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N.C. town abuzz over $88M Powerball lottery jackpot win

Topic closed. 18 replies. Last post 7 years ago by RJOh.

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Tenaj's avatar - michellea
Charlotte NC
United States
Member #17406
June 18, 2005
4053 Posts
Offline
Posted: June 23, 2009, 6:39 am - IP Logged

The winner does get all the cash, the $88M is the amount it will yield if the winner is willing to allow the $40 to be invested in an annuity over the next 30 years. 

It like giving someone a few packages of seeds and telling them you have given them enough food for a life time if they are willing to start a garden with those seeds and maintain it for 30 years.

Interesting RJOH.  Maybe I will start playing jackpot games.

takeemtothebank

    dpoly1's avatar - driver
    PA
    United States
    Member #66141
    October 16, 2008
    1672 Posts
    Offline
    Posted: June 23, 2009, 1:57 pm - IP Logged

    There's nothing anyone can do about it if they aren't very nice or needy! Smiley  Bat  Smiley

    Wow -

    you are a genius !

    Poke

      GamerMom's avatar - tails

      United States
      Member #60535
      April 21, 2008
      460 Posts
      Offline
      Posted: June 24, 2009, 11:26 am - IP Logged

      Yes, but keep in mind that the Powerball annuity is different than all others, because it increases each year.  The MUSL people say that it's beneficial, because it makes the annuity as valuable in the final year as it is in the first.  (Inflation makes most annuities much less valuable in the final years -- $200,000 per year will be worth a lot less 30 years from now.)

      The side-effect (perhaps the intended effect) is that the annuity can increase faster than it would with a static annuity, relative to the cash value.

      It can actually be a compelling option for someone who wants the security of knowing that they won't go bankrupt in a year by mis-managing their money.

      My only problem with a PB annuity is that it starts out small and builds annually....well the first year would be the year I would need the most!!! I would want to move and buy a house and car somewhere else for my personal safety.  It seems they have that all backwards.  I know, I know, it's adjusted for inflation but the opposite would keep you more grounded:  Start out big then spend the rest of your life trying to maintain what you have instead of wasting it. I think it would make people more appreciative of it if they got less each year but that's JMHO

        RJOh's avatar - chipmunk
        mid-Ohio
        United States
        Member #9
        March 24, 2001
        19825 Posts
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        Posted: June 24, 2009, 12:53 pm - IP Logged

        My only problem with a PB annuity is that it starts out small and builds annually....well the first year would be the year I would need the most!!! I would want to move and buy a house and car somewhere else for my personal safety.  It seems they have that all backwards.  I know, I know, it's adjusted for inflation but the opposite would keep you more grounded:  Start out big then spend the rest of your life trying to maintain what you have instead of wasting it. I think it would make people more appreciative of it if they got less each year but that's JMHO

        The real difference is the size of the jackpot they get to advertise.  Last night no one won the MegaMillions jackpot and now for the next drawing it will be $81M (cash value $50M).  Had that been PowerBall with a  cash value of $50M they would advertise a $104M jackpot. PowerBall can advertise a 30% larger jackpot with the same cash value because of the way they structured their annuity payouts.

         * you don't need to buy more tickets, just buy a winning ticket * 
           
                     Evil Looking