Powerball hits $1 Billion
A year ago, the cash value option was somewhere near 75% of the advertised annuitized amount.
I can quickly see where, if it rolls a couple more times and we have another interest rate hike this week, they are going to advertise the jackpot as a world record but the cash value won't be anywhere near the highest for a while yet.
Quote: ChumpChangeI don't have 20 years to wait around to get paid that much if I win. I don't believe the banks do either. I'll have 11,000 pounds of $100 bills to put into storage. That'd be close to 50,000 stacks of 100X $100 bills. Here, take one.
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Should you decide to store it underground, please share pictures and/or stories.
I think this could be the most entertaining money pit we've had in a while.
If you bought two tickets with the same numbers and you are the sole winner could you get a tax advantage by cashing one of the tickets January 1?
However, you could invest it in T-bills and earn more interest than you would get with the tax break pretty quickly, I would think.
Gene
Quote: rxwineQuestion for anyone…
If you bought two tickets with the same numbers and you are the sole winner could you get a tax advantage by cashing one of the tickets January 1?
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Absolutely no way to be sure. THe tax rate for top earners ‘might’ be different next year due to a likely change in house /senate.
Quote: rsactuaryI guess, yes, a slight advantage? Because if you cashed both in the same year, the entire second ticket would be taxed at the highest bracket, whereas if you waited a small portion of it would be taxed at the lower levels.
However, you could invest it in T-bills and earn more interest than you would get with the tax break pretty quickly, I would think.
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I agree with this.
Not that anyone asked, but my lottery ticket sales calculator projects 1.3 winners in Monday's drawing and a 72.76% of at least one winner.
At the risk having to serve another suspension on this topic, I hope there is no winner tomorrow.
So e^(-1.3) chance of no winnersQuote: WizardNot that anyone asked, but my lottery ticket sales calculator projects 1.3 winners in Monday's drawing and a 72.76% of at least one winner
Quote: calwatchGenerally speaking for high jackpots like this you want to take the cash, since you can probably invest better than the 100% T-Bills that the lottery is putting your annuity payments in, but for lower jackpots like the ordinary $38 million that California is offering, taking the annuity may be the best bet, tax speaking, since you get to have $539,000+ a year (inflation adjusted) shielded from the highest rate.
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Except the dollars you will be getting after the first year are subject to erosion in value because of inflation. If you can invest the total windfall at a rate that beats inflation that would lead you to do better with the lump sum.
If you are able to move to a no tax state that changes things again.
Quote: Ace2So e^(-1.3) chance of no winners
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That's a fact, Jack.
Quote: billryanI'd be surprised if the state you won it in would allow you to avoid taxes by moving. They'd argue you won it in NY and owe taxes on it in NY. I could be completely off base as I have no personal experience in it. You could move, but that doesn't change where the money was won.
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This is a problem I would like to have.
Quote: billryanI'd be surprised if the state you won it in would allow you to avoid taxes by moving. They'd argue you won it in NY and owe taxes on it in NY. I could be completely off base as I have no personal experience in it. You could move, but that doesn't change where the money was won.
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If you take the annuity you would definitely claim the annual payment in the state you are residing when you collect it. It is not income until you get the annual distribution.
Quote: DRichQuote: billryanI'd be surprised if the state you won it in would allow you to avoid taxes by moving. They'd argue you won it in NY and owe taxes on it in NY. I could be completely off base as I have no personal experience in it. You could move, but that doesn't change where the money was won.
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If you take the annuity you would definitely claim the annual payment in the state you are residing when you collect it. It is not income until you get the annual distribution.
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I'm not so sure about that. It appears to me that if you win a NY State lottery jackpot, that money goes into an annuity in NY and is subject to NY state taxes, no matter where they send the check. Multi-state lotteries might work differently. Perhaps I'm reading it wrong, and I'd certainly consult an expert on lotteries before doing anything else.
Quote: BrickapotamusQuote: billryanI'd be surprised if the state you won it in would allow you to avoid taxes by moving. They'd argue you won it in NY and owe taxes on it in NY. I could be completely off base as I have no personal experience in it. You could move, but that doesn't change where the money was won.
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This is a problem I would like to have.
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No kidding...LOL...if I won a billion you could tax me at 99% and I'd sign the check with a smile on my face, retire immediately, and live the rest of my live in luxury.
