$290 MILLION:" Mega Millions lottery jackpot increased

Jul 1, 2004, 12:45 pm (25 comments)Share Post Copy Link

Huge demand for tickets spurs mid-week jackpot increase

The Mega Millions lottery group decided to raise the jackpot again prior to the Friday drawing due to a ticket sales frenzy.

Comments

RJOhJul 1, 2004, 12:58 pm

If no winners this Friday, could a half $Billion jackpot be next? Or maybe an increase in the 2nd prize amounts?

RJOh

whodeaniJul 1, 2004, 1:02 pm

"It is widely anticipated t

weshar75Jul 1, 2004, 1:11 pm

We'll probably see a 300+ jackpot for Friday since they have raised it today and one day left to drawing. I would like to see a new record set if it does roll over to Tuesday past 363.

fxdwgJul 1, 2004, 2:03 pm

I am not sure that I will play the notoriety of winning would be overwhelming and I would rather be flying under the radar. On the other hand it is hard to resist 290 million or 164 million cash option

mrmstJul 1, 2004, 2:06 pm

Lottery fever has hit at the office where I work. I run a pool which plays every drawing of Mega Millions. We usually have 16 players, each pitching in $3. Today, we have 49 members!!!! We will have around 150 tickets and chances at the big prize. If we do win the jackpot, and have the only winning tickets, each of the members would take home around $2 million after taxes. It might force our company out of business as nearly everyone is playing (including upper management) and there would be nobody left to run things. Now that would be interesting!!!!

Good luck to all!!!!!

whodeaniJul 1, 2004, 3:36 pm

If there is a rollover on Friday night, I wonder with this being a holiday weekend that people may be out of their normal routine and forget about current dvents around them and there may not be as many tickets being bought as normally would be. Nobody will be working on Monday and when they get to work on Tuesday the water cooler talk will be about the big lottery jackpot and realize they haven't bought a lottery ticket yet. By the time they get off of work on Tuesday, there will be long lines of people who also forgot to buy their tickets and people may not want to wait in line and say the heck with it and not buy any. I think chances are better than it usually would be to have another rollover for a jackpot of this level. I think it is definitely safe to say the jackpot would be a half-billion dollars after Tuesday if there still is no winner. Good luck all.

tg636Jul 1, 2004, 5:05 pm

A tremendous amount of money for one person, no matter what. If you took the annuity for $290,000,000, you could spent $150,147 a week *after taxes* every single week for 26 years. If you could get by on just $50,000 a week and save the other $100,000, that would be $5,200,000 a year in the bank. If that $5,200,000 were earning a lousy 1.35% interest, you would make $70,109 interest in the first year alone. And that's just from the first year, with 25 more checks and 25 more years of compounding interest and investments to follow.

If those amounts don't blow you away enough, imagine a $500 million jackpot and bigger returns that 1.35% on your investment. I can see why the rich stay rich.

CASH OnlyJul 1, 2004, 5:08 pm

tg:

Not if they won an annuity.

Any news yet on a new version of Megabucks?

CASH OnlyJul 1, 2004, 5:26 pm

nita:

If you win, take the LUMP SUM.

fxdwgJul 1, 2004, 5:36 pm

LOL@nitabug

Tg:

Try this one on for size say you live in the high tax state of Maryland you take the cash option after taxes 110,700,000. you try to spend million 700 thousand dollars put the rest in tax free municipal bonds yielding 4% that is 4 million per year or 330 thousand and change a month the only thing I am fuzzy on is FICA which would be another 8% off the top.

and yes cash only that is the only option I would take

nitabugJul 1, 2004, 7:01 pm

Ya'll I am not kidding! I can't fathom the thought of having so much money! No wonder some winners go crazy and give it away. Lump sum would be the best in my case. I have had nightmares about what to do with all of that money. How to invest, how to spend, gosh I would go nuts. I have tried all evening to get someone to ride to Illinois with me to buy a few tickets It's about 86 miles from here. I don't trust the online thing. Oh well. Maybe I can sneak off this weekend if the pot keeps growing. Good luck All! NIta

Bradly_60Jul 1, 2004, 9:14 pm

In the last drawing almost 60% of all the combos were bought. With they hype this huge jackpot is getting (which by the way makes the game more fun) I say 70-80% will be bought for this Friday's drawing. Slim chance that their will be a rollover. But just one more rollover means the highest lottery jackpot ever. Just one more. It took over two years to get even close to the $500 million that they once projected. Very unlikely it will happen again soon. SO JUST ONE MORE ROLLOVER...haha. Expected the odds to increase in the next couple months. If they do then we will see the jackpots they once projected. BUT FOR NOW JUST ONE MORE ROLLOVER! LETS BEAT THAT BIG GAME RECORD! haha

Brad

golottoJul 1, 2004, 9:30 pm

i wonde

Tx_Mega_PlayerJul 1, 2004, 9:45 pm

Quote: O

ManaJul 1, 2004, 9:46 pm

*peers in from lurker world*

... heehee ...

