Mega Millions Jackpot-270 million

[stevew]

Mega Millions is hands down, the biggest jackpot game in the country! With more people playing than any other multi-state game in the U.S., jackpots roll to higher levels at a faster rate.

You can play Mega Millions in California, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Texas, Virginia and Washington.

I'm in for 4 tickets, anybody else playing tonight? I could definitely use the 164 million lump sum cash payout.

[MikeVic]

Can you buy me one.

[cartman]

Originally Posted by stevew

I'm in for 4 tickets, anybody else playing tonight? I could definitely use the 164 million lump sum cash payout.

Meh. After taxes that's only $100 to $115 million. Not enough to get worked up about.

[Logan]

I spent $5 on tickets for Tuesday. I'm trying to figure out if the $164 million is worth going outside right now.

[Kodos]

You have a better chance of slipping in the snow and braining yourself than you have of winning.

[Logan]

I think I actually have a better chance of a ticket appearing in my hand at the count of 3 than I have of winning.

[wade moore]

In for 10 tickets.

Yeah, the odds are low - but these a certain point where the opportunity cost makes it worth it. For me that's usually at about the $200 mil mark.

[MacroGuru]

I am up in Buffalo for work this week, I have been debating on getting a few tickets.

[Kodos]

Originally Posted by wade moore

In for 10 tickets.

Yeah, the odds are low - but these a certain point where the opportunity cost makes it worth it. For me that's usually at about the $200 mil mark.

You stand a better chance of Seth Dwight winning an IHOF Bowl.

[Neuqua]

I love it when the jackpot gets higher and higher because all it does is bring in more customers to the store.

Anyways, I am in for 2.

[weegeebored]

Originally Posted by stevew

I'm in for 4 tickets, anybody else playing tonight? I could definitely use the 164 million lump sum cash payout.

Isn't a more realistic one-time payout around $108 mil? It seems to me that I read somewhere that the lump payment is 40% of the long-term payout. Then again, what's a paltry $56 million...

Aren't the odds of winning something like 1 in 180,000,000? (About the same odds that we might see TCY2 in the next couple of years. Oh hell...)

[wade moore]

Originally Posted by Kodos

You stand a better chance of Seth Dwight winning an IHOF Bowl.

Sadly, you may be wrong about that .

[Lorena]

Originally Posted by MikeVic

Can you buy me one.

I'll buy you one.

[stevew]

Originally Posted by weegeebored

Isn't a more realistic one-time payout around $108 mil? It seems to me that I read somewhere that the lump payment is 40% of the long-term payout. Then again, what's a paltry $56 million...

Aren't the odds of winning something like 1 in 180,000,000? (About the same odds that we might see TCY2 in the next couple of years. Oh hell...)

That's what the website says. After taxes you're looking at like 100million take home free and clear, +/- 5 million.

[Raiders Army]

I picked up 5 tickets. I do not see the need to get the cash value option. If the jackpot is more than $10 million, I always go for the annual payments. At $10 million, you'll receive $384,615.39 a year (before taxes). That's enough to stop working and be able to save for retirement. The higher the jackpot, the more I would think one would want to get annual payments. I mean, what are you going to do with all that money at once? Blow it on frivolous stuff?

With a $270 million jackpot, say you win it all and don't have to split it with anyone. That's $10,384,615.39 a year (before taxes) for 26 years. Even if you had to split it four ways, you still get over $2.5 million a year.

[stevew]

what better, government investment(approx 3-5%) or me having good people doing it(solid chance at >7).

Over 24 years if you can get close to 10%, you'd have like 800million in the bank.

[MrBug708]

5 dollars per here at work with about 15. 5 dollars for myself too

[cartman]

Originally Posted by Raiders Army

I picked up 5 tickets. I do not see the need to get the cash value option. If the jackpot is more than $10 million, I always go for the annual payments. At $10 million, you'll receive $384,615.39 a year (before taxes). That's enough to stop working and be able to save for retirement. The higher the jackpot, the more I would think one would want to get annual payments. I mean, what are you going to do with all that money at once? Blow it on frivolous stuff?

