Saturday’s huge Powerball jackpot promises to be the largest lottery prize in US history — and the jackpot total could reach up to $800 million.
The record-breaking $700 million to $800 million Powerball jackpot is the stuff of dreams, and it all boils down to math. Saturday night’s drawing is a numbers game that gives players good reason to brush up on their algebra, maybe as they stand in line to buy a ticket.
Here are some tricks to increase your odds, and how much you’d end up with if you won.
Players’ odds of winning increase with additional tickets, but it’s important to keep in mind how small they are to begin with. If you have a 1 in 292.2 million chance of winning with one ticket, you have 10 times the odds if you buy 10 tickets.
Another trick — Scott A. Norris, an assistant professor of mathematics at Southern Methodist University, says your tiny odds of winning are a bit better if you let the computer pick rather than choosing yourself. That’s because when people use birthdays or other favorite figures, they generally choose numbers 31 or below. That ignores the fact that there are 69 numbered balls.
But it’s important to remember that despite these strategies, the probability of winning is still incredibly small.
“The odds are so astronomically small that even 100 times that number is exceedingly unlikely to win,” Norris said. “It’s probably still not going to happen if you buy a hundred tickets or a thousand tickets or even a million tickets.”
If you have lots of extra cash and are thinking of buying all possible number combinations, that is allowed, but it wouldn’t be very smart. At $2 a ticket, the strategy would cost about $584 million, and when taxes are subtracted, you’d end up losing money.
And if someone else had the winning numbers, you’d need to split the prize. You’d make back some of that money by smaller prizes paid for matching three, four or five of the balls plus the Powerball, but chances are it still wouldn’t be a good bet.
If you match all five white balls and the red Powerball, you can choose to have the $700 million to $800 million jackpot paid out over 30 years or as an immediate $428.4 million in cash.
Of course, those figures are before federal and state taxes. How much would be left over for you? USMega calculated the taxes by state, which you can see here.
Ticket holders have a 1 in 292.2 million chance of winning. To put that in perspective, the odds of hitting the jackpot are about the same as your odds of flipping a quarter and getting heads 28 times in a row, said Jeffrey Miecznikowski, associate professor of biostatistics at the University at Buffalo.
“The probability is so small, dare say impossible,” Miecznikowski said. “It’s like trying to count electrons or drops of water in the ocean or grains of sand in the world. We just can’t imagine these types of things.”
No one has won the Powerball jackpot since early November, which is why the prize has grown so large. The bigger prize entices more people to buy tickets, and that drives up the jackpot. The increased ticket sales also make it more likely there will be a winner, simply because all those extra tickets mean more number combinations are covered.
Despite the odds, someone will eventually win the prize. What then? Is it better to take the money as an annuity or in cash?
Olivia S. Mitchell, a professor of insurance and risk management at the Wharton School at the University of Pennsylvania, said to avoid the risk of overspending or an investment mishap, a safe option would be to take the annuity, guaranteeing a huge annual payout for three decades.
“We know the average American is quite financially illiterate,” Mitchell said.
For those who want to invest the money themselves, Mitchell suggested setting aside part of the cash option to buy their own annuity that would give them a guaranteed income in case the return on the money they do invest comes up short.
“That way, you still might not beat what the state pays,” she said. “But on the other hand, you’ve protected your basic consumption needs.”
The Associated Press contributed to this article
Take the dough. If you die in a year, the state keeps it all. Your family gets zero.
thats not true if you win and choose 30 year payments,and you die early the money that that is ieft goes to your estate ..
then there is an inherit tax and gov’t dips their hands again into the winnings
take the 400’000’000$$$$ write a will and the government can’t take a dime more than the death tax !!! invest wisly and you may leave more than you won !!!
I hear people say lump sum but if you take the annuity you garrente you self a steady income you also have the next year to correct your mistakes at the high Yearly amount you can invest that as well securing your family a healthy living after you leave this place behind
Yeah, that’s IF the state or government doesn’t crash & burn – considering the economy we’re teetering around with these days – TAKE THE CASH!
IF you live in ILLINOIS, you are given an IOU !!!!! And that is not a LIE !!! THEY ARE SO BROKE they are not paying out any large winnings at ALL !!!!! They just give out a useless and valueless IOU for any large jackpots !!! Another reason not to live in a ”democratic run” state these days !!! They take it, they do not give it back, even when they SHOULD have all their bases covered as far as that money goes !!! I just wonder …. WHERE does all of that money go that people spend on the lottery, instead of where it SHOULD go to cover winners ???