... we haven't heard from good o' jackie for a while :sweatdrop:

tg636Jul 2, 2004, 12:41 am

If you show me some good evidence that you could make the amount of the annuity by investing the lump sum, I would be a believer. Assuming taxes get 35% of the lump sum and 5% of what's left goes to spending and enjoying your money, then you start off down 40%. So you have to make that 40% back just be get back to where the state starts off investing the annuity. The state takes the same lump sum and invests it without having to pay the 35% taxes the winner does, which is why it seems to me the annual annuity check is more than you could make over the same period of time. So it seems like it would be hard to make that 40%+ back...and while you are sweating out those riskier high-return investments and checking every other day to see how much you are making, you have 95% of your money tied up and you aren't focused on enjoying life. My main reason to take the annuity is that I don't want to be watching my investments or paying investment fees...I want to be on a beach somewhere having fun. I'll let the state invest it safely for me, put what I won't be needing each year into low risk bonds and such, and think about something other than money.
There are good reasons for taking the lump sum, but they don't have to do with financial return. You don't care if you don't make as much as the annuity would pay; You love investing; inflation will eat away some of the money over time; they could change the tax code to soak the rich and you could pay a lot more in taxes in a few years; civilization as we know could end in 5 years, so you want to live it up; you might have project or purpose that requires a lot of money right now; it ends your dealings with the state and IRS and makes you feel "free" and in control. Depending on how important these reasons are to me when (not if!) I win, I might take the lump sum myself.
Do you have any sites or articles that show the lump sum is better for financial return? Any actual lottery winners' case studies where they made more than the annuity? If I'm wrong about this, so be it, I'm no expert. I'd like to read more about it and see if my logic holds up.
I haven't heard anything about the new megabucks. Mass Millions supposedly ends in September, so I would expect an announcement by then.

Quote: Originally posted by CASH Only on July 01, 2004

tg:
Not if they won an annuity.
Any news yet on a new version of Megabucks?

joeyblakisJul 2, 2004, 12:54 am

Let's say some one wins the jackpot ( In NY) this Friday and takes the lup sum option. How much of the jackpot will he or she get if for example the jackpot stayed a 300 Mil.? (after Taxes and such)

tg636Jul 2, 2004, 12:58 am

http://www.biggamelottery.com/jackpot.htm

According to this, the NY net lump sum payout: $111,766,000.

joeyblakisJul 2, 2004, 1:01 am

Thanks, that's a great link to keep handy

grayfoxJul 2, 2004, 3:56 am

WOW It's almost 4am and I can't sleep at all! The anxiety is overwhelming as I ponder how much of my remaining money to use for tickets. I have roughly $350 but do I go ahead and make the plunge and put all my remaining money and hopes into this chance of a lifetime, or do I go more conservative and purchase 100-150 tickets just in case it rolls over again. I still have plenty of hours to think it through and decide on which choice. My adrenaline rush is incredible, though I'm not sure it's adrenaline it could just be the sheer nerves making my heart race at such speeds. Either way I'm hoping for a miracle, not just for me but for other peaple who would put this money to good use and to benefit others as I know I will.

Good luck to everyone,

Ralfy

vincejrJul 2, 2004, 5:48 am

Quote: Originally posted by grayfox on July 02, 2004

WOW It's almost 4am and I can't sleep at all! The anxiety is overwhelming as I ponder how much of my remaining money to use for tickets. I have roughly $350 but do I go ahead and make the plunge and put all my remaining money and hopes into this chance of a lifetime, or do I go more conservative and purchase 100-150 tickets just in case it rolls over again.

Dude,

If you are having those kinds of thoughts and deliberations, maybe it's time you made another choice---don't play at all. You are talking about spending all of your remaining cash for a 1 in 134+ million shot at winning a jackpot? What happens when you don't win (or win a much smaller amount) and are broke until your next payday?

Lotteries are fun to play and can be a little intoxicating when the jackpots are this high, but remember one thing it's just a game! Play early, play often, but play responsibly!

