Says the man who lives in the state that just sold the only winning Powerball ticket for $260 million last week.
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Mega Millions Jackpot Grows to $252 Million!
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Says the man who lives in the state that just sold the only winning Powerball ticket for $260 million last week.
Or the bird poops, and hits somebody, because theres a good chance the wind picks up the slip of paper and carries it away, so nobody wins.
Don't count on it.
They might withhold 25%, but if your prize is in the millions, your tax obligation is much higher. The way I read that FAQ, the 25% tax applies to prizes $5,000 or more - the 25% rate is much more reasonable.
If they only withhold 25% on a $100 million-plus payout, you're gonna be hit with penalties for not prepaying enough tax.
Says the man who lives in the state that just sold the only winning Powerball ticket for $260 million last week.
True. And it wasn't me. More is the pity. Grrr...
Oh well. Someone's life is improved. I hope it lasts.
It's impossible for anyone who's taken even basic statistics to buy a lottery ticket.
The fact that so many do says something.
Just look at it this way. If you bought every single ticket at standard price, you be guaranteed to win. And yet you would lose money, since the price of the tickets would be more than what you made, even before taxes.
The fact that so many do says something.
Just look at it this way. If you bought every single ticket at standard price, you be guaranteed to win. And yet you would lose money, since the price of the tickets would be more than what you made, even before taxes.
... but nobody is buying all the tickets, and yet the one that wins is in one persons hand when the numbers are drawn.
Exactly. They take 25% to make sure they get something out of you, but your still obligated up to the federal maximum. Then if your unlucky enough, your going to get hit with state taxes on top of that.
But I'd still take it
When you buy a lottery ticket for $1 you are not really buying a decent chance to win anything--you're really buying a "fantasy" until the drawing. I bet almost everyone on this thread thinks about what their life would be like with all that money. Such a dream is greatly enhanced when you have a slightly greater than zero chance of winnning.
You're omitting one very important clause in your above statement:
"Unless you're dealing with life-changing sums of money."
I understand statistics perfectly well for this application. I know the odds of winning are 170 million or so to one. I know the payout is 252 million or so. I know the expected rate of return is more than a dollar; so in this case, taxes aside, it's actually a solid payoff.
The big thing your statement overlooks is that the $5 I spent on tickets is relatively small to me; it isn't going to change my life at all to part with it. Winning the jackpot would change my life. In that sense, statistics becomes only part of the consideration.
Because unlike Colorado we have a crap ton more people. More people means we need to collect more taxes to support them.
I could do so much good in the world...
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...and still have so much fun with $252 million.
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...and still have so much fun with $252 million.