With a $270 million jackpot, say you win it all and don't have to split it with anyone. That's $10,384,615.39 a year (before taxes) for 26 years. Even if you had to split it four ways, you still get over $2.5 million a year.

I always go for the cash value option. The way I see it, if you set it up correctly, you'll get at least that much forever. I've already planned to have a corporation claim the winnings. One, for tax purposes, and two, to keep me from spending it all on hookers and blow in 5 glorious and decadent years.

I also do the Megaplier here in Texas. To me, it is like playing a slot machine without putting all the coins in.

[Crapshoot]

Genuine question (for someone like me with an economic bent) - why? The odds of winning a lottery are miniscule at best, and a cursory analysis shows that the expected payoff is awful - that's why they are such large revenue generators. I think the phrase "tax on stupid people" may be harsh, but I have used it before.

So without being prejudiced, is it because you get some enjoyment out of the playing part (this is why casinos make sense to me)? Is it because buying hope makes you feel better?

[cartman]

Originally Posted by Crapshoot

Genuine question (for someone like me with an economic bent) - why? The odds of winning a lottery are miniscule at best, and a cursory analysis shows that the expected payoff is awful - that's why they are such large revenue generators. I think the phrase "tax on stupid people" may be harsh, but I have used it before.

So without being prejudiced, is it because you get some enjoyment out of the playing part (this is why casinos make sense to me)? Is it because buying hope makes you feel better?

I allocate the funds spent to my "ultra high-risk" investment pool.

[JonInMiddleGA]

Originally Posted by Crapshoot

Is it because buying hope makes you feel better?

What better, 1 chance in a gazillion or 0 chance in a gazillion?

[Cringer]

I had two chances in a gazillion, and came up empty.

[MrBug708]

Damn. Crappy numbers

[GrantDawg]

Originally Posted by Crapshoot

Genuine question (for someone like me with an economic bent) - why? The odds of winning a lottery are miniscule at best, and a cursory analysis shows that the expected payoff is awful - that's why they are such large revenue generators. I think the phrase "tax on stupid people" may be harsh, but I have used it before.

So without being prejudiced, is it because you get some enjoyment out of the playing part (this is why casinos make sense to me)? Is it because buying hope makes you feel better?

Well, you can't win if you don't play. It is an almost impossible chance, but it does happen. My best friend hit 5 out of 6 the last time the pot was this big (about a month and a half ago). He cleared $175,000 after taxes. He had the check within two hours of turning the ticket in. Not enough to retire on, but still a healthy chunk of change.

[QuikSand]

Originally Posted by Crapshoot

Genuine question (for someone like me with an economic bent) - why? The odds of winning a lottery are miniscule at best, and a cursory analysis shows that the expected payoff is awful - that's why they are such large revenue generators. I think the phrase "tax on stupid people" may be harsh, but I have used it before.

So without being prejudiced, is it because you get some enjoyment out of the playing part (this is why casinos make sense to me)? Is it because buying hope makes you feel better?

There is an extended school of thought on this, not entirely internally consistent. Most people say it comes down to the notion that you "don't miss" the few bucks you spend on a few tickets, but you have some chance to win life-changing money... making it seem like something for nothing. Also, the notion that for a few bucks you provide yourself something to dream about for the rest of the day... I think that sums it up best, at least for the people who are only occasional players.

[Raiders Army]

Originally Posted by stevew

what better, government investment(approx 3-5%) or me having good people doing it(solid chance at >7).

Over 24 years if you can get close to 10%, you'd have like 800million in the bank.

what better?

a. having a sure income for 26 years
b. going broke or having more money than you could possibly spend

I gotta go with option a on this one. From what I understand, a lot of big lottery winners go broke relatively quickly. It's all money that you wouldn't have had anyhow, so really what's the difference between $800 million and $270 million? I mean, do you really need that extra $530 million at any point in your life compared to what you're making now?