Vince Jr.

tg636Jul 2, 2004, 10:03 am

$350 is way too much to spend on one drawing. Please, only get a couple and use the $350 to buy 1 for each drawing for the next 6 years - unless you are doing a test to see how brutal the odds are. I have 3, up from my usual 1. $290 mil is a huge amount of money, but winning even the lowest jackpot would change your life almost as much. Don't blow it all now - if nobody wins, what are you going to do next week?
>WOW It's almost 4am and I can't sleep at all! The anxiety is overwhelming as I ponder how much of my remaining money to use for tickets. I have roughly $350 but do I go ahead and make the plunge and put all my remaining money and hopes into this chance of a lifetime, or do I go more conservative and purchase 100-150 tickets just in case it rolls over again. I still have plenty of hours to think it through and decide on which choice. My adrenaline rush is incredible, though I'm not sure it's adrenaline it could just be the sheer nerves making my heart race at such speeds. Either way I'm hoping for a miracle, not just for me but for other peaple who would put this money to good use and to benefit others as I know I will.
Good luck to everyone,
Ralfy

grayfoxJul 2, 2004, 11:10 am

Got back a few minutes ago, I split $120 between 3 different terminals. As I think about the odds of such lottery I try and stray and not let my conscience fully grasp the near impossibility of me winning this thing. But one chance in hell is still one chance and that's good enough odds for me. I hope I as well as other people get lucky tonight, It'll be nice to win all this money but I'd sure be even just as happy if more people shared the prize. Besides, who would want the the paparazzi knowing every move you make as happened to Jack Whitacker.;)

Good luck everyone,

Ralfy

whodeaniJul 2, 2004, 11:13 pm

Quote: Originally posted by tg636 on July 02, 2004

If you show me some good evidence that you could make the amount of the annuity by investing the lump sum, I would be a believer. Assuming taxes get 35% of the lump sum and 5% of what's left goes to spending and enjoying your money, then you start off down 40%. So you have to make that 40% back just be get back to where the state starts off investing the annuity. The state takes the same lump sum and invests it without having to pay the 35% taxes the winner does, which is why it seems to me the annual annuity check is more than you could make over the same period of time. So it seems like it would be hard to make that 40%+ back...and while you are sweating out those riskier high-return investments and checking every other day to see how much you are making, you have 95% of your money tied up and you aren't focused on enjoying life. My main reason to take the annuity is that I don't want to be watching my investments or paying investment fees...I want to be on a beach somewhere having fun. I'll let the state invest it safely for me, put what I won't be needing each year into low risk bonds and such, and think about something other than money.

Whether you take the lump sum or the annuity, you are going to be set back 40% because of taxes. The only difference are you going to pay all the taxes now or spread it out over time. So saying you will be starting from behind by taking the lump sum is not really true. Uncle Sam and the state gov't will also be holding their hands out for 40% taxes every year if you take the annuity. I am no tax guru but I think you would actually pay more taxes on that money taking the annuity. Based on the jackpot analysis at biggamelottery.com, if you take the lump sum you will pay a one-time tax bill of roughly $45-50 million (federal and state) depending on where you live and less in a state in no state income tax. Then when you do your taxes the next year you will probably owe another 10% because only 25% is withheld. So add about another $15 million for a total of somewhere around $60 million.
If you take the annuity your annual payments will be somewhere around $11 million on which you will pay roughly $4 million in taxes (federal and state) every year. You get 26 annual checks. That is $4 million every year for 26 years ( $4 million X 26 = $104,000,000). Like I said I am no financial guru so I could be wrong but seems to me that you would pay about $40 million more in taxes by taking the annuity. So if you don't enjoy paying taxes you may want to take the cash.
Also I read an article about lottery winnings and taxes sometime back. In the article there was a financial advisor who said that if you take the annuity and you die (sorry, don't mean to be morbid) during the 26 years, any money that is still due is an asset and is part of your estate. So if you still have $150 million coming to your estate, your estate owes estate taxes on that $150 million and it becomes due immediately! That could be millions upon millions of dollars you may not have sitting around even though you have been getting big checks every year. Something else to think about.

whodeaniJul 3, 2004, 12:02 am

I forgot to mention in my post above that the taxes you would pay on an annuity vs. a lump sum are based on two different amounts. $290 million for the annuity and $165 million for the lump sum so naturally you will pay more taxes on the annuity. I thought I would mention this to fair in my analysis. I was just looking at it in terms of just paying taxes on winnings regardless of what the winnings may be. Even though $290 million is much more than $165 million, I would feel a heck of a lot better taking the $165 million now and giving less to the government than taking the $290 million and paying more in taxes. Paying $60 million in taxes just sounds a heck of a lot better than $104 million and after all who enjoys paying taxes?

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$290 MILLION:" Mega Millions lottery jackpot increased

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