 years of annuity, so if you win the top prize but won't live longer than that to enjoy it and don't care if your descendants enjoy it, you should take the cash prize .
I just wanted to share my analysis of this game with you all because I didn't see this game on the Wizard of Odds website and only saw a little bit about an older version of the game in past threads. Hope you enjoy, and that I didn't screw anything up!
Quote: grossmynThe return for the cash prizes is the same as 15.666 years of annuity, so if you win the top prize but won't live longer than that to enjoy it and don't care if your descendants enjoy it, you should take the cash prize .
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(trimmed)
I wonder if a strong prenup and getting involved with an attractive younger person becomes a mutually beneficial play.
Quote: grossmynThere is a lottery game called Lucky for Life which offers a lifetime annuity as its top prize, $1,000 a day for life, and its second prize, $25,000 a year for life. It is originally from New England but is now offered in over twenty states across the US. It draws from two matrices, much like the other national games like Powerball: five of 48 white balls and one of 18 lucky balls. Tickets are $2 and it draws daily. This is the pay table from the Colorado Lottery:
Match Payout Odds 5+LB $1,000 a day for life* 1 in 30,821,472 5 $25,000 a year for life* 1 in 1,813,028 4+LB $5,000 1 in 143,356 4 $200 1 in 8,433 3+LB $150 1 in 3,413 3 $20 1 in 201 2+LB $25 1 in 250 2 $3 1 in 15 1+LB $6 1 in 50 0+LB $4 1 in 32
*As an alternative to these lifetime annuity prizes, you can also claim a cash option: $5,750,000 for match 5+LB and $390,000 for match 5.
There is about a 1 in 8 chance of winning any prize. The annuity lasts for twenty years or the winner's natural life, whichever is longer. I guess if the winner dies before the minimum 20-year annuity period their heir or estate gets to continue collecting.
Here is my analysis of this game. This is ignoring any potential taxation and jackpot sharing, which can affect the top two prizes.
Match Combinations Probability Prize Return 5+LB 1 0.00000003 * * 5 17 0.00000055 * * 4+LB 215 0.00000698 5000 0.034878282 4 3,655 0.00011859 200 0.023717232 3+LB 9,030 0.00029298 150 0.043946636 3 153,510 0.00498062 20 0.099612374 2+LB 123,410 0.00400403 25 0.10010067 2 2,097,970 0.06806846 3 0.204205367 1+LB 617,050 0.02002013 6 0.120120804 0+LB 962,598 0.03123141 4 0.124925636 Any 3,967,456 0.128723768 Various 0.751507001 + Annuity EV
The return is heavily affected by the annuity period; in fact, the top two prizes are the largest part of the equation, with the top prize worth 0.237010095 for a twenty-year annuity period and the second prize worth 0.275781767.
For the house edge, I will provide a few example values I find interesting. Let's take a year to be 365.25 days, which would make the top prize worth $365,250 per year.
- Based on the cash prizes in lieu of the annuity, the game has a 42.341% house edge.
- The minimum 20-year annuity period results in a 36.785% house edge.
- Each additional year added to the annuity period reduces the house edge by 1.282pp.
- The break-even annuity period, where the return of the game is $2, the same as the ticket price, is 48.694 years. I guess this would mean that young, healthy people have an advantage when playing this game.
- The return for the cash prizes is the same as 15.666 years of annuity, so if you win the top prize but won't live longer than that to enjoy it and don't care if your descendants enjoy it, you should take the cash prize .
I just wanted to share my analysis of this game with you all because I didn't see this game on the Wizard of Odds website and only saw a little bit about an older version of the game in past threads. Hope you enjoy, and that I didn't screw anything up!
link to original post
Lucky for life SOUNDS good, getting set for LIFE until the Lottery goes bankrupt like what happened with the still current Publisher's Clearinghouse Lottery Bankruptcy which left around 10 "For life," Winners in big trouble. Lump sum cash is always the way to go because you're STILL okay if the Lottery goes bankrupt in the future. 💡
Quote: DieterQuote: grossmynThe return for the cash prizes is the same as 15.666 years of annuity, so if you win the top prize but won't live longer than that to enjoy it and don't care if your descendants enjoy it, you should take the cash prize .
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(trimmed)
I wonder if a strong prenup and getting involved with an attractive younger person becomes a mutually beneficial play.
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I was thinking of a Sixth Sense kind of story based on this, where the winner all of a sudden stops getting his payments and he doesn't know why.