By the way, how are the lines at the lotto store in Primm doing? 🤪
PowerBall is run by a multi-state lottery commission. That may change things.Quote: billryanI'm not so sure about that. It appears to me that if you win a NY State lottery jackpot…
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Quote: DJTeddyBearToday I walked up to the lottery salesperson at my local 7-Eleven, put down $10 and said “I’d like to set this $10 on fire…” Seconds later I had my PowerBall ticket. 👍
By the way, how are the lines at the lotto store in Primm doing? 🤪PowerBall is run by a multi-state lottery commission. That may change things.Quote: billryanI'm not so sure about that. It appears to me that if you win a NY State lottery jackpot…
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Absolutely. That is why you need an expert before you present your ticket
Quote: DJTeddyBearPowerBall is run by a multi-state lottery commission. That may change things.
Irrelevant. The administer the drawing, but you are buying the ticket from the state you are in and their rules and tax laws apply. But, I am not a lawyer, so make sure you get one.
Quote: rsactuaryQuote: DJTeddyBearPowerBall is run by a multi-state lottery commission. That may change things.
Irrelevant. The administer the drawing, but you are buying the ticket from the state you are in and their rules and tax laws apply. But, I am not a lawyer, so make sure you get one.
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Link I posted earlier contains information on what state taxes lottery winnings and what states don't and how out-of-state winners are handled.
Gene
10 tickets had the front 5, but not the power ball. 3 of those 10 were bought with the multiplier.
Quote: Wizard
I agree with this.
Not that anyone asked, but my lottery ticket sales calculator projects 1.3 winners in Monday's drawing and a 72.76% of at least one winner.
At the risk having to serve another suspension on this topic, I hope there is no winner tomorrow.
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I'm hoping for a winner as soon as possible as they will sell fewer tickets for the next x months if someone wins.
Quote: Mission146I'm hoping for a winner as soon as possible as they will sell fewer tickets for the next x months if someone wins.
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I have the opposite opinion. I love to see others donating money to the government.
Quote: WizardQuote: Mission146I'm hoping for a winner as soon as possible as they will sell fewer tickets for the next x months if someone wins.
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I have the opposite opinion. I love to see others donating money to the government.
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It's the most successful tax system ever invented. No one is required to even pay it, yet it collects regularly.
I'm with Mission. I don't want to have to wait in line behind all those lottery degens just to buy my 40 of OE 800! ;)Quote: WizardQuote: Mission146I'm hoping for a winner as soon as possible as they will sell fewer tickets for the next x months if someone wins.
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I have the opposite opinion. I love to see others donating money to the government.
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Quote: JoemanI'm with Mission. I don't want to have to wait in line behind all those lottery degens just to buy my 40 of OE 800! ;)
Do they still make Old English 800? I don't think I have seen it in 20 years.
Quote: DRichQuote: JoemanI'm with Mission. I don't want to have to wait in line behind all those lottery degens just to buy my 40 of OE 800! ;)
Do they still make Old English 800? I don't think I have seen it in 20 years.
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You need to expand your social circles.
Quote: DRichQuote: JoemanI'm with Mission. I don't want to have to wait in line behind all those lottery degens just to buy my 40 of OE 800! ;)
Do they still make Old English 800? I don't think I have seen it in 20 years.
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Pretty sure I saw Olde English last week at a fine convenience retailer.
I didn't notice if they had "fo'ties" in addition to the "tallboys".
but
"In 2010, the 3.2% ABW version of Olde English was rated one of "the worst beer in the world" by RateBeer.com,"
Let's get this thread back on track. How many 40's of Old English 800 can I buy when I win the Powerball?
Quote: rxwineIt's the most successful tax system ever invented. No one is required to even pay it, yet it collects regularly.
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You're absolutely right.
Quote: DRichLet's get this thread back on track. How many 40's of Old English 800 can I buy when I win the Powerball?
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This is a more challenging question than it appears.
If you were to directly convert all your post-tax lump sum winnings to fo'ties, it would appear that the answer is about 100 million.
The problem is that I don't think the brewery produces that much annually (I haven't been on the tour, so I'm guessing that maximum annual output is closer to 10% of that).
I think that retailers know better than to stock that much, anyway.
Quote: DieterQuote: DRichLet's get this thread back on track. How many 40's of Old English 800 can I buy when I win the Powerball?
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This is a more challenging question than it appears.
If you were to directly convert all your post-tax lump sum winnings to fo'ties, it would appear that the answer is about 100 million.
