$540 million lottery has states antic...

$540 million lottery has states anticipating tax jackpot

There are 230 comments on the The Shreveport Times story from Mar 29, 2012, titled $540 million lottery has states anticipating tax jackpot. In it, The Shreveport Times reports that:

A Mega Millions lottery contestant buys a ticket today for Friday's $500 million game at a corner newsstand in New York.

Join the discussion below, or Read more at The Shreveport Times.

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“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#1 Mar 29, 2012
Since there are only 176 million possible number combinations, why doesn't the state just buy a ticket with every single number combination. They would guarantee themselves to win the jackpot.
bob smith

Carol Stream, IL

#2 Mar 29, 2012
WeTheSheeple wrote:
Since there are only 176 million possible number combinations, why doesn't the state just buy a ticket with every single number combination. They would guarantee themselves to win the jackpot.
U think about num_ber ;)

Since: May 11

Location hidden

#4 Mar 30, 2012
WeTheSheeple wrote:
Since there are only 176 million possible number combinations, why doesn't the state just buy a ticket with every single number combination. They would guarantee themselves to win the jackpot.
I've always wondered why they don't break the jackpots down and have MORE winners rather than one winner - 500 one million dollar winners as opposed to 1 500 million dollar winner. I'd play more if the odds were better.

Since: Aug 08

Location hidden

#5 Mar 30, 2012
The California lotto retirement plan for suckers...

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#6 Mar 30, 2012
PayThat CEO wrote:
<quoted text>
I've always wondered why they don't break the jackpots down and have MORE winners rather than one winner - 500 one million dollar winners as opposed to 1 500 million dollar winner. I'd play more if the odds were better.
You have to match the numbers to win. So if 500 people match the winning numbers, then there will indeed be 500 one million dollar winners as opposed to one 500 million dollar winner.

Besides which, jackpots don't get to $500 million on the thought of winning $1 million, which after taxes and the cash payout option becomes about $500,000. Watch the lines at every gas station or convenince store tonight.

“"I'm A Great American!"”

Since: Sep 08

Obama Nation! USA! USA!

#7 Mar 30, 2012
WeTheSheeple wrote:
Since there are only 176 million possible number combinations, why doesn't the state just buy a ticket with every single number combination. They would guarantee themselves to win the jackpot.
...because if there are multiple winners, that strategy loses money.

'Ol PooPoo has $5 invested in tonight's Mega Million. Wish him luck!

(Rumor has it he'll retire from Topix if he wins it all...)
Anonymous

Long Beach, CA

#8 Mar 30, 2012
WeTheSheeple wrote:
<quoted text>
You have to match the numbers to win. So if 500 people match the winning numbers, then there will indeed be 500 one million dollar winners as opposed to one 500 million dollar winner.
Besides which, jackpots don't get to $500 million on the thought of winning $1 million, which after taxes and the cash payout option becomes about $500,000. Watch the lines at every gas station or convenince store tonight.
It hasn't reached $500M yet this way either.

Whatever the lump sum payout is, is how much the pot is.(Even if you take the annual payments.) That is how much the lottery commission has to invest, in order to pay the annuity.

Would still be nice. But I laugh when people refer to the future value as the amount of the pot.

Good luck to all! I do hope there are half a dozen winning tickets and mine is one of them. Don't need that whole amount to myself.

Peace

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#9 Mar 30, 2012
Anonymous wrote:
<quoted text>
It hasn't reached $500M yet this way either.
Whatever the lump sum payout is, is how much the pot is.(Even if you take the annual payments.) That is how much the lottery commission has to invest, in order to pay the annuity.
Would still be nice. But I laugh when people refer to the future value as the amount of the pot.
Good luck to all! I do hope there are half a dozen winning tickets and mine is one of them. Don't need that whole amount to myself.
Peace
You're wrong. Do the math. The current estimated payout if either $20 million for 26 years ($520 million total) or a lump sum payment of $394 million. Go to the megamillions site and it will say what the annual payments v cash payout is based on the current jackpot.

Btw, it's now up to $640 million, and likely to be $700 million by the drawing at 11pm eastern time.
Anonymous

Long Beach, CA

#10 Mar 30, 2012
WeTheSheeple wrote:
<quoted text>
You're wrong. Do the math. The current estimated payout if either $20 million for 26 years ($520 million total) or a lump sum payment of $394 million. Go to the megamillions site and it will say what the annual payments v cash payout is based on the current jackpot.
Btw, it's now up to $640 million, and likely to be $700 million by the drawing at 11pm eastern time.
No. You are wrong.$20M for 26 years is NOT the same as winning $520M TODAY.

I can see you are uneducated. No problem. Look up something called the present value of money. If you have a brain, you will learn that a dollar 26 years from now is not the same as a dollar today.

The lump sum payment (presently estimated at $394M according to you) is what you win, no matter which way you take the winnings.

If you want to further show your ignorance, feel free to arugue this simple point again.

I still wish you luck, if you are playing. But if you win, be sure to get some financial advice. It is clear you would need it badly.
Herman

Fort Walton Beach, FL

#11 Mar 30, 2012
Since they are 176 million combination there is no way in the world some millionaire buy all the combination necessary to win since he had to start to fill up the tickets some 20 years ago.
Makes sense

Dearborn, MI

#12 Mar 30, 2012
All the new Republican governors are drooling.

Since: Sep 08

Huntsville, AL

#13 Mar 30, 2012
Amazing! People won't piss away $1 to not win $10 MILLION, but they'll piss away $100's to not win $600 Million.

