Should i buy a powerball




















Power Play increases your winnings for all non-jackpot prizes if you win. As of October , prizes for winning tickets with the Power Play add-on are subject to a 2x, 3x, 4x, 5x, or 10x multiplier, selected at random before each drawing.

The Power Play option is unavailable in California because state laws require that lottery prizes be paid on a pari-mutuel basis. Understand the goal and winning combos behind Powerball.

Each number is on a special ball that is randomly selected by a machine during the drawing. Your ultimate goal is to match every number selected perfectly, which will win you the jackpot.

However, there are other winning combinations of numbers that will win smaller prizes which can be quite lucrative in their own right. Your first five white ball numbers don't have to be in the same order as the balls that are drawn.

Winning numbers win regardless of the order they're listed in—for all prizes! However, the media typically reports numbers from smallest to largest to make it easier to read. However, the final Powerball number must match exactly, and none of the first five numbers can count in place of that final number. In the past, Powerball has reduced the white count from 69 to 59 and reduced the red count from 35 to Look for drawings every Monday, Wednesday, and Saturday night.

Drawings happen at PM Eastern Time, and you can check the results online. When you buy a Powerball ticket at the store, unless you pay for multiple drawings, it is only valid for the next drawing. In other words, if your Powerball ticket doesn't win, it's not eligible to win in future drawings, unless you specifically pay for multiple drawings.

The more drawings that occur without a jackpot winner, the higher the jackpot gets. Method 2. Fill out your ticket. Though Powerball tickets will vary slightly from state to state, the basic method for filling a ticket out is the same everywhere.

On your ticket, you'll need to specify the numbers you want to bet on, the number of drawings you want, and whether or not you want the Power Play option. Follow the guidelines below for filling out a basic ticket: [11] X Research source Fill in the spaces for five numbers from and one number from Usually, Powerball tickets are divided into multiple sections called "boards" which have rows of multiple-choice style bubbles to fill in to choose your numbers.

Indicate for each board whether you'd like the "Power Play" option. Each board except in California should have a space that allows you to buy a Power Play for your set of numbers. For random numbers, fill in the QP space instead of your numbers. Choose how many drawings you want. Most tickets have a "Multidraw" section that allows you to pay for multiple drawings. For instance, if you want to bet on your numbers for two back-to-back drawings, fill in the "2" space.

Each subsequent drawing costs as much as an additional ticket. If you make an error on any board, fill in the "VOID" space for that board. Don't try to erase - instead, mark the board void and fill your numbers in on another board. When you're finished, pay for your ticket.

The clerk will calculate the price of your ticket based on how many boards and Power Plays you've selected. Alternatively, ask the clerk for a Quick Pick ticket. If you don't want to fill out a lengthy Powerball ticket by hand or you don't care which numbers you bet on, you can usually ask for a Quick Pick ticket instead of the normal Powerball ticket.

In this case, a computer will randomly choose your numbers for you as if you had filled in the "QP" space for a board on the normal ticket. Check your numbers for Powerball's prize-winning combinations. If the numbers you picked match the numbers drawn in any one of nine combinations, you can collect your winnings.

Note that the prize amounts below represent base values - Power Play prizes are subject to a 2x, 3x, 4x, or 5x multiplier, selected at random except for Jackpots, which aren't multiplied, and prizes for matching five white balls, which will only double.

Note: prizes differ in California because state law requires lottery prizes to be awarded on a pari-mutuel basis where the payout depends on the pool of bets, instead of a fixed payout. Collect your winnings if your numbers match up. Small prizes can be claimed directly from the vendor you bought the ticket from, while larger prizes require official verification.

The precise procedures for claiming large prizes differ from state to state - you may need to fill out a claim form, etc. Powerball tickets do expire.

The time window you have to claim a prize differs from state to state - from 90 days to a full year. If you can't make it to the vendor or lottery office for some reason for instance, if you've left the state you bought the ticket in , it's legal to mail your ticket to the state lottery office.

Powerball provides a map that links you to state lottery pages, which will have more specific information about claiming prizes in your state. Average bank interest rates. Average k balance. How to retire early.