The other factor here is the charity factor. It's a good excuse to not give to every relative and organization asking for a handout when you get a huge chunk o' change.

[Marc Vaughan]

If one of you wins can I borrow $10

[Kodos]

Originally Posted by GrantDawg

Well, you can't win if you don't play.

I had a friend that bought me a lottery ticket for my birthday a few years back. I think it was one with 3 different numbers involved. Anyway, I ended up winning $300 without buying a ticket.

[Cringer]

Originally Posted by Marc Vaughan

If one of you wins can I borrow $10

Now I feel greedy, I was going to ask for a couple of hundred.

[cartman]

Originally Posted by Kodos

I had a friend that bought me a lottery ticket for my birthday a few years back. I think it was one with 3 different numbers involved. Anyway, I ended up winning $300 without buying a ticket.

Kang told me he won the jackpot.

[Kodos]

Time for a paternity suit!

[digamma]

Originally Posted by QuikSand

Also, the notion that for a few bucks you provide yourself something to dream about for the rest of the day... I think that sums it up best, at least for the people who are only occasional players.

YY...when I worked at a law firm, I would occasionally go in with a couple of other associates on a big jackpot ticket. On purchase days, we would go down together and buy the ticket and coffee and spend several minutes coming up with creative ways to resign when we won.

[Celeval]

Originally Posted by Raiders Army

what better?

a. having a sure income for 26 years
b. going broke or having more money than you could possibly spend

If you're smart up front, you can make thatr lump sum into sure income for many more than 26 years,

[JonInMiddleGA]

Winning ticket sold in Georgia

No, it wasn't me

[wade moore]

well - that further delays my plan to fund a text sim .

[Logan]

I usually spend a few bucks a day on good coffee when I could drink the shit in my office for free. That basically sums up why I think it's fine to drop a couple bucks on lottery tickets a couple times a year.

[Raiders Army]

First hit from google on "lottery winner stories". hxxp://lottoreport.com/AOLSadbuttrue.htm

Unlucky in Riches
Winning the lottery turned life into a nightmare.

By ELLEN GOODSTEIN
November 8, 2004

For a lot of people, winning the lottery is the American dream. But for many lottery winners, the reality is more like a nightmare.

"Winning the lottery isn't always what it's cracked up to be," says Evelyn Adams, who won the New Jersey lottery not just once but twice (1985, 1986) to the tune of $5.4 million. Today the money is all gone and Adams lives in a trailer.

"I won the American dream but I lost it, too. It was a very hard fall. It's called rock bottom," says Adams.

"Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language -- 'No.' I wish I had the chance to do it all over again. I'd be much smarter about it now," says Adams who also lost money at the slot machines in Atlantic City.

"I was a big time gambler," admits Adams. "I didn't drop a million dollars, but it was a lot of money. I made mistakes, some I regret, some I don't. I'm human. I can't go back now so I just go forward, one step at a time."

Living on food stamps

William "Bud" Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his Social Security.

"I wish it never happened. It was totally a nightmare," says Post.

A former girlfriend successfully sued him for a share of his winnings. It wasn't his only lawsuit. A brother was arrested for hiring a hit man to kill him, hoping to inherit a share of the winnings. Other siblings pestered him until he agreed to invest in a car business and a restaurant in Sarasota, Fla., -- two ventures that brought no money back and further strained his relationship with his siblings.

Post even spent time in jail for firing a gun over the head of a bill collector.

Within a year, he was $1 million in debt.

Post admitted he was both careless and foolish, trying to please his family. He eventually declared bankruptcy.

Now he lives quietly on $450 a month and food stamps.

"I'm tired, I'm over 65 years old, and I just had a serious operation for a heart aneurysm. Lotteries don't mean [anything] to me," says Post.

Deeper in debt

Suzanne Mullins won $4.2 million in the Virginia lottery in 1993. Now she's deeply in debt to a company that lent her money using the winnings as collateral.