It’s the power balls money, what they get from ticket sales, no matter how broke the state is, states have nothing to do with the money, they get there share in state taxes,
From what I understand the states and government are using all monies that come in including our social security monies that’s why we on social security don’t get annual raises.
I agree with that. Why would you want the state to have it. All they’ll do is waste it on some stupid crap.then again,it could find it’s way into peoples pockets.
These are the things that dreams are built on. History will tell us that so many folks come out of the woodwork when you have won big bucks. As a mid-70’s senior citizen, I think I will take it all so I might have a bit of time enjoying it. Indeed I will share with my family before I kick the bucket. Happy Winnings!
Yea..cash ? are you kidding! Just try to get “CASH” if you win. They want to give you a piece of PAPER with numbers on it !
better a certified check than so much cash that you can’t pack it into a suitcase and tote it home or your bank not to mention all the thieves out there waiting to relieve you of your cash !!!
Being 65 and not in great health, I would take the smaller amount. What to do with it? I surely do not want to put it in banks or the stock market! What is left? In banks or credit unions they will only insure a small amount…What to do…IF I win!
buy land for you and your family !!!
You got that right!!! Start a corporation-S and put all the money into the corporation, it owns everything,
Assign 5 or 7 family members as trustees with written bylaws of operation.(I have 36 heirs not counting spouses and step children.) Furnish housing and utilities with a reasonably salary for their life plus their heirs. Buy 20,000 acres of land to start, build some houses on it and with all accessory buildings. Start a through-bred cattle ranch and give family members an opportunity to make their living there for the next ten generations. Family members have an opportunity to choose how they will contribute to the sustainability and viability of the operation. Trustees affirm that they will work with other trustees in those efforts. No one lives big at the expense of all. Family members not desiring to join now are open to join at anytime later as well as any generational member later on. Most everyone at some time in their life will need to make changer. So everyone is welcomed at some point in their life to join the operation and help it survive for their Great-Great-Great-Grand-Children.
Ever wonder who is getting rich off of “Lotto” I remember when there was only one lotto scratcher game. Now almost every state has multiple games. That could only happen if they were making money. Sad part is the people never hear what happens to the states and federal governments share on the games.
2 words come to mind – CORRUPTION – GREED
2 Answers from Lotto administration can be heard.
DECEPTION – LIES
Don’t know about your state, but ours uses it to defray property tax.
Enjoy the game as long as it lasts – you can’t win if you don’t play.
ENJOY BIG GOVERNMENT TAKING YOUR MONEY WITHOUT REPRESENTATION –
If you’re playing the lottery, you’re freely GIVING your money for the chance of getting a lot more back. If nobody’s playing the lottery, Government is TAKING more from everybody with no returns.
Stop this nonsense of manipulation and abstract theories.
Buy 1 powerball ticket and feel like you enjoyed an ice cold cocoa cola can that you will drink relish and later pee out of your body.
In the same way when you bought this ticket you will have the feeling I bought it and have dreams of being the winner and enjoy in mind whatever you’d do with the pile of money you get and spend it wisely. If you did not win, forget it and be happy you spent $2 and had fun thinking I will be a winner and be rich and have a good time in my life!!!
If more of us had your attitude, we could get together and figure out a way to restructure our country with our original forefathers constitution!
Remember the big winner is the U.S. and State Governments and they don’t have to buy a ticket. Just think, Obama could stay on vacation for the next year if you win the lottery. The odds of finding Black Beards buried treasure on the outer banks of NC are better than winning the lottery. May I suggest buying a backhoe and start digging. Good luck.
I don’t live anywhere near the East Coast and a ticket is cheaper than a backhoe.
I do not get why the state takes such a huge amount for getting a lump sum from your winnings. It is most unfair. They have received the seven or eight hundred million already so why not award the full amount rather than half the amount and then take the taxes out. I am very supprised that no one has challenged this in court. By taking the thirty year annuity the state or government only pays out interest and never touches the principal. What a scam.
Hey, everybody wants to tax the rich. If you win the big one, congratulations! You’re in the 1%!
the fact is less than half of the money used to buy a ticket goes toward the prize jack pot so the “”big “” amount is based on the interest earned over 30 years on the lump sum $$$ that you can take all at once !! so the real question is do you want to get around 50’000’000 $$ a yer for 30 years or around 400’000’000 $$$ all at once ???1 /12 of 50 is around 4.1666
I WOULD TAKE INSTALLMENTS OVER 30 YEARS ,,TAKE GOOD CARE OF MY FAMILY ,,GIVE SOME TO ST JUDE AND CHILDRENS HOSPITAL
AND YOU WOULD STILL HAVE ENOUGH LEFT TO LIVE VERY CONFORTABLE ,,
GOOD LUCK TO ALL THAT BUY
I’ll take the cash or a piece of paper with numbers on it , it’s all the same.$$$$$$$$$ good luck…. To me
The lottery is a tax on the ignorant.