Lottery: A voluntary tax on the mathematically illiterate.
Mega Win

Camarillo, CA

#14 Mar 30, 2012
you can't win if you don't play.
our schools win also
Anonymous

Long Beach, CA

#15 Mar 30, 2012
Mega Win wrote:
you can't win if you don't play.
our schools win also
Ya know, that's what they say. Yet they keep laying off teachers and increasing the student to teacher ratio.

We're going to have more people like the one above, who don't understand the time value of money. LOL!

They're the same ones who blame the banks for putting a gun to their head and making them sign a contract for ridiculous monthly mortgage payments!! ROTFLMAO!!
drink the hivE

Anonymous Proxy

#16 Mar 30, 2012
Govt In Control Of Gambling 4 Revenue - Like The Vito Genovese Family - Next Prostitution?- Maybe - We're Making Progress

http://i19.photobucket.com/albums/b175/ebaypi...

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#17 Mar 30, 2012
Anonymous wrote:
<quoted text>
No. You are wrong.$20M for 26 years is NOT the same as winning $520M TODAY.
I can see you are uneducated. No problem. Look up something called the present value of money. If you have a brain, you will learn that a dollar 26 years from now is not the same as a dollar today.
The lump sum payment (presently estimated at $394M according to you) is what you win, no matter which way you take the winnings.
If you want to further show your ignorance, feel free to arugue this simple point again.
I still wish you luck, if you are playing. But if you win, be sure to get some financial advice. It is clear you would need it badly.


Feel free to bite me you arrogant p.o.s.!

I understand inflation (which is what you're alluding to), but you'd still be wrong. If you take the annuity you get $26 million per year for the next 20 years (yes I switched that up the first time), but it's paid in that year's dollars, NOT adjusted for inflation. The annuity GUARANTEES you will recieve $26 million this year, then $26 million in 2013 (in 2013 dollars), the $26 million in 2014 (in 2014 dollars), etc.

So while the $26 million you get in 2020 won't be worth the same in inflation adjusted dollars as today, in the end you still have all $540 you won, as opposed to the $394 million cash payout, which will also be subject to the same effects of inflation.

So compare $394 million to $540 million. Now which is bigger??

Asshat!

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#18 Mar 30, 2012
PlacitasRoy wrote:
Amazing! People won't piss away $1 to not win $10 MILLION, but they'll piss away $100's to not win $600 Million.
Lottery: A voluntary tax on the mathematically illiterate.
What's the big deal? It's a free country. If people want to spend money on a 1 in 176 million chance of becoming a millionaire, that's their choice. For the overwhelming majority of Americans, it's their ONLY chance- no matter how remote- of ever seeing a million dollars.

Plus nearly half of every dollar spent on lottery tickets goes to support schools and other programs depending on the state. I'd rather people spent $5/day on lottery tickets than $5/day on coffee or beer or smokes.
Anonymous

Long Beach, CA

#19 Apr 2, 2012
WeTheSheeple wrote:
<quoted text>
Feel free to bite me you arrogant p.o.s.!
I understand inflation (which is what you're alluding to), but you'd still be wrong. If you take the annuity you get $26 million per year for the next 20 years (yes I switched that up the first time), but it's paid in that year's dollars, NOT adjusted for inflation. The annuity GUARANTEES you will recieve $26 million this year, then $26 million in 2013 (in 2013 dollars), the $26 million in 2014 (in 2014 dollars), etc.
So while the $26 million you get in 2020 won't be worth the same in inflation adjusted dollars as today, in the end you still have all $540 you won, as opposed to the $394 million cash payout, which will also be subject to the same effects of inflation.
So compare $394 million to $540 million. Now which is bigger??
Asshat!
Thanks for proving how ignorant you are. The lottery commission does not have to invest $540 million to pay that annuity you fool. Regardless of the sum of the payments equaling $540M, you have not won $540M in 2012 dollars.(Turned out to be approximately $640M, since people went crazy.)

Comparing $394M now to $540M over 26 years is not an apples to apples comparison, Moron. But feel free to post more ignorance. The time value of money is difficult for some people to comprehend.
Anonymous

Long Beach, CA

#20 Apr 2, 2012
By the way, the interest that is factored into the time value of money is not the same as "inflation". But thanks for playing.

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#21 Apr 2, 2012
Anonymous wrote:
<quoted text>
Thanks for proving how ignorant you are. The lottery commission does not have to invest $540 million to pay that annuity you fool. Regardless of the sum of the payments equaling $540M, you have not won $540M in 2012 dollars.(Turned out to be approximately $640M, since people went crazy.)
Comparing $394M now to $540M over 26 years is not an apples to apples comparison, Moron. But feel free to post more ignorance. The time value of money is difficult for some people to comprehend.
I never said it the annuity payments totaled $540M in 2012 dollars, or $640M or whatever it turned out to be. To put it in terms a moron like you would understand, I simply said you get MORE dollar bills by taking the annuity, regardless of what they are worth.

There is no way of knowing what the $640M annuity will be worth at the end of the 20 year payout, because no one can predict what inflation will be over the next 20 years or what investments the person would make with their annual annuity payments. Just like you can't know what the $460M (or whatever) cash payment will be worth in 20 years.

All that can be said with 100% certainly is that IF inflation is zero for the next 20 years and you put every dollar you received under your mattress for those 20 years, at the end of 20 years you'd have MORE dollar bills in your possession if you took the annuity payments. Everything else is simply guessing.

That said, I'd take the lump sum payment because I believe inflation will not be zero for the next 20 years, and I'm sure I could do better investing that money than whomever the lottery people have investing it for the annuity.

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