Hoping this is a decent forum to ask about lottery winnings (taxes, income)

[Lowexpectations]

Originally Posted by David A Stone

If it is Power Ball she is talking about, the $1 Million prize is for getting 5 numbers right, but not getting the Power Ball number correct.


On any prize besides winning the entire Power Ball, there is no annuity option.


The prize for getting 5 numbers correct but not the Power Ball number is $1 million and paid in one lump.


($2 Million if the $3 ticket was selected )


So, her husband saved $1 on the ticket purchase but lost out on an additional $1 million


......."PENNY WISE AND POUND FOOLISH ........


I always buy the $3 ticket.

Talk about Monday morning quarterbacking. They wouldn't offer it to you if it was a good deal

[David A Stone]

Originally Posted by Lowexpectations

Talk about Monday morning quarterbacking. They wouldn't offer it to you if it was a good deal

Monday morning quarterbacking ?


I stated ....."I always buy the $3 ticket "..and am farther ahead than if I buy the $2 ticket.


Every time you match 3 or more numbers ( or the Power Ball) you win a smaller prize.
With the $3 ticket that smaller prize is multiplied by 2,3,4, or 5.


Yes, I have won more by spending that extra $ than if I had saved that extra $.


Surprised you never figured that out !

[johnd393]

Don't spend it.

[Lowexpectations]

Originally Posted by David A Stone

Monday morning quarterbacking ?

Calling someone penny wise for not spending more on lottery tickets after they've won is

I stated ....."I always buy the $3 ticket "..and am farther ahead than if I buy the $2 ticket.

No you aren't further ahead

Every time you match 3 or more numbers ( or the Power Ball) you win a smaller prize.
With the $3 ticket that smaller prize is multiplied by 2,3,4, or 5.


Yes, I have won more by spending that extra $ than if I had saved that extra $.


Surprised you never figured that out !

That's not how the lottery works and I highly doubt your accounting records and p&l statements are up to par

[David A Stone]

Originally Posted by Lowexpectations

Calling someone penny wise for not spending more on lottery tickets after they've won is




No you aren't further ahead





That's not how the lottery works and I highly doubt your accounting records and p&l statements are up to par

you don't have a clue, do you ?

[Lowexpectations]

No no I do have a clue


https://medium.com/starts-with-a-ban...5a6#.qrchvnme0

[David A Stone]

Originally Posted by Lowexpectations

No no I do have a clue


https://medium.com/starts-with-a-ban...5a6#.qrchvnme0

Not long ago I got ONLY the Power Ball.


$4


But I bought the $3 ticket and the multiplier was 3x so I won $12
Thus I won an additional $8.

Being the drawing is twice a week, I now have enough money to pay that extra $1 for 4 weeks.


and in those 8 drawings I usually will win something.


Would people pay $2 for a ticket and be told if they win, they only get half the jackpot?

NO !

So why do people only buy the $2 ticket and only get half of the 2nd prize ?


Every drawing the number of winners is listed and what state they are from for the jackpot and the 2nd biggest prize.


Yes, on the same day as there being one winner from Texas listed as a $1 million winner, there was also one winner from Texas that won $2 million


A $1 million difference in prize money
A $1 difference in ticket price.

[Lowexpectations]

Originally Posted by David A Stone

Not long ago I got ONLY the Power Ball.


$4


But I bought the $3 ticket and the multiplier was 3x so I won $12
Thus I won an additional $8.

Being the drawing is twice a week, I now have enough money to pay that extra $1 for 4 weeks.


and in those 8 drawings I usually will win something.


Would people pay $2 for a ticket and be told if they win, they only get half the jackpot?

NO !

So why do people only buy the $2 ticket and only get half of the 2nd prize ?


Every drawing the number of winners is listed and what state they are from for the jackpot and the 2nd biggest prize.


Yes, on the same day as there being one winner from Texas listed as a $1 million winner, there was also one winner from Texas that won $2 million


A $1 million difference in prize money
A $1 difference in ticket price.

Mathematics isn't your strong suit

[David A Stone]

Originally Posted by Lowexpectations

Mathematics isn't your strong suit

Educate me then


How many people would take a 1/3 discount on the price of a ticket knowing if they won they would only get 1/2 of the prize?


That is exactly what happens if you win the 2nd prize and the odds are a lot better to win the 2nd prize than winning the jackpot.

[Lowexpectations]

Originally Posted by David A Stone

Educate me then


How many people would take a 1/3 discount on the price of a ticket knowing if they won they would only get 1/2 of the prize?


That is exactly what happens if you win the 2nd prize and the odds are a lot better to win the 2nd prize than winning the jackpot.

The link I posted goes through the math for you in a very detailed fashion