Lets correct HEUA statement. If you die the state does NOT get the money. Your estate will get it. I hope that the first thing that you do is get a good lawyer and set it up.
Further, take the payments so that you can have something to pass along. If you can’t live very well on 20 million a year and still give some to family or friends you are seriously in trouble. If you don’t have family to pass it on to then you can take care of that in you will. If you took all of the money there is a good chance that you would be coned or cheated out of it somehow. With payments you would always have more coming in.
If you take the lump sum, you get the interest on it. If you take the annual payments, the state gets the interest on the “lump sum” (especially if interest rates rise) and just sends you a piece of the principal.
I don’t have enough money to buy enough tickets to even come close to winning It’s always some rich person whom don’t need the money or is always fighting against poor or retired seniors who could use a portion of the jackpot to make life a little better for their families. The rich are always fighting to get rid of the social security so the old will just die off for instance this year the government said there would be no rises in S.S. because there was no change in the cost of living. Someone isn’t looking at the price of food and medical prices or they just don’t give a damn. The government is made up of Demoncrats and Flubupikens who don’t care about the ones who actually made this country great and that is the hard working seniors who made money for the corporate owners and money for that helped others get a college education all from the backs and minds of the every day worker. I think it’s terrible how they can Just lie to keep the retired working men and women in pure poverty or darn close to it. we need someone whom is honest and cares for all people in this country and quit giving all we have paid in to foreigners and other nations and stop using our money to fight stupid wars that means nothing to the Americans. These wars are only to keep the rich even richer or more wealthy. So why do we need a government that can be bought by the super rich anyway?
People who can’t afford to buy tickets obviously aren’t going to win the lottery. Upper middle class can spend more on the lottery than working class, so the numbers say they’ll get more jackpots, but plenty of “working-class stiffs” have hit the big ones.
And for the record, I’m not rich, or even self-supporting, and I think Social Security was one of the stupidest pieces of legislation ever enacted. Part of my paycheck, instead of being available to me to invest or buy things to keep my life going, gets thrown into some fund that might not even be there by the time I get to collect on it, and if it does, has less buying power when I get it out than it had when it went in.
Wendy, You are 100% correct !!!
These frigging legislators. now exactly what they are doing to you and me. we the people put them there and they tell us f,,, you stupid SOB.s I am getting rich on your stupidity .You all know they are thieffing slime balls, and you and I let them get away with it .How can you be a Senator and make about $170.000 thousand a year with all the perks we Pay for . and become after 4 Years in office A stinking Milonaire. all these so called Reino:s are exactly the same They stand there and call every body a crook and I am looking after the folks .And after a few months in office they are doing the same F up job and screw the Peasants you and me They take us for a fool we really are in a way but not stupid (look at Paul Ryan what a dissapointement. I SAY IT AGAIN NO MORE SLIME BALL SLEAZY LAWYERS Go MR . TRUMP WE TRust you and clean this stinking sesspool up .From the top on down ON both SIDES . A Independant (Formally REBUB SHIT.
I have heard that if one takes the annuity and dies before the end date, the balance is not given to your estate as it should be. Is there any truth to that statement? Another question: if one does take the annuity option, is the entire amount ($800 million, etc) taxed at that time or is taxed only on the amount withdrawn each year?
Not sure. Probably taxed as you get it. But my mother (over 25 yrs. at H&R) assures me you’re pretty much guaranteed and audit, no matter how you take the money. So have your last seven years ready, if you plan to win.
If I would win it. I would take my brothers and sisters along to claim it. And a couple good friends.
Unless you are a mental retard that won – TAKE the cash!!! Who knows if they can pay out in 30 years?
Actually, it’s not only possible to buy every ticket, it’s been done (almost). A pool managed to raise enough money to buy every ticket in the (I think it was a Viriginia) lottery (except for a few hundred numbers when a vendor backed out at the last minute). And since buying every ticket also includes hundreds of smaller jackpots, an $800 million jackpot might be big enough to invest in. Anybody interested?
Go do your calculations,you stupid!
Don’t throw your hard earned money away on this stupid Jackpot that is almost impossible to win.
Those who have won in the past were either millionaires already or ended up broke due to poor
investment decisions or spent all their money unwisely.
This money should be spread among the middle and lower class where it would do a lot of good
for the people and the economy.
