About the REAL payout of that Lottery jackpot [View all]
The Reality of Powerball
Yes, mathematically it looks good to buy a ticket for a $1.4 billion draw when you have a 1-in-~292 million shot at winning..
But only actual cash in hand winnings matter..
The rest is a fictitious "time value" figure predicated on an annuity, if you do not take lump sum.
That is money in the future, not money today, in hand.
So a cash payout would be around $868 million
then you pay taxes. 39.6% federal, and only 25% is withheld when you get the check.
Plus any state income taxes.
The 868 million assumes you are the ONLY winner.
But as the prize gets bigger, the buying frenzy that develops for each ticket increases the odds of a multiple winner.
Plus, last year the Powerball changed the odds, decreasing them by about half, of hitting the jackpot.
Not that a few million is something to sneeze at.
And eventually people DO win lotteries.
The above is just another way to look at it.
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