Maybe it can turn into a Total Recall story where God deems it an injustice and he gets to "be" one of the other lottery winners and enjoy his prize as someone else, but not remembering he was ever the other, deceased prizewinner. Leaving everybody walking out of the movie wondering which fate is better, which is worse, or if anything at all makes a difference, if that's how it works.
Quote: MDawgWhat kind of people play lotteries regularly? Perhaps the types for whom $1000 a day wouldn’t nearly be enough to support their invigorated gambling addictions.
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Lots of people play the Lottery regularly. A guy admitted he plays $1,000 in lottery EVERY day! 😱😳 That's $365,000 a year in lottery games! 😱😳
Quote: grossmynThere is a lottery game called Lucky for Life which offers a lifetime annuity as its top prize, $1,000 a day for life, and its second prize, $25,000 a year for life. It is originally from New England but is now offered in over twenty states across the US. It draws from two matrices, much like the other national games like Powerball: five of 48 white balls and one of 18 lucky balls. Tickets are $2 and it draws daily. This is the pay table from the Colorado Lottery:
Match Payout Odds 5+LB $1,000 a day for life* 1 in 30,821,472 5 $25,000 a year for life* 1 in 1,813,028 4+LB $5,000 1 in 143,356 4 $200 1 in 8,433 3+LB $150 1 in 3,413 3 $20 1 in 201 2+LB $25 1 in 250 2 $3 1 in 15 1+LB $6 1 in 50 0+LB $4 1 in 32
*As an alternative to these lifetime annuity prizes, you can also claim a cash option: $5,750,000 for match 5+LB and $390,000 for match 5.
There is about a 1 in 8 chance of winning any prize. The annuity lasts for twenty years or the winner's natural life, whichever is longer. I guess if the winner dies before the minimum 20-year annuity period their heir or estate gets to continue collecting.
Here is my analysis of this game. This is ignoring any potential taxation and jackpot sharing, which can affect the top two prizes.
Match Combinations Probability Prize Return 5+LB 1 0.00000003 * * 5 17 0.00000055 * * 4+LB 215 0.00000698 5000 0.034878282 4 3,655 0.00011859 200 0.023717232 3+LB 9,030 0.00029298 150 0.043946636 3 153,510 0.00498062 20 0.099612374 2+LB 123,410 0.00400403 25 0.10010067 2 2,097,970 0.06806846 3 0.204205367 1+LB 617,050 0.02002013 6 0.120120804 0+LB 962,598 0.03123141 4 0.124925636 Any 3,967,456 0.128723768 Various 0.751507001 + Annuity EV
The return is heavily affected by the annuity period; in fact, the top two prizes are the largest part of the equation, with the top prize worth 0.237010095 for a twenty-year annuity period and the second prize worth 0.275781767.
For the house edge, I will provide a few example values I find interesting. Let's take a year to be 365.25 days, which would make the top prize worth $365,250 per year.
- Based on the cash prizes in lieu of the annuity, the game has a 42.341% house edge.
- The minimum 20-year annuity period results in a 36.785% house edge.
- Each additional year added to the annuity period reduces the house edge by 1.282pp.
- The break-even annuity period, where the return of the game is $2, the same as the ticket price, is 48.694 years. I guess this would mean that young, healthy people have an advantage when playing this game.
- The return for the cash prizes is the same as 15.666 years of annuity, so if you win the top prize but won't live longer than that to enjoy it and don't care if your descendants enjoy it, you should take the cash prize .
I just wanted to share my analysis of this game with you all because I didn't see this game on the Wizard of Odds website and only saw a little bit about an older version of the game in past threads. Hope you enjoy, and that I didn't screw anything up!
link to original post
Are you counting the annuity money at full value? You need to discount for time (ie, consider inflation). Money now is worth more than money later (this is how annuities work; you can buy them for a fixed amount). Even if it paid out forever, it would still only have a finite value.
So if you live for 40-60 more years, that money won't be with anywhere near as much by then. Just as an example, according to the first search result when I just checked, $1 in 1985 was worth about the same as $3 today, and that includes some time with historically low inflation (according to the same source, $1 in 1975 was worth about $6 in today's dollars, and $1 in 1970 was worth about $8.33 in today's dollars). So if you are in your 20s, $25k might only buy you what $3k buys you today (ie not much) by the time you get well into your retirement years. And $1000/week might buy you what $500/month would buy you today.