I am a New Zealand resident, so while my comments are local, they have a global perspective. Google my country if you are unfamiliar with it? Many of your comments are logical, however, ignoring points such as “will the government be there during 30 years to be able to pay out” here is my suggestion. Form an offshore Trust, and several more Trusts for succeeding kids, grand kids and great kids and more down the line, so that no actual “child” receives the money, their relevant Trust does. They still have the same use of the money by borrowing off their Trust…knowing they will never call in their ‘own’ debt.! Then, you can approach various institutions (and privateers) “worldwide” and borrow off the remaining forward-annuities. There can also be a number of tax advantages by using Trust structures. Most people are unaware of the benefits of such Trusts, an exception being your very own politicians, which is one reason why USA / Offshore Trusts have existed for so long ! So you really only need to decide how much you need to have to have a fantastic lifestyle….or, you can search for some good advice on there Trusts, and enjoy some informed fun creating even more money. Greed and fear are two main factors where money is concerned, so heed the warning. My website may be able to guide you to an experienced source? moneybiz.co.nz
WOW,WHY WORRY ABOUT ALL THAT UNLESS YOU WIN.I WOULD BE GRATEFUL FOR ANY AMOUNT i WOULD GET AND WOULDNT WORRY ABOUT THE TAXES. ITS STILL MORE THAN WHAT I HAVE NOW.
your odds are always 50/50–either you win, or you don’t
I think wanting to be a million air is fine, but very illogical. Invent some thing new, Or go mining for gold or gems is just as likely to make you a million! Hard work will get you there faster! The lottery is nothing but fun!
“Who knows, who cares..”
As Warren Buffet would say, take the money and run. The way the feds over spend it won’t be worth much in 10, 20, 30 years
In Canada, Lottery winnings are tax free and the amount advertised is the amount one is paid. If I bought a ticket for a 100 million dollar jackpot in Canada and won, I would receive 100 million dollars tax free.
Well when you start talking about Social Security, it was probably going to be okay. Then they add Medicare ,Medicaid, Welfare, and unemployment. That’s when all these drug company and others saw all the money they could make at the cost of us poor people. Of course our government did nothing to try and control the prices of everything. so that leaves us with the mess we have now. An they could care less about us poor people. so we can do nothing about it No election is goingg to change, that, it to late. So buy your ticket and keep on hoping you might win. and if you do, Take it however you want. spend any way you to. But you ca always say you won a big one. Good luck and I hope who ever wins needs it. And GOD BLESS!
If I win I will give much of the money to Obammy Mammy but only if he promises to use the money to go on vacation until the end of the year. That way he cannot screw up this country more than he did during the first 7 years of his deplorable dictatorship.
I would help my friends and family, and buy a few small business that are green like autotech inovations and maybe some
property like the Ketchum estate in central NJ near Mendum
Life will change if you win. Invest some and spend the rest. Put some in the area charity, Church and Invest in your family and friends. It will never be the right amount for family and friends no matter what you give them. So it would be best to get the annuity and get a check each year. The Total amount would be a waste if everyone find out you have the money. May god bless you.
PS if I got that type I could invest in other things and the give some to my charity group (Self, Churches, Family, Friends, and a few Charity organizations}.
I am a New Zealand resident, so while my comments are local from here, they have a knowledgeable global perspective. Google my country if you are unfamiliar with it? Many of your comments are logical, however, ignoring points such as “will the government be there during 30 years to be able to pay out”, here is my suggestion. Form an offshore Trust, and several more Trusts for succeeding kids, grand kids and great-grand-kids, and more down the line, so that no actual “child” receives the money, their relevant Trust does. They still have the same use of the money by borrowing (interest-free) their money off their Trust…knowing they will never call in their ‘own’ debt.! Then, you can approach various institutions (and privateers) “worldwide” and borrow off the remaining forward-annuities,…diversification. There can also be a number of legal tax advantages by using Trust structures. Most people are unaware of the benefits of such Trusts, an exception being your very own politicians, which is one reason why USA / Offshore Trusts have existed for so long ! So you really only need to decide how much money you actually need to have to enjoy a comfortable lifestyle….or, you can search for some good advice on these Trusts, and enjoy some informed fun creating even more money. Greed and fear are two main factors where money is concerned, so heed the warning. My website may be able to guide you to an experienced source? moneybiz.co.nz
I think I would attempt to fix the grotesque state of nursing homes in America…the care of our elderly father’s / mother’s / bother’s & sisters is rediculously neglectful! Rought with unmotivated employees that are lasy and administrations that are subperforming. In addition working for homeless systems that have a beginning and a process for people’s health & return to prodctive lives through sustaining the basics while focusing on education and job placement in a non profit setting backed by professional donations of time by those in the medical field and education.