She borrowed $197,746.15, which she agreed to pay back with her yearly checks from the Virginia lottery through 2006. But, when the rules changed allowing her to collect her winnings in a lump sum, she cashed in the remaining amount. But, she stopped making payments on the loan.

She blamed the debt on the lengthy illness of her uninsured son-in-law who needed $1 million for medical bills.

Mark Kidd, the Roanoke, Va., lawyer who represented the Singer Asset Finance Company who sued Mullins, confirms. He won a judgment for the company against Mullins for $154,147 last May, but they have yet to collect a nickel.

"My understanding is she has no assets," says Kidd.

Ken Proxmire was a machinist when he won $1 million in the Michigan lottery. He moved to California, went into the car business with his brothers and within five years, Ken had filed for bankruptcy.

"He was just a poor boy who got lucky and wanted to take care of everybody," explains Ken's son Rick.

"It was a hell of a good ride for three or four years, but now he lives more simply. There's no more talk of owning a helicopter or riding in limos. We're just everyday folk. Dad's now back to work as a machinist," says his son.

Willie Hurt of Lansing, Mich., won $3.1 million in 1989. Two years later he was broke and charged with murder. His lawyer says Hurt spent his fortune on a divorce and crack cocaine.

Charles Riddle of Belleville, Mich., won $1 million in 1975. Afterward, he got divorced, faced several lawsuits and was indicted for selling cocaine.

Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, particularly politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand.

One Southeastern family won $4.2 million in the early '90s. They bought a huge house and succumbed to repeated family requests for help in paying off debts.

The house, cars and relatives ate the whole pot. Eleven years later, the couple is divorcing, the house is sold, and they have to split what is left of the lottery proceeds. The wife got a very small house and the husband has moved in with the kids. Even the life insurance they bought ended up getting cashed in.

"It was not the pot of gold at the end of the rainbow," says their financial advisor.

Luck is fleeting

These sad-but-true tales are not uncommon, say the experts.

"For many people, sudden money can cause disaster," says Susan Bradley, a certified financial planner in Palm Beach, Fla., and founder of the Sudden Money Institute, a resource center for new money recipients and their advisors.

"In our culture, there is a widely held belief that money solves problems. People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves," she says.

Craig Wallace, a senior funding officer for a company that buys lottery annuity payments in exchange for lump sums, agrees.

"Going broke is a common malady, particularly with the smaller winners. Say you've won $1 million. What you've really won is a promise to be paid $50,000 a year. People win and they think they're millionaires. They go out and buy houses and cars and before they know it, they're in way over their heads," he says.

Are you really a 'millionaire'?

Part of the problem is that the winners buy into the hype.

"These people believe they are millionaires. They buy into the hype, but most of these people will go to their graves without ever becoming a millionaire," says Wallace, who has been in the business for almost a decade.

"In New Jersey, they manipulate the reality of the situation to sell more tickets. Each winner takes a picture with a check that becomes a 3-foot by 5-foot stand-up card. The winner is photographed standing next to a beautiful woman and the caption reads: 'New Jersey's newest millionaire.'"

Winning plays a game with your head

Bradley, who authored "Sudden Money: Managing a Financial Windfall," says winners get into trouble because they fail to address the emotional connection to the windfall.

"There are two sides to money. The interior side is the psychology of money and the family relationship to money. The exterior side is the tax codes, the money allocation, etc."

"The goal is to integrate the two. People who can't integrate their interior relationship with money appropriately are more likely to crash and burn," says Bradley.

"Often they can keep the money and lose family and friends -- or lose the money and keep the family and friends -- or even lose the money and lose the family and friends."

Bill Pomeroy, a certified financial planner in Baton Rouge, La., has dealt with a number of lottery winners who went broke.

"Because the winners have a large sum of money, they make the mistake of thinking they know what they're doing. They are willing to plunk down large sums on investments they know nothing about or go in with a partner who may not know how to run a business."

What if you get so (un)lucky?

To offset some bad early-decision making and the inevitable requests of friends, relatives and strangers, Bradley recommends lottery winners start by setting up a DFZ or decision-free zone.

