No no no. The irony is that you win the lottery and die the next day!
That’s even better. Cut me a slice of that!
Seeing as I have no guarantee of tomorrow, much less being alive in 8 weeks, I’d go for the immediate payout - that way if I get hit by a meteor, my family’s taken care of.
I don’t care if I have to wait until it hits an obscene amount. I’ll just have the other winners killed. I don’t even play the lottery until it hits past $100 million.
My primary concern is the security of my child, so I’ll take the next $20 million payday. There is no practical difference in how my family’s life would change between $20 and $40 million. The second $20 million (or third, or fourth) drops off dramatically in terms of how it helps us in any way that matters. Risking the possibility that I’ll be killed in an accident before delivering the goods would be stupid. I look at this question much as I do life insurance.
Added later for clarity: I’m Canadian. In Canada lottery winnings are paid in full upon presentation of the ticket, and are non taxable, so if you win a $20 million lottery you show up at the lottery HQ with the ticket, they take your picture and stuff and hand you a $20 million check and have you driven to your bank. You pay no tax. In the USA, where lotteries are taxable and there’s the thing where you don’t get the full amount right away or else you take a smaller amount or however it works, maybe the math would be different.
The lottery here for yesterday (Saturday) was $4,000,000 but all the winning numbers were under 30 (highest was 25) and I knew that wouldn’t be good because they all fit as birthdates. Indeed, instead of the usual number of winners (one or maybe two) there were ten.
I can’t imagine ever needing more than $1 million to satisfy my miniscule needs forever, anything more than that would be a bonus, so I’d do it sooner rather than later. The odds of me being the sole winner, or one of a very small group, on the minimum is reasonable, so I’d go for that.
Incidentally, lottery winnings here in Australia are tax free.
“*I’ll chose a different amount, namely *” no specific amount I’d know beforehand. At some point I’d decide it was high enough. But I wouldn’t just take the minimum.
ETA: I’d also arrange to buy a second ticket (have my wife win it, or maybe my sister if the jackpot was really large). If I’m the only winner, it wouldn’t matter, but if I have to share, that’s two shares instead of one.
Immediately is obviously a mistake, since $20 million is the theoretical minimum you could possibly get. $20 falls a little short of being set for life, but $80 more than covers it, so my main objective is simply to avoid getting stuck with $20. The next $120 million after $80 add very little utility value. Never the less, in the first 4 weeks I would hold out for $160, just because I can. If that doesn’t happen I take it on week 4 unless it’s at $20, in which case I take it the next time it hits $80.
You can’t understand the “logic” of needing more than $5,000,000 for the rest of your life?
You really cant imagine a life where $5,000,000 in one single year didnt cover everything you would EVER need in life?
I’m pretty sure I could live quite comfortably the rest of my life off a $5 million payday if I wanted to.
But I don’t want to.
It’s tempting to take the money immediately, but the arguments for waiting a bit are sound. I’d probably wait a month, then cash it out.
Truth is, even after taxes and all, I could live very, very nicely on a $20 million payout for the rest of my life.
Depends on how you want to win. Let’s say that $5 million was your payout after taxes and so forth. Since you want to live on that till you die, and you presumably don’t know when your death will occur, you invest it in tax-free municipal bonds with a 2% return. That gives you $100,000 per year. You can probably live on that indefinitely, but you won’t be able to travel extensively, or put your kids through an Ivy-league college.
How does that prevent any of the millions of other Powerball ticket purchasers from choosing your digits by chance?
Here in the U.K., what you win is what you get, so I’d go for the immediate win. I could live very well on £13M (~US$20M).
No that sounds like a good idea. 2/3 is more money than 1/2 and so forth.
But I’m puzzled why so many are choosing the $20 million option… That’s the absolute theoretical minimum amount you can possibly win!
I’d go for it immediately, get an annuity, and forget about it. Best not to get too tempted. And the extra money is like Christmas every month!
I’d be worried about the fraud department knocking down my door if I were you…
It doesn’t. Suppose there happen to be three other winners the day I decide to win, and the pot is $60 million. If I bought one ticket, I’ll get 1/4 of the pot, or $15 million. If I and my wife both buy a winning ticket, We’ll each win 1/5th of the pot, or a total of $24 million.
I figure I could explain away buying two identical tickets, but more than that, and there’d be too many questions.
I gotta say, I’m pretty surprised that lottery winnings are tax-free in Australia, Britain and Canada.
Who woulda thunk it?
:smack:
This is absolutely true. Doing it right away is sort of pointless.
Quoth VarlosZ:
This is my answer, too. Don’t get me wrong, I’d be very happy to win the 20 (even with taxes, annuity, etc.), and knowing my lifestyle, I could comfortably live on it for life (even more comfortably, if I continue working, too). But given that I’m not running the risk of losing the 20 (aside from the very slim chance of me dying), there’s no reason not to try for the most I possibly can.