The problem is that I don't think the brewery produces that much annually (I haven't been on the tour, so I'm guessing that maximum annual output is closer to 10% of that).
I think that retailers know better than to stock that much, anyway.
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What if I take the winnings in the annuity?
Gene
While I will lose (I guess I have a 8ish% -I think- chance of winning at least 2 dollars, math is probably wrong that is off of my head), I have a miniscule chance of winning a large jackpot. If you don't buy tickets your chance of winning is zero, if you do buy tickets your chance is winning is close to zero, but infinitely above zero. I essentially flushed eight dollars down the toilet, but since the jackpot will probably not be this big again for many years if ever, I do not feel too bad with myself. The argument that I would be better off just putting that extra eight dollars into my investment account is valid, and if somebody paid eight dollars a day on lottery tickets it would be even more valid. But, a one-time payment of eight dollars so that I can wake up tomorrow and not see an email confirmation that I won will probably be great mental training to never spend money on a lottery again.
It's like playing a slot machine occasionally you will lose, and you will feel crappy losing however much on the machine, but it will train you not to like slot machines, and you increased your chances of hitting a massive jackpot exponentially (still close to zero, but infinitely above zero).
I still hold my longstanding opinion that the lottery is a scam which should not be played, and am annoyed when people buy physical tickets (especially when you are behind them at a gas station and they are picking tickets one by one like its some kind of science for some reason). But, I am just being honest about my own hypocrisy with the current jackpot.
Quote: GandlerMy view on the lottery is similar as slot machines, terrible way to gamble (and even less fun), however, when the prize reaches a certain threshold, it can be worth trying (not advice, just personal views). I actually bought four lottery (Powerball) tickets today, I think this is the first time I have directly purchased tickets for myself (I did participate in some office pool some years ago I think 2017 where I contributed a few dollars along with everyone else, we won nothing, at least according to the person who was collecting the money and buying the tickets, it may have been just a donation to him for all I know, I do not follow the numbers).
While I will lose (I guess I have a 8ish% -I think- chance of winning at least 2 dollars, math is probably wrong that is off of my head), I have a miniscule chance of winning a large jackpot. If you don't buy tickets your chance of winning is zero, if you do buy tickets your chance is winning is close to zero, but infinitely above zero. I essentially flushed eight dollars down the toilet, but since the jackpot will probably not be this big again for many years if ever, I do not feel too bad with myself. The argument that I would be better off just putting that extra eight dollars into my investment account is valid, and if somebody paid eight dollars a day on lottery tickets it would be even more valid. But, a one-time payment of eight dollars so that I can wake up tomorrow and not see an email confirmation that I won will probably be great mental training to never spend money on a lottery again.
It's like playing a slot machine occasionally you will lose, and you will feel crappy losing however much on the machine, but it will train you not to like slot machines, and you increased your chances of hitting a massive jackpot exponentially (still close to zero, but infinitely above zero).
I still hold my longstanding opinion that the lottery is a scam which should not be played, and am annoyed when people buy physical tickets (especially when you are behind them at a gas station and they are picking tickets one by one like its some kind of science for some reason). But, I am just being honest about my own hypocrisy with the current jackpot.
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When the jackpot gets this high, I’ll typically purchase 1 ticket to take my chances from zero to nearly zero.
I’ve never understood the ire much of this forum has against the lottery vs casino games. I get that the house edge is abysmal, but the amount wagered by the typical lottery player is orders of magnitude lower than the typical casino player. The same posters who love black chip trip reports act like buying a $3 lottery ticket is the stupidest thing a recreational gambler could do.
In PA, I haven’t seen retailers selling tickets from behind the counter in years. It’s all self-serve kiosks.
Quote: GenoDRPhQuote: DieterQuote: DRichLet's get this thread back on track. How many 40's of Old English 800 can I buy when I win the Powerball?
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This is a more challenging question than it appears.
If you were to directly convert all your post-tax lump sum winnings to fo'ties, it would appear that the answer is about 100 million.
The problem is that I don't think the brewery produces that much annually (I haven't been on the tour, so I'm guessing that maximum annual output is closer to 10% of that).
I think that retailers know better than to stock that much, anyway.
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What if I take the winnings in the annuity?
Gene
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I do not believe you will experience any constraints in the total supply chain, only in your local area.
If my ciphering doesn't fail me, after around 20000 fo'ties on the first day, it won't be an issue. (This is about one full truckload - again, if we trust my figuring. I won't feel bad if you recalculate.)