Quote:Lucky for life SOUNDS good, getting set for LIFE until the Lottery goes bankrupt like what happened with the still current Publisher's Clearinghouse Lottery Bankruptcy which left around 10 "For life," Winners in big trouble. Lump sum cash is always the way to go because you're STILL okay if the Lottery goes bankrupt in the future. 💡
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It is almost impossible for state or multi-state lotteries to go bankrupt. The monies are prefunded and invested in US govt. securities backed by the full faith and credit of the US. The entirety of the US government would have to declare bankruptcy and default on its bonds. The PCH was a private entity. I feel bad for those winners. A deal's a deal and PCH welched on that deal.
A lottery winner who chooses an annuity can spread the payments out over X number of years. If he dies, the annuity will be inherited by an heir, who will also have the option to take a lump sum amount. The IRS will want to collect taxes on the full value of the annuity, which seems like a tax nightmare.
Quote: billryanIf I have this correct,...
A lottery winner who chooses an annuity can spread the payments out over X number of years. If he dies, the annuity will be inherited by an heir, who will also have the option to take a lump sum amount. The IRS will want to collect taxes on the full value of the annuity, which seems like a tax nightmare.
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The lottery will pay to whomever claimed the prize and continue payments to the estate until the full prize has been awarded. If the winner claims the annuity then the lottery will pay the annuity. To the best of my knowledge winners (or their heirs) can't decide to change payout mid-stream. You get to choose one time when you claim the prize and that's that so choose wisely.
Winners don't get to set the annuity terms. Annuity terms are already set by the lottery.
Quote: GenoDRPhQuote: billryanIf I have this correct,...
A lottery winner who chooses an annuity can spread the payments out over X number of years. If he dies, the annuity will be inherited by an heir, who will also have the option to take a lump sum amount. The IRS will want to collect taxes on the full value of the annuity, which seems like a tax nightmare.
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The lottery will pay to whomever claimed the prize and continue payments to the estate until the full prize has been awarded. If the winner claims the annuity then the lottery will pay the annuity. To the best of my knowledge winners (or their heirs) can't decide to change payout mid-stream. You get to choose one time when you claim the prize and that's that so choose wisely.
Winners don't get to set the annuity terms. Annuity terms are already set by the lottery.
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I don't believe that is correct. If a lottery winner dies and is owed $50 million over twenty years, the IRS will want estate taxes on the entire $50 million. As the number of people who can afford to pay out of pocket is almost none, there must be a way to convert the annuity into a lump sum. It will vary from state to state,
Quote: billryanQuote: GenoDRPhQuote: billryanIf I have this correct,...
A lottery winner who chooses an annuity can spread the payments out over X number of years. If he dies, the annuity will be inherited by an heir, who will also have the option to take a lump sum amount. The IRS will want to collect taxes on the full value of the annuity, which seems like a tax nightmare.
link to original post
The lottery will pay to whomever claimed the prize and continue payments to the estate until the full prize has been awarded. If the winner claims the annuity then the lottery will pay the annuity. To the best of my knowledge winners (or their heirs) can't decide to change payout mid-stream. You get to choose one time when you claim the prize and that's that so choose wisely.
Winners don't get to set the annuity terms. Annuity terms are already set by the lottery.
link to original post
I don't believe that is correct. If a lottery winner dies and is owed $50 million over twenty years, the IRS will want estate taxes on the entire $50 million. As the number of people who can afford to pay out of pocket is almost none, there must be a way to convert the annuity into a lump sum. It will vary from state to state,
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Surely you remember the TV jingles. Need cash now? JG Wentworth
Quote: SkinnyTony
Are you counting the annuity money at full value? You need to discount for time (ie, consider inflation). Money now is worth more than money later (this is how annuities work; you can buy them for a fixed amount). Even if it paid out forever, it would still only have a finite value.
So if you live for 40-60 more years, that money won't be with anywhere near as much by then. Just as an example, according to the first search result when I just checked, $1 in 1985 was worth about the same as $3 today, and that includes some time with historically low inflation (according to the same source, $1 in 1975 was worth about $6 in today's dollars, and $1 in 1970 was worth about $8.33 in today's dollars). So if you are in your 20s, $25k might only buy you what $3k buys you today (ie not much) by the time you get well into your retirement years. And $1000/week might buy you what $500/month would buy you today.
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My calculations were made without considering inflation although that makes sense that it will become much less valuable with that in mind
Here are some top of reasons why lottery winners who take the lump sum end up broke within a year or a few years.
