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Mega Millions' annuity jackpot now larger than Powerball's...

Topic closed. 4 replies. Last post 3 years ago by markp1950.

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Morrison, IL
United States
Member #4657
May 13, 2004
1884 Posts
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Posted: October 19, 2013, 10:56 am - IP Logged

...given any cash jackpot level.  This is because, like Powerball, Mega Millions now pays its advertised jackpot in 30 graduated installments (over 29 years).  HOWEVER, Powerball's payments increase by only 4% each year, while Mega Millions' now increase by 5% each year (Source: http://www.megamillions.com/how-to-play ), meaning Mega Millions can fund its annuity jackpot with less cash than Powerball can.  It's no wonder Mega Millions can justify an opening jackpot of $15 million (when its opening cash jackpot will not change much), with minimum increases of $5 million, even given their lousy ticket sales recently!!

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    Pita Maha's avatar - 940d8157 d1fb-4f70-a715-6ad04d915489.jpg
    SW Florida
    United States
    Member #145673
    August 11, 2013
    152 Posts
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    Posted: October 19, 2013, 2:10 pm - IP Logged

    Very interesting. Thanks.  However, I'd still take the lump sum.


      United States
      Member #130815
      July 25, 2012
      1636 Posts
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      Posted: October 19, 2013, 7:58 pm - IP Logged

      ...given any cash jackpot level.  This is because, like Powerball, Mega Millions now pays its advertised jackpot in 30 graduated installments (over 29 years).  HOWEVER, Powerball's payments increase by only 4% each year, while Mega Millions' now increase by 5% each year (Source: http://www.megamillions.com/how-to-play ), meaning Mega Millions can fund its annuity jackpot with less cash than Powerball can.  It's no wonder Mega Millions can justify an opening jackpot of $15 million (when its opening cash jackpot will not change much), with minimum increases of $5 million, even given their lousy ticket sales recently!!

      It would be nice to get that money every year...you know guaranteed check in all, but how could you resist ot taking all of it at once...I dont know that I could trust that I'd get the 5% every year

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
        United States
        Member #136477
        December 12, 2012
        4105 Posts
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        Posted: October 19, 2013, 11:52 pm - IP Logged

        Show me the 

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          Milwaukee, WI
          United States
          Member #3131
          December 27, 2003
          665 Posts
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          Posted: October 20, 2013, 10:23 am - IP Logged

          Sorry the government is closed and bankrupt. You don't get the rest of your money........