"Take time out from making any financial decisions," she says. "Do this right away. For some people, it's smart to do it before you even get your hands on the money.

"People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability -- even friends and family," she cautions.

"It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture.

"It's a time to think things through, sort things out and seek an advisory team to help make those important financial choices."

As an example, Bradley says that on a list on 12 things people who come into a windfall will spend money on, buying a house is at the top of the list while investing is number 11.

"You really don't want to buy a new house before taking the time to think about what the consequences are.

"A lot of people who don't have money don't realize how much it costs to live in a big house -- decorators, furniture, taxes, insurance, even utility costs are greater. People need a reality check before they sign the contract," she says.

Evelyn Adams, the N.J. lottery double-winner, learned these lessons the hard way.

"There are a lot of people out there like me who don't know how to deal with money," laments Adams. "Hey, some people went broke in six months. At least I held on for a few years."

[Raiders Army]

On the flipside, a really good news story here:

http://money.cnn.com/2007/02/20/maga...tune/index.htm

But note that the guy says that most lottery winners go broken within 10 years.

[wade moore]

Also, $5mil is a LOT different than $100 mil. A couple of big purchases and life spending and $5mil doesn't go that far, it's pretty hard to blow through $100 mil especially with even a minimum of smart planning.

[EagleFan]

The problem usually is that Billy Joe Jim Bob who actually wins has no idea what to do with it while people like many of us here who actually have solid plans are rare among the winners, or so it seems by the stories.

Fo me it depends on how much I win. If I win 5 million my life changes very little (except that I would be looking for a different job, one that I like since I would not be pigeon-holed into a salary range). If I win 100 million my life changes quite a bit more (or at least what I can do with the money changes).


Example:
With this last lottery the cash after taxes would have been in the 100 million range so we'll use that as the number:

family and friends - 20 million
scholarship fund setup for where I went to school - 5 million
other charitable causes - 10 million
trust fund for daughters - 10 million
start up company - 10 million
miscellaneous (house, cars, fun money) - 5 million
remainder invested - 40 million

At just 5% you're looking at 2 million a year income, get a goor 10% return and you're talking 4 million a year. Definitely enough to live off and not have to worry about being one of "those" stories.


The above example is just a quick "off the top of my head" example. The real plan would involve much more thought but I did not have a ticket for the lottery yesterday so I did not have the plan together.

[Schmidty]

Originally Posted by Ronnie Dobbs2

Do you think that's a function of winning the lottery, or more the lifestyle of people most likely to play and then win the lottery?

Yeah, I think it's the latter. Poor people play the lottery, and generally, poor people are stupid and lazy.

Hmmm....I'm quasi-poor, but I don't play the lottery, so I guess that just makes me lazy.

[Mustang]

Winning $1 to 5 million would be the most difficult to deal with IMHO. People hear you win $1 Million and after taxes, it would be around $600K?

100K in a fund for our daughter, $200K to upgrade and pay off the house, maybe 20K for a new car for the wife and you are left with $280K which is alot of money as a lump sum, but isn't much over the next 30 years of my life. I could probably retire earlier so, that would be nice, but I'd still be working.

Unfortunately people hear $1 million and think you just have gobs of money to throw about so, not like I could go and buy a new house for our parents...

Regardless though, I don't see myself having a cocaine problem though so, there are other issues going on with some of these people that money just brought out in them.

[watravaler]

I would probably acquire a cocaine problem...and love every minute of it...and when I end up in a trailer, I will not whine to the press

[timmynausea]

Originally Posted by watravaler

I would probably acquire a cocaine problem...and love every minute of it...and when I end up in a trailer, I will not whine to the press

See, that's the difference between us. I'd be saying, "After I pay off my house, my primary expenses would be groceries, utilities and property taxes. I can basically start investing all of my other income." Meanwhile you're like, "Remember that scene in Scarface when he has the huge mound of cocaine on his desk? How much is something like that going to run me? Anybody have a ballpark figure on that?"