They miscalculate taxes big time. They THINK the 1.5 BILLION advertised is the money they will get in a lump sum, but that is if you choose an annuity, and the annuity is paid over 20-30 YEARS, and yes, you pay taxes on every single annuity check you get. In a lump sum, total taxes are around a whopping SIXTY SIX PERCENT! 😱😳😱😳 That's FOUR SHOCKED faces for you there. So that 1.5 BILLION becomes only about 400 MILLION after taxes! 😱😳😱😳 FOUR SHOCKED faces for you again!
The lottery winners take the 400 million and QUIT their jobs. Quitting your job means that they no longer have INCOME coming anymore, they only have money going OUT.
They buy expensive stuff like houses, boats, and cars, thinking the money they used to buy the houses, boats, and cars is a one and done deal, having no idea they have to pay property taxes and maintenance on the expensive things they buy.
They constantly give money to people who harass them for it. They are 30 years old and their 50 year old Cousin who saw them ONCE THIRTY YEARS AGO as a BABY now is begging them for $50,000 because they are behind on their bills and because they are "Family," . So the Winner gives this Cousin $50,000.
Their 50 year old Mother and Father feel resentful that their 50 year old Cousin who saw the winner once as a baby 30 years ago got $50,000 and they demand 20 million each for being the parents and raising the winner. So the Winner gives Mom and Dad 20 million each.
The Winner goes on expensive vacations around the world, flying first class both ways, buys designer clothes, eats expensive food at five star Michelin star restaurants, etc. They buy a LOT of stuff at top dollar prices.
They go to Casinos and gamble hard. (A Woman who won roughly 13 million before taxes went to the casino and gambled away the money and ended up being imprisoned for power of attorney abuse when she stole her family's money they entrusted with her! 😱😳😱😳 FOUR SHOCKED faces for you again.)
They get harassed with charity requests, so they end up giving $5 million to various charities.
They end up getting sued in courts. People they accidentally literally bumped into 10 years ago are suing them for assault.
They have child support and alimony payments, so they have to pay child support and alimony.
They are putting money in startup businesses that fail. They are putting money in weird ventures that make zero sense like the guy who invested in cockroach racing or something extremely weird like that. 😐 They put money in weird stocks.
They don't put money in savings or irrevocable trust funds.
That 400 million can be gone REALLY fast within a year or a few years. 💡
My friend Lance, who used to handle my money, has worked with over a dozen lottery winners. He must have gotten very lucky as not one of them went broke while he was working with them.
Quote: NathanA LOT of people choose the lump sum because they feel the lump sum puts THEM in control of the money and not anything else. The problem is that a LOT of people who choose the lump sum end up broke within a few years. A guy won the lottery and said to his boss with a BIG smile, "I won the lottery. I'm a multimillionaire now, I don't need this job anymore, I quit, bye!" And just one year later, his BIG smile had turned into a BIG frown and he was begging for his old job back as he had become broke one year later.
Here are some top of reasons why lottery winners who take the lump sum end up broke within a year or a few years.
They miscalculate taxes big time. They THINK the 1.5 BILLION advertised is the money they will get in a lump sum, but that is if you choose an annuity, and the annuity is paid over 20-30 YEARS, and yes, you pay taxes on every single annuity check you get. In a lump sum, total taxes are around a whopping SIXTY SIX PERCENT! 😱😳😱😳 That's FOUR SHOCKED faces for you there. So that 1.5 BILLION becomes only about 400 MILLION after taxes! 😱😳😱😳 FOUR SHOCKED faces for you again!
The lottery winners take the 400 million and QUIT their jobs. Quitting your job means that they no longer have INCOME coming anymore, they only have money going OUT.
They buy expensive stuff like houses, boats, and cars, thinking the money they used to buy the houses, boats, and cars is a one and done deal, having no idea they have to pay property taxes and maintenance on the expensive things they buy.
They constantly give money to people who harass them for it. They are 30 years old and their 50 year old Cousin who saw them ONCE THIRTY YEARS AGO as a BABY now is begging them for $50,000 because they are behind on their bills and because they are "Family," . So the Winner gives this Cousin $50,000.
Their 50 year old Mother and Father feel resentful that their 50 year old Cousin who saw the winner once as a baby 30 years ago got $50,000 and they demand 20 million each for being the parents and raising the winner. So the Winner gives Mom and Dad 20 million each.
The Winner goes on expensive vacations around the world, flying first class both ways, buys designer clothes, eats expensive food at five star Michelin star restaurants, etc. They buy a LOT of stuff at top dollar prices.
