Mega Millions 356M

[otley]

They don't just let you walk into some office and say "I would like every combination, please." You'd actually have to BUY MILLIONS OF PAPER TICKETS one at a time.

(and then hope you don't lose the winner)

[Devastator]

In for 30 tix

[Dismal Science]

Time to cash out the 401(k) and invest in some lottery tickets.

[Paintball Wizard]

So, actuaries, would you get the lump sum or the 20- (or is it 40-) year annuity?

[Dismal Science]

Lump sum all the way - taxes are going up.

[1695814]

Originally Posted by Dismal Science

Lump sum all the way - taxes are going up.

good point.

[1695814]

The powerball faq has a bit on this subject:

CASH VS. ANNUITY - MY FINANCIAL EXPERT SAYS HE CAN EARN MORE THAN THE ANNUITY WITH THIS CASH. Maybe. We have seen that even financial experts forget about taxes. From the example above, if the winner takes the cash, then the winner will have to pay state and federal taxes on the cash amount. The amount of income tax will vary, but it will likely be somewhere close to half the cash amount (counting federal and state taxes). With $50 million as a cash prize, a cash winner will have less than $30 million to invest. We don’t pay any income tax and so start out by investing the whole $50 million. You should note that current tax rates are pretty low right now and may go higher in the future. Federal rates for 2012 are at 35% (and Powerball winners end up in that maximum tax bracket).
Sometimes financial experts also do not understand how the annuity prize is paid out. We do not hold the prize for 29 years and then pay it all out. The Powerball annuity prize is an annuity stream. The winner gets the first payment immediately and then an annual payment for the next 29 years. And this is guaranteed. It is possible to beat this income stream, but not without risk. Deciding how to take the prize can be a complicated decision, but it is an important one that deserves your attention. You have 60 days, after you claim your ticket, to make the decision. Get lots of advice and ask these kinds of questions.

[LifeIsAPoissonProcess]

Originally Posted by Smart Actuary

So why would warren buffet not buy $300 million worth of tickets for a quick profit?

Taxes. If two people win then it's split. Just because you bought all the combinations doesn't mean no one else did the same thing.

[lovmath]

How about warren buffet donate 300 million to charity organiztion run by his friend and get tax break...his friend buys the tickets and gives all winning less0.5% to warren...

[IKnewIt]

Originally Posted by Paintball Wizard

So, actuaries, would you get the lump sum or the 20- (or is it 40-) year annuity?

It's a 26-year annuity.

I'll take the lump sum, thanks.