Unrelated:
I encountered a Powerball "ploppy" today, investing $6 into two winning tickets (instead of fo'ties).
I know she was not a savvy player, because I had to explain that while the jackpot was the same on both sides of the state line, she would have to redeem it in the purchase state.
I think I forgot to wish her luck. Hope she wins anyway.
Quote: gamerfreak
I’ve never understood the ire much of this forum has against the lottery vs casino games. I get that the house edge is abysmal, but the amount wagered by the typical lottery player is orders of magnitude lower than the typical casino player. The same posters who love black chip trip reports act like buying a $3 lottery ticket is the stupidest thing a recreational gambler could do.
In PA, I haven’t seen retailers selling tickets from behind the counter in years. It’s all self-serve kiosks.
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..
What I do not get is how many people at the casino buy state lottery tickets! I can see a small case for if you play the number anyhow and are there you are just buying a ticket, But scratch-offs? Why hump all the way to the casino to buy what you can at Sheetz?
To the $3 ticket I calculate the odds of SHIB hitting a few pennies to be higher so would rather drop my cash on that maybe make a few million than wast it on a lottery ticket But keep buying them, people. The government needs your money.
I'm pretty sure a bunch of magicians familiar with tricks and illusions could come up with a lottery machine that would look and act real but deliver whatever balls they wanted. Many are even good at tricks which let people examine something and still not see the deception which is even better.
That would hardly be the only obstacle, but just the first.
Of course, one might completely replicate the lottery drawing room, intercept the signal, kidnap the employees, Mission Impossible style... etc., etc,
speculation, Just for fun, just for fun Don't come for me FBI.
Quote: billryanIn my view, throwing $5 on lotto when the jackpot hits a huge amount is silly. "Investing "$30 a week in lotto is stupid.
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I haven’t bought a ticket in decades. I’m sure my wife buys them every now and then. I think buying ONE ticket is +EV for me, as the dream it allows is worth more than the few dollars it costs. Any additional tickets adds no EV.
I sometimes make clearly -EV bets when golfing. I’ll bet that me and my high handicap friends all par the easiest hole. I’m around 60-70 %. The others maybe 25%. But I’ll take 10-1 even though 20-1 is closer to fair odds (two other players). The dollar I usually lose is expected. The rare time I win $10 is a boatload of fun. (Last round the other two parred it and I choked….!)
Quote: SOOPOOQuote: billryanIn my view, throwing $5 on lotto when the jackpot hits a huge amount is silly. "Investing "$30 a week in lotto is stupid.
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I haven’t bought a ticket in decades. I’m sure my wife buys them every now and then. I think buying ONE ticket is +EV for me, as the dream it allows is worth more than the few dollars it costs. Any additional tickets adds no EV.
I sometimes make clearly -EV bets when golfing. I’ll bet that me and my high handicap friends all par the easiest hole. I’m around 60-70 %. The others maybe 25%. But I’ll take 10-1 even though 20-1 is closer to fair odds (two other players). The dollar I usually lose is expected. The rare time I win $10 is a boatload of fun. (Last round the other two parred it and I choked….!)
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There's a proverb:
"If you never knowingly wasted a few dollars, then you are without sin.
If not, go and sin some more."
.something like that.
Quote: gamerfreak
When the jackpot gets this high, I’ll typically purchase 1 ticket to take my chances from zero to nearly zero.
I’ve never understood the ire much of this forum has against the lottery vs casino games. I get that the house edge is abysmal, but the amount wagered by the typical lottery player is orders of magnitude lower than the typical casino player. The same posters who love black chip trip reports act like buying a $3 lottery ticket is the stupidest thing a recreational gambler could do.
In PA, I haven’t seen retailers selling tickets from behind the counter in years. It’s all self-serve kiosks.
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(Quote clipped to remove quote-within-quote)
What side of the state? You can get them from the kiosk or behind the counter (most places) in the Pittsburgh area.
Anyway, I'm content with my 0.000000000000000000000000% probability of winning this jackpot due to my not having a ticket.
The difference for me is that the lotteries are run by the very Government that decides what gambling the state in question is or is not permitted to have. If there is to be a lottery, then I believe the following should be done:
1.) Make all other forms of gambling legal in the state.
2.) Allow for competing lotteries both within and multi-state.
I’m having more fun yesterday and today daydreaming about spending 9 figures of cash than playing BJ for 30 min.
I don’t see why one of these is more silly than another.
