Powerball

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Igor
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Re: Powerball

Postby Igor » Sat Jan 09, 2016 12:49 pm

Ducatista wrote:A couple great quotes in that link:

"I can assure you," he said, "there is no office pool for the lottery at the American Statistical Association."


That is just dumb. I have a math degree, and understand the probabilities. But there is the matter of what you are going to do with that 5 dollars if you don't play the lottery. If it is feed your children or pay rent, then it is a bad purchase. For others, spending 5 bucks is just a drop in their entertainment bucket.

Ducatista
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Re: Powerball

Postby Ducatista » Sat Jan 09, 2016 1:24 pm

bdog wrote:
Ducatista wrote:...but somehow being left out seems worse.

Being left out I can handle, but being the only one LEFT at work I could not.

ExACTly. Though I'm one of those nerds who wouldn't quit right away. I'm working on some projects I'd definitely want to finish before leaving. I'd likely do so from home, in my jammies, but I'd finish them all the same.

Ducatista
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Re: Powerball

Postby Ducatista » Sat Jan 09, 2016 1:30 pm

Igor wrote:That is just dumb.

You think so?   *shrug*   My reaction was an appreciative "Ha!"

pjbogart
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Re: Powerball

Postby pjbogart » Sat Jan 09, 2016 7:49 pm

Picked up one $2 ticket at Speedway. The idiot ahead of me was crowing about how he'd give the clerk a cool million dollars if he won and the clerk just rolled his eyes as the guy walked away. I told the clerk, "you look like you could use some honesty. If I win, I ain't givin' you shit."

The chuckle from the clerks and the people in line was probably worth more than $2, so I guess I already won.

PaleoLiberal
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Re: Powerball

Postby PaleoLiberal » Sat Jan 09, 2016 11:21 pm

Always get in the office pool.
Bad politics if they lose,
Horrible luck for you if they win.

One guy I work with used to work at a place where a group on the other side of the floor won a lotto, got about $1 million each. Next day half of them quit. Within six months, nobody was left.

Igor
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Re: Powerball

Postby Igor » Sun Jan 10, 2016 12:03 am

Ducatista wrote:ExACTly. Though I'm one of those nerds who wouldn't quit right away. I'm working on some projects I'd definitely want to finish before leaving.


Same here - at least 18 months until retirement age.

Michael Patrick
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Re: Powerball

Postby Michael Patrick » Sun Jan 10, 2016 5:18 am

No winners last night. Billion dollars, here we come....

Beaver
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Re: Powerball

Postby Beaver » Mon Jan 11, 2016 3:13 pm

If you win the big one, sounds like choosing the long-term annuity is better than the lump sum. But what if you die before the 29 years are up? Does it go to your heirs?

Powerball's big bait and switch
Jackpot would really only be $900 million if winner opts for 29-year payout
http://www.channel3000.com/money/powerb ... h/37350846

"The longer-term payout is a larger sum because it includes the interest that accumulates from the prize money that is invested over the 29-year period. But out of the 102 Powerball winners in the last seven years, only one chose the larger, but deferred, jackpot. That was Vinh Nguyen, who bought a winning Powerball ticket in September 2014 in San Mateo, Calif., and took the $228 million annuity prize. Another big advantage of the annuity versus the lump sum -- besides the fact that you'll collect millions of dollars more -- is that you can't blow all the winnings as fast."

Henry Vilas
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Re: Powerball

Postby Henry Vilas » Mon Jan 11, 2016 3:14 pm

It depends on factors such as the age of the winner. I probably won't be around for another 29 years.

Beaver
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Re: Powerball

Postby Beaver » Tue Jan 12, 2016 2:33 pm

Powerball is a national disgrace: The lottery exploits despair, and state governments should be ashamed
http://www.salon.com/2016/01/12/powerba ... e_ashamed/

Henry Vilas
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Re: Powerball

Postby Henry Vilas » Tue Jan 12, 2016 3:09 pm

I suggest you don't buy any lottery tickets.

willystresident
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Re: Powerball

Postby willystresident » Tue Jan 12, 2016 4:53 pm

If any of y'all do win, don't do the annuity. Putting the $635 million after tax cash value in the stock market with the historical average annualized return of +/- 6% would give you about $3.5 billion of the same 30 year annuity period. If you were worried about spending it all, put it in a trust that requires consent of the trustees for large disbursements.

Beaver
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Re: Powerball

Postby Beaver » Wed Jan 13, 2016 1:35 pm

The 10 dumbest things you can do if you win the $1.5 billion Powerball
http://finance.yahoo.com/news/10-dumbes ... 0471.html#

4. Not considering the annuity option. "Research shows nearly everyone takes the lump sum, but that may not be the best move. In fact, the annuity may be a much better option."

9. Thinking you've actually won $1.5 billion. "You haven't. Don't get stuck on the headline number. In behavioral finance, this is called anchoring, and it can cause you to think you have a lot more money than you actually do. Remember, the lump sum is about 60% of that number and then taxes will take another 50%."

Henry Vilas wrote:It depends on factors such as the age of the winner. I probably won't be around for another 29 years.

Found it.

http://www.powerball.com/pb_contact.asp
WHAT HAPPENS IF AN ANNUITY PRIZE WINNER DIES?
The estate will handle the lottery prize. A lottery annuity prize is just like any other asset. You can pass any remaining annuity payments on to your heirs or to anyone else. The Powerball game will even cash out an annuity prize for an estate. This may make it easier for the estate to distribute the prize. It also may be necessary to cash out the annuity to pay Federal estate taxes. We will sell some or all of the securities at competitive bid or will even just transfer the securities to the estate. We do not charge a fee of any kind. We often hear people complain that the jackpot should not go back to "the state" when a winner dies. It does not. I think that this misunderstanding may come from the response that the prize "goes to the Estate" and some people hear "goes to the State."

Dust Mite Rodeo
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Re: Powerball

Postby Dust Mite Rodeo » Wed Jan 13, 2016 2:16 pm

So I can designate my post-mortem annuity payments to go to the Excessively Ardent Atheists Against the Baby Jesus Foundation?

I'm in.

O.J.
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Re: Powerball

Postby O.J. » Wed Jan 13, 2016 4:53 pm

Beaver wrote:4. Not considering the annuity option. "Research shows nearly everyone takes the lump sum, but that may not be the best move. In fact, the annuity may be a much better option."


The annuity is a great idea if you don't believe in compounding interest, or if you'd like to make a bet on tax rates going down in the future.


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