PSA: Megamillions won by some lucky people in MD, Kansas, Illiinois

[vi edit]

dats a lotta dimp

Half a billion lotto hit. Wow.

 

[LookBehindYou]

damn. may have to finally get a ticket.

 

[Saint Nick]

Yeah gonna have to go buy a ticket. Shouldn't have waited for lotto fever but I'll play a couple times.

 

[Powermoloch]

all of 'em will be invested into bonds luls

 

[highland145]

damn. may have to finally get a ticket.

The stupid tax. Sooner or later, you want to pay it.

$2 in the last week for me. Looks like it'll be $3 by Friday.

 

[Atomic Playboy]

I suppose I'll need to buy my first lottery ticket. Might as well take a shot for the record.

 

[mnewsham]

ESTIMATED JACKPOT $500 MILLION

Just checked megamillions website looks like it's gonna be a big drawing.

 

[Bird222]

Rough calculation puts the rate at 1.3%.

Do you have a manual formula for this?

 

[thecrecarc]

For those wondering about the payout here is a good chart showing much money one would get sorted by state

 

[IAteYourMother]

what sort of jackpot payout is required for it to almost be worth it from an EV standpoint?

 

[mnewsham]

what sort of jackpot payout is required for it to almost be worth it from an EV standpoint?

well odds of winning the jackpot are like 175 million to 1 or something like that, so right now with a payout of about 250 million cash (for most states) it would be worth it right now to do it. now there is also a chance someone else wins and you just blew 175 million bucks o_o

 

[terry107]

Do you have a manual formula for this?

FV=PV(1+i)^n; solve for i=(FV/PV)^(1/n)-1 where FV=future value (476 million), PV=present value (341 million) and n=number of periods (26). Comes out to 1.29%.

 

[mnewsham]

FV=PV(1+i)^n; solve for i=(FV/PV)^(1/n)-1 where FV=future value (476 million), PV=present value (341 million) and n=number of periods (26). Comes out to 1.29%.

current value is at 359 million for cash isn't it? or am i reading this wrong?

 

[terry107]

current value is at 359 million for cash isn't it? or am i reading this wrong?

Looks like they revised the figures. If you use $500 million jackpot/$359 million payout, it's still roughly 1.3%.

 

[SandEagle]

if someone won this, can they stay anonymous? 500m is crazy. i wouldn't know what to do with this kind of money.

 

[SillyOReilly]

if someone won this, can they stay anonymous? 500m is crazy. i wouldn't know what to do with this kind of money.

You wouldn't have to deal with 500 million. ^_^

 

[Red Storm]

I'd definitely take the annual pay.

 

[rh71]

Bought a ticket yesterday. $1 is worth the price to fantasize about having that much money.

completely agree... if I could buy a ticket online, I would do it. Since I can't, I don't.

And yeah, $19mil a year is plenty for me to take the annual payments vs. lump sum. Actually, no. I want it all because anything can happen.

 

[mnewsham]

completely agree... if I could buy a ticket online, I would do it. Since I can't, I don't.

And yeah, $19mil a year is plenty for me to take the annual payments vs. lump sum. Actually, no. I want it all because anything can happen.

after 25% fed it is 14million so if you are in a state with no state lotto tax than that is the max you would get. if you live in a state with lotto tax then you bring even less.

 

[conehead433]

Before I collected I would move to a state with no tax on lottery winnings like California. Of course you would still be liable for some taxes owed to the state you were living in for part of the year that you collected. Put the money in a living trust so that you only owe taxes on what you collected that year. I would be paying $21,540,000 here in Georgia if I collected it all here. I could do a lot of good with that much money. Definitely would need a CPA and income tax layer.

 

[rh71]

after 25% fed it is 14million so if you are in a state with no state lotto tax than that is the max you would get. if you live in a state with lotto tax then you bring even less.

I was thinking what I would do in that year that would exhaust me of all the funds... and I don't think I would use more than $5mil a year so anything above that # is fine. At least that would be a way to control my spending habits. BUT, no... I don't want to leave it in anyone else's hands either.

 

[Red Storm]

after 25% fed it is 14million so if you are in a state with no state lotto tax than that is the max you would get. if you live in a state with lotto tax then you bring even less.

Still better than giving up over $100,000,000 due to impatience.

 

[darkxshade]

If I won all that money... I'd make sure I'd get married first before I cashed it in.

 

[Bird222]

FV=PV(1+i)^n; solve for i=(FV/PV)^(1/n)-1 where FV=future value (476 million), PV=present value (341 million) and n=number of periods (26). Comes out to 1.29%.

We need to use a formula for present value of 'annuity due' for 26 payments of $19,230,769 (which is $500,000,000). The rate seems to be about 2.86% which is probably close to the rate of inflation which would make some sense.

 

[mnewsham]

Still better than giving up over $100,000,000 due to impatience.

Idk, with wise investing you can turn that into more money faster.