The lottery, something millions of people wish for. Often, the first thing that comes out of their mouths when asked what they want out of life. This might play into the fact that one third of Americans feel as though the only sure way to attain financial security is to win the lottery. For the most part, many don’t quite understand what comes with winning the lottery entirely.
When stopping by any local gas station and some stores, you’ll see a jackpot amount in the windows of the store. This amount alone might be good enough to get the wheels spinning in hopes of winning the big pot, or even some of it. Should you win a large amount of money, you’ll have a big choice to make; will you take the lump sum or the long-term payment. For some, this question is answered dependent upon how much the winnings are.
In short, taking the lump sum has it’s pros and cons. Players will be giving up a portion of the money at the current tax rate which could be higher or lower in the future. Taking the lump sum means that the jackpot of $10 million would equate to $5 million in cash but really only $3 million after taxes. With this route, some are happy with the lower amount especially knowing that the tax money goes toward good causes such as the public school system.
Going long-term, same deal here too. You could find solace in knowing that you’ll have a steady stream of income year after year until the end of life. However, the annual payout is not adjusted for inflation so this means that the money because less valuable each year. Each state is different, some states allow the winnings to continue to be paid out to relatives, other states do not.
The biggest lottery winner in history was a player from Chino Hills California. Earlier this year a jackpot of $1 billion was paid out to the unsuspecting winner! Previous jackpots haven’t been this large and They are usually split between multiple people so this was a huge win for this particular player. Each of the states have a different set of odds however the big Lottery has the odds of around 175 million to one!
In comparison to winning the lottery, a player has the odds of just 25 million to one when it comes to dying in a plane crash. A car accident? 5,000 to one. Don’t sleep in your bed anymore if you’re worried about the 2 million to one odds. Don’t let these odds scare you, but if you take a bath, there is a 840,000 to one chance that you might drown. Lightnight strikes you might ask? 2 Million to one! Okay, let’s be more positive. The best odds? Dating a super model! Just 88,000 to one. Hitting a royal flush in Poker? 649,740 to one.
As you can see, your odds of dying in a horrific way are much higher than they are when it comes to winning the lottery. But, if you’re a believer and you feel as though you’ll become the next jackpot winner, by all means play the lottery!