How to lose a billion dollars?

[marko]

One thing I never understood about these lotteries, if you take the annuity, is it indexed to inflation, or no? For instance, if this one pays out $56M over 30 years, is it just a flat $56M each year, where the true value gets eroded by inflation? If that's the case, in the final year, that $56M could easily be chiseled down to around $25-30M, at best.

Inflation is such a lifestyle killer.

 

[CatinKS]

I tell people what a waste of money when they come back with....Well, someone has to WIN! It is equivalent to picking the correct inch in 4,611.76 miles or the correct inch between Miami Florida and the East Coast of Russia.

 

[Ian S]

While most people are aware of the calculation of the odds of winning a lottery, it's not so clear as the jackpot amount climbs (repeatedly no winners) what the expected value of a lottery ticket is. More on this: https://chance.amstat.org/2020/02/lottery-ticket/

 

[sparky08]

The Powerball, a tax on people who are bad at math.

I tell people it's a tax on people that didn't pay attention in math class.

Our state lottery advertises on a station I listen to. They say that 55% of the money is given out in prizes.

I just can't bring myself to buy a lottery ticket.

 

[Sunset]

I only buy the lottery tickets when the prize is over 800 Million.

I am buying the opportunity to day-dream about the money, can't really do that when my chance is zero.

To me, the day dream is worth more than a Latte and cheaper as I only need 1 ticket per draw to day-dream.

 

[frayne]

The Powerball, a tax on people who are bad at math.

+1

 

[Aerides]

I am buying the opportunity to day-dream about the money, can't really do that when my chance is zero.

This is why I buy them when I occasionally do. Fun day dreams!

 

[aaronc879]

The Powerball, a tax on people who are bad at math.

I think the person in California likes the math...

 

[Time2]

Hopefully with $774 M they won't go broke, but all these lottery winners did!

So sad, all they needed to do was ask us.

 

[Major Tom]

I would not turn it down - but managing that amount of money - responsibly - would be work.

I agree, and think that even many of us here might be surprised at the headaches that amount of money could create. We might well know how we'd invest the money, but what to actually do with it all? How much would you give away, and to who?

 

[marko]

I would not turn it down - but managing that amount of money - responsibly - would be work.

With that kind of money, there's reputable professional people to do that while you're lounging around pool. Some have been in business for over 100 years. I met a guy who's company won't even talk to you unless you have over $600MM.

Their job is to manage it, your job is to enjoy it.

 

[Time2]

I agree, and think that even many of us here might be surprised at the headaches that amount of money could create. We might well know how we'd invest the money, but what to actually do with it all? How much would you give away, and to who?

My dream would be to get a large building fill it with large machining and wood working tools, loads of mechanical parts, A mechanical/chemistry/physics area (s) and hired some skilled creative craftsman.
Then we would just build cool things, maybe some for science and technology museums. Maybe even some that are profitable.
Something like 'Adam Savages Tested' but on a multimillion dollar scale.

Put some of these to work

Why? Because we can! I think?

 

[aaronc879]

I agree, and think that even many of us here might be surprised at the headaches that amount of money could create. We might well know how we'd invest the money, but what to actually do with it all? How much would you give away, and to who?

Initially I would give away just shy of $13M to immediate family. That is the max lifetime exemption. Then I would give away $17K each to extended family and friends. That is the annual exemption limit. Beyond that I would just give big tips to service people and help local people and families going thru rough times. I would not give millions to general funds of major charities like United Way. That would just go to CEO salaries or other administration costs. I would give smaller amounts to individual people whenever I felt like it. I would not give anything to anyone who asked me for money with very very few exceptions.

 

[badatmath]

I guess I'd best go buy a powerball ticket since after all we all know I am badatmath.

 

[rodi]

I read a post on a different forum, years ago, about steps to take to rename anonymous if you win.

Some states require that you give your legal name and photo, and they publish it. California is one of those states. So you have to work around that.

step 1: put the ticket in a safe deposit box or some other inaccessible place till you complete several more steps.

step 2: contact a lawyer about LEGALLY changing your name. Let the dust settle and open an account in the new name to receive the funds.

step 3: If you are a man, grow (or shave) facial hair to get a different look. Both genders, dye your hair, change your glasses (or get rid of them if you wear them, or add them if you normally don't.

step 4: You have a new name, a new look, new bank acount. Contact the lottery office and arrange to come in. Wear clothes that are a disguise. Wear a wig if necessary. Do not look like your normal self. Sign all the forms with your new name, and get your picture taken with your new look.

Step 5: deposit the check in the account under the new name.

Step 6: contact the lawyer about changing your name back. Dye your hair back to the normal color, shave, return to normal eyewear.

In theory, you have thwarted some of the financial fraudsters who stalk lottery winners.

I don't know if any of this would really work, but if I won, I would definitely ask a lawyer about it.

As for the math - I had a college math professor friend who played regularly. He pointed out that a $1 investment improves your odds infinitly... Because it's now non-zero. FWIW, I did not play, so I definitely didn't win.

 

[JoeWras]

That's a cool set of steps! Since I'm bald, I'd wear a hell of a wig to go to the lottery office.

 

[Walt34]

I am buying the opportunity to day-dream about the money, can't really do that when my chance is zero.

To me, the day dream is worth more than a Latte and cheaper as I only need 1 ticket per draw to day-dream.

That's it for us. Once in a blue moon DW will buy a ticket, it is not a line item in the budget, it is "found in the couch cushions" change. Neither of us is under any delusions about the math, and no one would be more astonished than us if a ticket ever hit. But once in a while one can daydream big for small change.

 

[ncbill]

I read a post on a different forum, years ago, about steps to take to rename anonymous if you win.

