RE: 1.3 Billion (Full Version)

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CodeOfSilence -> RE: 1.3 Billion (1/12/2016 9:51:21 AM)

How does the sale of these things go? Is there an infinite supply of dickets (i.e. are they created digitally as long as there is paper receipts to print them)?.

Cause this is getting to the point where there should be a frenzy for them :P


...edit: I'm not editing that [8D] , lol.



LadyPact -> RE: 1.3 Billion (1/12/2016 10:36:17 AM)

quote:

ORIGINAL: CodeOfSilence
Is there an infinite supply of dickets

...edit: I'm not editing that [8D] , lol.

Off topic.

I think you win typo of the day. [sm=champ.gif]




OsideGirl -> RE: 1.3 Billion (1/12/2016 10:40:00 AM)


quote:

ORIGINAL: CodeOfSilence



Cause this is getting to the point where there should be a frenzy for them :P




There kinda is a frenzy. Primm, Nevada which is on the California/Nevada border has one store in the outlet shops that is over the line into CA, so they sell Power Ball tickets. The line is wrapped around the parking lot.

The convenience stores and liquor stores here have their parking lots full.

I'm heading over to buy $20 for me and $20 for my Dad.

At $1.5 billion - the lump sum is about $900 million and after taxes would be $600 million.



CodeOfSilence -> RE: 1.3 Billion (1/12/2016 12:40:32 PM)

As I said above, if you win, for gods sake don't take the lump sum and then "invest".

"If you win" heh...for gods sake, buy me a sailing boat, will you? [:)]



OsideGirl -> RE: 1.3 Billion (1/12/2016 1:08:32 PM)


quote:

ORIGINAL: CodeOfSilence

As I said above, if you win, for gods sake don't take the lump sum and then "invest".

"If you win" heh...for gods sake, buy me a sailing boat, will you? [:)]

The problem with not taking the lump sum is that you're essentially loaning the money to the government interest free. While I see the merits of not taking the lump sum, I also see the principle of just gaining control of your own money.

Besides, I don't think I need more than $600 million.



DocStrange -> RE: 1.3 Billion (1/12/2016 1:14:12 PM)

quote:

ORIGINAL: CodeOfSilence

How does the sale of these things go? Is there an infinite supply of dickets (i.e. are they created digitally as long as there is paper receipts to print them)?.

Cause this is getting to the point where there should be a frenzy for them :P


...edit: I'm not editing that [8D] , lol.


You can buy as many tickets as you want. Theoretically there is an infinite supply.

If you have the manpower, you could buy all 292 million combinations. That would cost you 584 million plus labor expenses. If you take the current cash option you get 868 million. The is a 50.3% return on the investment. Companies have actually done that in the past. Since then the lottery has increased the drawings to twice a week. It makes it nearly impossible now to buy all 292 million combinations as there is simply not enough time to do so anymore.

And take the cash option!!!! You can double your money every 8 to 10 years. So lets just use 10 years as an example. 868 million after taxes is 563 million. 563 million turns into 928 million after the first 10 years, after the 2nd 10 years you have 1.5 billion, and after the final 10 years (30 years total) you end up with 2.4 billion versus the 30 years of only 1.4 billion. So take the cash option!!!

Edited to add that is based on the full income tax rate 45% between federal and state. You would actually end up with more if done as investments at a tax rate of only 15%



CodeOfSilence -> RE: 1.3 Billion (1/12/2016 1:20:05 PM)

You can invest your annuity too, people forget this. Also the stock market is not a rocket, I hope we the ever faster recurring crisises of capitalism have taught us this.

The RoI falls sharply if two or more people hit the same numbers. The RoI now is about 20% including other winnings if taking annuity after taxes. It also depends on how many people end up buying the tickets. The more people buy them this round the worse RoI.




DocStrange -> RE: 1.3 Billion (1/12/2016 1:30:15 PM)

You need to go back to school for math. If 2 people win, then each would get 434 million. But to buy all possible combination would cost 584 million. So you would loose 150 million. That is a 25% loss.



Lucylastic -> RE: 1.3 Billion (1/12/2016 1:32:31 PM)


quote:

ORIGINAL: LadyPact

quote:

ORIGINAL: CodeOfSilence
Is there an infinite supply of dickets

...edit: I'm not editing that [8D] , lol.

Off topic.