They go to Casinos and gamble hard. (A Woman who won roughly 13 million before taxes went to the casino and gambled away the money and ended up being imprisoned for power of attorney abuse when she stole her family's money they entrusted with her! 😱😳😱😳 FOUR SHOCKED faces for you again.)
They get harassed with charity requests, so they end up giving $5 million to various charities.
They end up getting sued in courts. People they accidentally literally bumped into 10 years ago are suing them for assault.
They have child support and alimony payments, so they have to pay child support and alimony.
They are putting money in startup businesses that fail. They are putting money in weird ventures that make zero sense like the guy who invested in cockroach racing or something extremely weird like that. 😐 They put money in weird stocks.
They don't put money in savings or irrevocable trust funds.
That 400 million can be gone REALLY fast within a year or a few years. 💡
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Tell no one you won. Have lawyer create a trust and give the trust the winning ticket. Have said lawyer/trustee claim the prize. Beneficiaries, including you, remain anonymous.
Quote: GenoDRPhQuote: NathanA LOT of people choose the lump sum because they feel the lump sum puts THEM in control of the money and not anything else. The problem is that a LOT of people who choose the lump sum end up broke within a few years. A guy won the lottery and said to his boss with a BIG smile, "I won the lottery. I'm a multimillionaire now, I don't need this job anymore, I quit, bye!" And just one year later, his BIG smile had turned into a BIG frown and he was begging for his old job back as he had become broke one year later.
Here are some top of reasons why lottery winners who take the lump sum end up broke within a year or a few years.
They miscalculate taxes big time. They THINK the 1.5 BILLION advertised is the money they will get in a lump sum, but that is if you choose an annuity, and the annuity is paid over 20-30 YEARS, and yes, you pay taxes on every single annuity check you get. In a lump sum, total taxes are around a whopping SIXTY SIX PERCENT! 😱😳😱😳 That's FOUR SHOCKED faces for you there. So that 1.5 BILLION becomes only about 400 MILLION after taxes! 😱😳😱😳 FOUR SHOCKED faces for you again!
The lottery winners take the 400 million and QUIT their jobs. Quitting your job means that they no longer have INCOME coming anymore, they only have money going OUT.
They buy expensive stuff like houses, boats, and cars, thinking the money they used to buy the houses, boats, and cars is a one and done deal, having no idea they have to pay property taxes and maintenance on the expensive things they buy.
They constantly give money to people who harass them for it. They are 30 years old and their 50 year old Cousin who saw them ONCE THIRTY YEARS AGO as a BABY now is begging them for $50,000 because they are behind on their bills and because they are "Family," . So the Winner gives this Cousin $50,000.
Their 50 year old Mother and Father feel resentful that their 50 year old Cousin who saw the winner once as a baby 30 years ago got $50,000 and they demand 20 million each for being the parents and raising the winner. So the Winner gives Mom and Dad 20 million each.
The Winner goes on expensive vacations around the world, flying first class both ways, buys designer clothes, eats expensive food at five star Michelin star restaurants, etc. They buy a LOT of stuff at top dollar prices.
They go to Casinos and gamble hard. (A Woman who won roughly 13 million before taxes went to the casino and gambled away the money and ended up being imprisoned for power of attorney abuse when she stole her family's money they entrusted with her! 😱😳😱😳 FOUR SHOCKED faces for you again.)
They get harassed with charity requests, so they end up giving $5 million to various charities.
They end up getting sued in courts. People they accidentally literally bumped into 10 years ago are suing them for assault.
They have child support and alimony payments, so they have to pay child support and alimony.
They are putting money in startup businesses that fail. They are putting money in weird ventures that make zero sense like the guy who invested in cockroach racing or something extremely weird like that. 😐 They put money in weird stocks.
They don't put money in savings or irrevocable trust funds.
That 400 million can be gone REALLY fast within a year or a few years. 💡
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Tell no one you won. Have lawyer create a trust and give the trust the winning ticket. Have said lawyer/trustee claim the prize. Beneficiaries, including you, remain anonymous.
link to original post
On a lottery Website, I questioned why the Lottery didn't get some random Lottery Employee to pose as the lottery winner at the press conference while the real Lottery Winner enjoys their Millions in peace and then the Lottery Officials escort the Lottery Employee to their house to prevent people from trying to mug the Lottery Employee? Posters responded something like,"Getting a Lottery Employee who is NOT the Lottery Winner to pose as the Lottery Winner would be unethical and immoral. "💡
