I know this is lame...$266 Million Jackpot......

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In 30 years time, that $200k has the buying power of $82k in today's dollars, so you can only live off earnings while the principal shrinks to $3M, and your Standard of living to $82k.

To maintain a standard of living, it either has to be low enough that the rolling Principal stays ahead of inflation (then what's the point ?), or you need to chew into it.

Not arguing, but I know guys in their 30s who reckon that they could win $1M, and never work again, doing whatever spending they are doing now...and having an extra 8 hours a day to think of ways to spend.
 
Originally Posted By: Kestas
Aren't the large lottery winnings ($1M) paid out yearly over 20 years?


My state gives the option of taking 50% and getting a lump sum.
 
In NY State, the answer to the state's fiscal ills seems to be the establishment of a new scratch off lottery ticket or new multi-state giant lottery game.

I know there are plenty of middle class and borderline poverty individuals, but they don't have enough momey to spend on these programs to keep NY solvent. Though I know many who spend hundreds each week trying.

I never see limos pull up to the lottery dealer and a passenger walk out with multiple tickets.
 
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Originally Posted By: Gary Allan
What they do with the proceeds is a variable. Here PA uses it to fund the PACE program (there may be others).

I don't trust it when they say the lotto or new tax goes to a certain fund (usually some feel-good fund like schools or children). In Michigan they sold the lotto program as funding for schools. It turns out they simply cut the general funding for schools the same amount as the lottery profits. So in the end the money really propped up the general fund.
 
In my line of work I've study too much statistic to discourage me from doing any sort of gambling or overpay for electronic gadgets.

The odds of going to vegas and play blackjack for 28 times in a roll for all in and win the same amount is much higher than winning the lottery, and you only need to start with $1.
 
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Originally Posted By: Shannow
In 30 years time, that $200k has the buying power of $82k in today's dollars, so you can only live off earnings while the principal shrinks to $3M, and your Standard of living to $82k.

To maintain a standard of living, it either has to be low enough that the rolling Principal stays ahead of inflation (then what's the point ?), or you need to chew into it.

Not arguing, but I know guys in their 30s who reckon that they could win $1M, and never work again, doing whatever spending they are doing now...and having an extra 8 hours a day to think of ways to spend.


Look at it this way though, I definitely wouldn't be spending that entire $200k every year, and some years my investments might make me double that amount, and any extra I would make would just get re-invested (or would just stay where they were in the first place) so with a wise financial advisor I would not only be able to put that principal to good work, but I would also be able to grow it even further for my future.
 
I like the lottery although I've never played. It props up the tax base and evens out the tax-bracketing. As it stands here in Calif, wealthy people pay most of the property taxes and personal income taxes. The lottery evens things out a bit because of the disproportionate number of poor people who play. I do consider the lotto to be a tax
 
Originally Posted By: Gary Allan
When you hit a lottery, there's all kinds of friends and relatives that crawl out of the woodwork to help you make it grow to even higher levels of wealth.

One such PA lottery winner was broke. I think it was 50:50 on senseless spending and financing kin in failed business ventures.
That is precisly why I would disapear if I won a sizeable amount of money on a lottery. I wouldn't tell anybody where I am going, just up and leave. Buy some property in another part of the country and build a small house. I would keep in touch with immediate family members by phone but not tell where I am living.
 
Originally Posted By: Gary Allan
There are the payouts like a thousand dollars a week for life, which are guaranteed $1M in benefits. I assume that the estate of the winner continues to get the $1000/week until the $1M is reached.



We have a scratch and win lottery up here called Cash For Life which has a top prize of $1000 per week for the rest of your life (it doesn't stop at one million, it keeps going forever) That would be my favorite one to win as the money would just keep coming every week so that you'd never have any financial worries again, but it's not big enough that you'd find people coming out of the woodwork begging for money. And up here it's completely tax free, so getting $1000 a week would be roughly the same paycheck as having a job with a salary of almost $100,000 a year.

If I ever won that lottery my plan would be to continue working and I would put that $1000 a week directly onto paying off my line of credit and mortgage and then once the mortgage was paid off I'd retire (or I'd keep working where I am but only on a part time basis).

Every once in a while they offer a special edition of that lottery and it's $2000 a week for life!

These tickets cost $4 and I buy one per week, but what I do is stretch it out so that I only scratch off one of the five boxes per day. That way each weekday when I wake up I have that little bit of hope that "today might just be the day"
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Also, right now in Canada they have specially marked Kit Kat chocolate bars that have a special PIN number inside and you go online and enter that PIN and there is one lucky number that is worth $1 million, but the payout ends up being $40,000 per year for 25 years. That is another one I'm entering a lot lately! (especially since I like Kit Kat bars anyways)
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Originally Posted By: xxch4osxx

That is precisly why I would disapear if I won a sizeable amount of money on a lottery. I wouldn't tell anybody where I am going, just up and leave. Buy some property in another part of the country and build a small house. I would keep in touch with immediate family members by phone but not tell where I am living.


You would let money break up your family? I hope your family doesn't read your post. It's quite sad actually
 
Originally Posted By: tonycarguy
Originally Posted By: xxch4osxx

That is precisly why I would disapear if I won a sizeable amount of money on a lottery. I wouldn't tell anybody where I am going, just up and leave. Buy some property in another part of the country and build a small house. I would keep in touch with immediate family members by phone but not tell where I am living.


You would let money break up your family? I hope your family doesn't read your post. It's quite sad actually
Why is it quite sad? I wouldn't be breaking up any family, where did you get that?
 
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