Another example of US taking scamming to a new level. Just checked euromillions and 20mil means 20mil, lump sum, no annuity and in some countries no taxes.
I think you are splitting hairs regarding the net present value (cash value) and the annuity payout (advertised value). However what you haven't included are the tax consequences. Winning will be considered ordinary income by Federal and State (if applicable). That brings the NPV of winning to about the 1/3 of the advertised value or less.
TBH, seems that the "advertised value" is the wisest choice for people who are financially inexperienced with large amounts of money especially in today's interest rate environment
While I know lotteries are just a “tax on people who are bad at math”, I still play on occasion. Only when the jackpots are huge (Canadian Context >$40 million, cash value) and often on some memorable occasion. There are lots of worse things to spend $10 on.
It really depends. Funds where I live mostly go to community projects so actually I treat it as mostly a donation. It's obviously not the only donations I so but it's the only local ones. And if I do win something that's more than 3 figures I'll donate that too, I just know it's very unlikely.
Personally, I think there should be a cap on jackpots of like 100x median annual wage. Makes no sense to give 100s of millions to one family, they'll likely to blow it on unnecessary things, would be cooler to have more winners with still very life hanging amounts.
Another example of US taking scamming to a new level. Just checked euromillions and 20mil means 20mil, lump sum, no annuity and in some countries no taxes.
I think you are splitting hairs regarding the net present value (cash value) and the annuity payout (advertised value). However what you haven't included are the tax consequences. Winning will be considered ordinary income by Federal and State (if applicable). That brings the NPV of winning to about the 1/3 of the advertised value or less.
TBH, seems that the "advertised value" is the wisest choice for people who are financially inexperienced with large amounts of money especially in today's interest rate environment
While I know lotteries are just a “tax on people who are bad at math”, I still play on occasion. Only when the jackpots are huge (Canadian Context >$40 million, cash value) and often on some memorable occasion. There are lots of worse things to spend $10 on.
For once, I’m exempt from a tax.
It really depends. Funds where I live mostly go to community projects so actually I treat it as mostly a donation. It's obviously not the only donations I so but it's the only local ones. And if I do win something that's more than 3 figures I'll donate that too, I just know it's very unlikely.
Personally, I think there should be a cap on jackpots of like 100x median annual wage. Makes no sense to give 100s of millions to one family, they'll likely to blow it on unnecessary things, would be cooler to have more winners with still very life hanging amounts.
Unpopular view I expect