I think you win typo of the day. [sm=champ.gif]



hah!!!! nice one



CodeOfSilence -> RE: 1.3 Billion (1/12/2016 1:36:37 PM)

You don't seem to understand what I am saying in either respect m8:

First of all I spoke about the annuity and each would get about 500-600 depending on the taxrates in the state. (Jackpot is now 1.5 billion).
Secondly there is a chance nobody hit sit and there is a chance more than 2 people get it. Plus there are residual wins that count for not so few percent that those combinations can yield.

Thusly "The more people buy them this round the worse RoI."
I guess one should start with the premise of 900 million as a starting value and then see how many tickets were needed to get to 1.5 billion (I have no idea what portion of a PB goes there).

(I'm seriously considering buying this online if I can figure out a safe way. There's few times when you can say that you've gambled with the house being at a disadvantage unless you put much effort into it)!



DocStrange -> RE: 1.3 Billion (1/12/2016 1:51:18 PM)

Again your math does not at up. At 1.5 billion the 30 year annuity option gets you 50 million per year, 32.5 million after taxes (assuming a single winner) for 30 years. Even if you invest the 32.5 million every year, you still will end up with far less than taking the lump sum and investing it now. Investment income tax rate is only 15%.

The 30 year option you have to pay the full federal (39.6%) and state tax income tax ( varies ~ 8%) rate every year. The lump sum you only pay full income tax the first year, then only pay 15% investment tax for the remaining 29 years comparatively.



OsideGirl -> RE: 1.3 Billion (1/12/2016 2:01:07 PM)


quote:

ORIGINAL: CodeOfSilence

Also the stock market is not a rocket, I hope we the ever faster recurring crisises of capitalism have taught us this.



I live in San Diego. I'd invest in real estate. I want security vs. growth.



CodeOfSilence -> RE: 1.3 Billion (1/12/2016 2:02:17 PM)

@Doc
Well mine is 30% as a foreigner :-)

But my powerball tickets are 2.5 USD at the only good place I can find :(
State income tax can be as low as 0% for gambling wins! And if its 8% where you live cross the border! At least that's what I've been told.

And the fact that you pay it every year or not doesn't really matter because investment tax is split from income tax and that would be the only way it mattered (if income tax brackets influenced investment taxes, it doesn't matter that you're getting it taxed as such every year and remember you can be investing that yearly sum too).
To that add that you had nothing on the rest of my estimates I hereby order a gag order! [sm=ballgag.gif]


@ Oside
No news on the sailboat? :(?



DocStrange -> RE: 1.3 Billion (1/12/2016 2:27:43 PM)

That yearly sum is taxed 39.6% if taking the 30 yearly payments whether you are a foreigner or not. The Federal government takes their share before you get your share. Even if one lives in a state with no state tax, you still will end up with more, a lot more by taking the lump sum and investing it.



CodeOfSilence -> RE: 1.3 Billion (1/12/2016 2:47:45 PM)

Ah, I'm not going to argue with you, it matters not really!
Good luck to you if you're buying the tickets anyway.



DocStrange -> RE: 1.3 Billion (1/13/2016 2:08:20 PM)

Maybe the CS owner will win and then can afford to spruce up the place



CodeOfSilence -> RE: 1.3 Billion (1/16/2016 3:27:13 PM)

How did people fare? :)

Any potential sailboats for me? *puppy face*
*Begs*



thompsonx -> RE: 1.3 Billion (3/6/2016 11:39:38 AM)


ORIGINAL: Wayward5oul


ORIGINAL: thompsonx

I would buy all the butt-huts in nevada and put all the girls on salary.
Free pussy for the socially inept.


And I suppose you would be at the front of the line? [sm=couch.gif]

The most socially inept deserve a premium place in the line.



ThatDizzyChick -> RE: 1.3 Billion (3/6/2016 5:15:42 PM)

I'd put the bulk of it into developing affordable housing



Greta75 -> RE: 1.3 Billion (3/6/2016 5:54:06 PM)

FR
Well, I have a fantasy mansion that I want to build for my cats, so that would happen.
I would donate to animal sanctuaries that support cat causes.
The only charity I am interested in are cat charities, Big cats and house cats, so I would be more heavily involved in it.
I know I was a cat in my past life because they feel more like my family than my human family.

I don't really see myself spending alot of that money. Definitely want to give some of it away to my family, so they can do with a large sum whatever they like.

I'd invest to make more passive income.

And list of bucket list adventures that I wanna do, I'd probably do.




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