Interesting recent announcement from the Powerball people, that reflects on bond yields....

[A HERETIC I AM]

4. I think it is done specifically to make the jackpot look huge.

And I agree it is pretty deceptive. I also agree that if you take the cash and invested the majority of it over the course of 30 years, your returns would very likely beat the crap out of the stated jackpot. Again, bear in mind that Powerball REQUIRES a very conservative, bond based annuity to make its jackpot predictions.

A good rule of thumb has always been that after taxes, you would take home about 1/3 of the stated jackpot if you take the cash.

That pretty much has held true for years, until now. With bond yields so low, it is closer to 50%


The stated cash option ($22 million) minus the top marginal rate of 37%;
17.7 X .63 = 11.151

So winning this upcoming drawing would pay $11.151 mil (Give or take a bit) after federal taxes but before any applicable state income taxes, so right at fifty percent of the stated $22 mil jackpot.