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.
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.