<div _ngcontent-c14 innerhtml="

The jackpot for the August 23 Powerball drawing will probably top $700 million. Your chance of getting all the numbers is 1 in 292 million. So each ticket is worth $2.40?

Not quite.

(AP Photo/G-Jun Yam)

Three factors rip up the value of a ticket. (1) If you win, you’ll owe taxes at top rates. (2) The posted jackpot value is fake; if you don’t agree to payments in installments, you get a lot less. (3) There’s a distinct chance you’ll be sharing the pot with one or more other winners.

One small thing working in your favor is that the smaller prizes for getting some of the numbers are worth something. They add 27 cents to your expected payout, aftertax.

I’ve got a calculator that lets you figure out how bad your investment is. A ticket is worth maybe 94 cents in an average state. It’s worth a few cents more if you live in a state like Florida or California that doesn’t tax lottery winnings.

Here’s my lottery calculator.

” readability=”23.262711864407″>

The jackpot for the August 23 Powerball drawing will probably top $700 million. Your chance of getting all the numbers is 1 in 292 million. So each ticket is worth $2.40?

Not quite.

(AP Photo/G-Jun Yam)

Three factors rip up the value of a ticket. (1) If you win, you’ll owe taxes at top rates. (2) The posted jackpot value is fake; if you don’t agree to payments in installments, you get a lot less. (3) There’s a distinct chance you’ll be sharing the pot with one or more other winners.

One small thing working in your favor is that the smaller prizes for getting some of the numbers are worth something. They add 27 cents to your expected payout, aftertax.

I’ve got a calculator that lets you figure out how bad your investment is. A ticket is worth maybe 94 cents in an average state. It’s worth a few cents more if you live in a state like Florida or California that doesn’t tax lottery winnings.

Here’s my lottery calculator.

Originally published at Forbes

Do NOT follow this link or you will be banned from the site!
error: Content is protected !!