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Personal Finance. Walt Hickey. He came from FiveThirtyEight where he was chief culture writer. He also writes Numlock News , a daily morning newsletter. Loading Something is loading.

Email address. Stocks can depreciate as well as appreciate. So let's try a more cautious estimate. Let's say, despite the dismal odds, you do win the lottery, and you win big—six figures big.

You're going to face a lot of decisions, and the first one is how to receive the funds. With most lotteries, you get a choice: they can write you a check for the lump sum amount or you can receive it in the form of an annuity. The lump sum is a single cash transfer, whereas the annuity is a series of annual payments often spread out over 20 to 30 years.

Unlike some annuities that end when you do, this is something called an annuity certain : the payouts will continue for the set term of years, so if you pass away, you can bequeath those payments to whomever you would like.

Which should you take? Only six states allow winners to remain anonymous, while three others allow them to collect winnings through an LLC. Most lottery winners opt for a lump sum payment. They want all of the money immediately. That is the main advantage of a lump sum: full and complete access to the funds. Not only do individuals like that, but their newly acquired giant team of accountants, financial advisors , money managers, and estate lawyers do too—the more assets under management, the better, especially if their compensation is based on a percentage of those assets.

Taking a lump sum could also be the better course if, not to be morbid, the winner isn't likely to live long enough to collect decades of payouts, and has no heirs to be provided for. You may be in a better income tax position if you receive the proceeds over several years via an annuity rather than up front.

Lottery wins are subject to income tax both federal and state, except for the few states that don't tax winnings in the year you receive the money. If you take the lump sum option, the entire sum is subject to income tax that year. However, if you choose the annuity option, the payments would come to you over several decades, and so would their tax bill.

Not according to the experts. If you choose the annuity option, the government takes your winnings and invests them for you—most likely in boring, yet highly stable Treasury bonds. Usually, when you invest, you pay taxes, but when the government invests they do so free of all tax obligations.

If the government invests it, you only pay a tax bill once on the annuity checks. But perhaps the biggest argument for taking the annuity is more intangible—to protect you from yourself.

A six-figure windfall is a life-changing event, and not necessarily a good one. Most people are inexperienced at managing such sums to begin with, but even the wisest and coolest of heads could lose perspective, especially given the avalanche of friends, family, and even strangers that descends once the news gets out, pleading or even demanding a share of the spoils.

Academics cite research showing most lottery winners will save only 16 cents of every dollar they win and that one-third of lottery winners go bankrupt. An annuity can help, by literally limiting the funds in your possession. After all, you can't give away, squander, or otherwise mishandle what you don't have. Plus, taking the money over time provides you with a "do-over" card. By receiving a check every year, even if things go badly the first year, you will have many more chances to learn from mistakes, recoup losses, and handle your affairs better.

Inheritance factors are generally free standing but there can be some considerations where lottery inheritance is involved. Taxes are generally withheld from lottery distributions at the time they are paid out.

If payments are made in a lump sum, the inheritance can be passed along tax free since inheritance gifts are generally not taxed. If the payments are still coming in as an annuity, taxes will be withheld. As in all inheritance scenarios some estate taxes may be required if values exceed the exclusion limit.

Since lottery winnings push many people into the high net worth category, estate taxes may be a factor. This can be a challenge if the heirs do not have the cash on hand to do so. In some states Powerball will convert annuities to lump sums upon death to help better manage any tax burdens. If you ever do win the lottery, you will want to work with your financial advisor, tax attorney, and certified public accountant to determine which option is best for you—taking the winnings all at once or in annuitized payments over decades.

Many people see purchasing lottery tickets as a low-risk investment. The risk-to-reward ratio is certainly appealing, even if the odds of winning are remarkably small.

Is it better then, to play the lottery or invest the funds? There is no universally correct answer. Much of it depends on what money is being spent. If it is needed for retirement or the kids' college, it may make more sense to invest—a payoff is more certain down the road, even if it doesn't amount to a sexy six-figure check.

If, however, the money is tagged for entertainment, and you would have spent it seeing the latest movie anyway, it might be fun to take the chance. Keeping in mind, of course, that you are more likely to die from a snake bite than to ever collect. Lifestyle Advice.



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