Some states require that you give your legal name and photo, and they publish it. California is one of those states. So you have to work around that.

step 1: put the ticket in a safe deposit box or some other inaccessible place till you complete several more steps.

step 2: contact a lawyer about LEGALLY changing your name. Let the dust settle and open an account in the new name to receive the funds.

step 3: If you are a man, grow (or shave) facial hair to get a different look. Both genders, dye your hair, change your glasses (or get rid of them if you wear them, or add them if you normally don't.

step 4: You have a new name, a new look, new bank acount. Contact the lottery office and arrange to come in. Wear clothes that are a disguise. Wear a wig if necessary. Do not look like your normal self. Sign all the forms with your new name, and get your picture taken with your new look.

Step 5: deposit the check in the account under the new name.

Step 6: contact the lawyer about changing your name back. Dye your hair back to the normal color, shave, return to normal eyewear.

In theory, you have thwarted some of the financial fraudsters who stalk lottery winners.

I don't know if any of this would really work, but if I won, I would definitely ask a lawyer about it.

As for the math - I had a college math professor friend who played regularly. He pointed out that a $1 investment improves your odds infinitly... Because it's now non-zero. FWIW, I did not play, so I definitely didn't win.

Best approach is to buy your ticket in a state that lets you claim & also remain anonymous:

Powerball jackpot winners can collect the $1.73 billion anonymously in these states

My lottery dream is to buy a winning MM ticket with the 5x multiplier in an adjacent state that is on the list above.

Then take the annual payout, which increases 5% annually over 30 years.

It would serve as a nice, COLA "pension" for my retirement years.

And AFAIK, no lottery commission can require you to have your picture taken.

 

[LateToFIRE]

I read a post on a different forum, years ago, about steps to take to rename anonymous if you win.

Some states require that you give your legal name and photo, and they publish it. California is one of those states. So you have to work around that.

step 1: put the ticket in a safe deposit box or some other inaccessible place till you complete several more steps.

step 2: contact a lawyer about LEGALLY changing your name. Let the dust settle and open an account in the new name to receive the funds.

step 3: If you are a man, grow (or shave) facial hair to get a different look. Both genders, dye your hair, change your glasses (or get rid of them if you wear them, or add them if you normally don't.

step 4: You have a new name, a new look, new bank acount. Contact the lottery office and arrange to come in. Wear clothes that are a disguise. Wear a wig if necessary. Do not look like your normal self. Sign all the forms with your new name, and get your picture taken with your new look.

Step 5: deposit the check in the account under the new name.

Step 6: contact the lawyer about changing your name back. Dye your hair back to the normal color, shave, return to normal eyewear.

In theory, you have thwarted some of the financial fraudsters who stalk lottery winners.

I don't know if any of this would really work, but if I won, I would definitely ask a lawyer about it.

As for the math - I had a college math professor friend who played regularly. He pointed out that a $1 investment improves your odds infinitly... Because it's now non-zero. FWIW, I did not play, so I definitely didn't win.

I am not acquainted with any big lottery winners (at least not that I know of) but I am acquainted with some folks who have won the equivalent lottery of life - billionaires and 9-figure NW types with at least as much as we're talking about here.

None of them have changed their names or wear disguises or anything like that. And they are not anonymous, generally speaking they are minor public figures: prominent business founders, CEO's, ex-CEO's, low-key celebs, etc. What they do have is a close inner circle of people they trust and have known for decades, a broader social circle of other wealthy and influential folks (kinda like purpose-driven relationships), lots of staff, gatekeepers, and security to shield them from everyone else. But, actually, they go about life a lot more normally than you would expect, just with an unlimited budget for multiple staffed homes, chauffeured cars, 1st class travel and/or private jets.

 

[MichaelB]

Two cultural references come to mind.

First is from the song by Steelers Wheel “Stuck in

And your friends they all come crawling
Slap you on the back and say
Please
Please

Second is the 1932 film “If I had a Million”. It had 8 vignettes, one starring WC Fields titled “Road Hog”. After being driven off the road by a bad driver he receives a gift of $1M, buys a fleet of cars, drives around until he sees a bad driver on the road, uses one of his new cars to crash it and drive it off the road. Classic WC Fields.

 

[bobandsherry]

From another perspective, you can't lose what you never had. [emoji765][emoji385]

 

[MaxFIRE]

From another perspective, you can't lose what you never had. [emoji765][emoji385]

This. I would be happy to lose a billion if all I ended up with was $774M. It's a much rosier picture. I think.

But I don't play so it doesn't matter. I'll just have to be satisfied with fewer decimal places.

 

[EastWest Gal]

This particular lottery ticket was purchased at a small mountain town's main store, not the store just off the highway. The headline is wrong though. The lottery winner is not a billionnaire. Chances are they know most of the people in town. Chances are they'll have to move before they reveal themselves. If I were the person, I'd keep buying lottery tickets while contacting a lawyer, changing my name and appearance, etc. and deciding where to live.

https://www.sfgate.com/la/article/where-frazier-park-billion-dollar-lotto-ticket-18422759.php

 

[Texas Proud]

This is the exact reason why I don't buy lotto tickets. Furthermore I should add that after you reach the point of having more than you'll spend in a lifetime, having yet even more money isn't going to really do anything.

There is different levels of spending according to how much you have...


I guarantee that if I won the big pot I would be spending a LOT more than I spend now..

 

[Texas Proud]

I see a lot of people who say it is being bad at math... but it really is not..


If you only go for the big prizes you are 'good'...


A ticket is $2... odds are like 290 mill to one.. so if the post is over $580 mill you are positive....


Sure, the chance of winning is super slim... but the math is in your favor..