Is the USA lottery not the biggest ripoff on the planet?

[corporatejay]

Originally Posted by Ozy_Flame

I don't want some 18-year old winning the lottery. They'll probably blow half of it, not go to a financial adviser, and lose most (if not all of it) by 25.

I prefer to see a senior citizen win these types of things - I like to think they've earned it over the course of a lifetime. Donating it is also more likely and much better feel-good story from older folks.

No one likes a punk kid winning things.

I'm pretty sure a large portion of lottery winners end up going bankrupt. This isn't exclusive to 18 year olds.

[GGG]

Originally Posted by corporatejay

I'm pretty sure a large portion of lottery winners end up going bankrupt. This isn't exclusive to 18 year olds.

This is why if I one the powerball without a doubt I am taking the 25 year or 40 year payment plan. It would mean that you have a constant stream of cash coming in. You would just have to be disciplined to not borrow to heavily against it. but at 175 million win would would get 4.5 million per year over 40 years. You can screw up alot and still be fine.

[puckluck2]

Yeah it's total BS. But that's Ermerica for you. Thankfully Canada has lottery figured out as well as the government.

[Drunk Skunk]

Originally Posted by undercoverbrother

I actually thought you got an option when you won. A reduced lump sum payout or a per year payout for the full amount spread of 20 years or so.

At least with the MegaMillions, it's a lump sum, or a 30 year annuity that grows 5% annually.

Originally Posted by Minnie

This was my understanding as well. I saw some guy on one of those 'The Lottery Changed My Life' shows and he said he took the lump sum payment because if he died, the annuity died with him and he wanted to be able to set up things for his family/kids sooner rather than later, and not depend on the annuity.

As an aside, a lot of my Yank friends/family call the lottery the 'stupid tax.'

The annuity only "dies with" the person if they are a complete and total moron. It's simple to set up a trust that would continue to receive the annuity.


As far as the lottery - my thoughts on it are that the majority of people to play it on a regular basis are the desperate and the stupid.

[puckluck2]

Originally Posted by GGG

This is why if I one the powerball without a doubt I am taking the 25 year or 40 year payment plan. It would mean that you have a constant stream of cash coming in. You would just have to be disciplined to not borrow to heavily against it. but at 175 million win would would get 4.5 million per year over 40 years. You can screw up alot and still be fine.

Wouldn't you get more from interest per year on 120 million? I'd take the settlement and invest it low risk or let it sit and collect interest.

[Oil Stain]

Originally Posted by Phanuthier

Side rant: Why are all the winners always from the ghetto? Why isn't it ever "30 year old engineer working for a fortune 500 company wins mega millions jackpot!"

... really wish I drove down to San Jose to get my ticket now rather then buying it in an affluent area Safeway.

Because odds are that the 30 year old engineer already won the womb lottery.

It's exceedingly rare to win the lottery twice.

[DuffMan]

Originally Posted by Phanuthier

Side rant: Why are all the winners always from the ghetto? Why isn't it ever "30 year old engineer working for a fortune 500 company wins mega millions jackpot!"

... really wish I drove down to San Jose to get my ticket now rather then buying it in an affluent area Safeway.

I always hate the 45 year old accountant couples that plan on taking a vacation and then continuing on working, as accountants.

[jayswin]

Originally Posted by DuffMan

I always hate the 45 year old accountant couples that plan on taking a vacation and then continuing on working, as accountants.

I always figure the ***holes who claim they'll keep working don't actually keep working very long after they say that in the interview.

I also bet those people, unless they're handing out money to everyone, are pretty hated around their workplaces. They probably come in and half ass it and just talk about **** they're going to buy and leave early all the time to go get stuff, and take days off randomly because they have things to do and money to do it now.

Meanwhile the people that need to earn a living have to work like normal and put up with the winner walking around with that "I don't have to be here but I am, but I might leave at any moment, and nothing urgent or pressing at work is urgent or pressing to me" stupid grinny look on their face.

[T@T]

Originally Posted by GP_Matt

I think it is because more poor people play the lottery.

I'm thinking just about everybody plays a lottery when it's huge! but there a lot more poor people than rich people...odds are...

[Ironhorse]

[fundmark19]

Originally Posted by GP_Matt

The whole idea of a state run lottery is a scam. They collect the money and set a value on the prize that is related to the amount of tickets taken in but they keep a huge percentage that goes into general revenue.

Would you rather pay taxes? How do you feel about casinos since they pay out a large portion to the government as well.

[Russic]

There was a really good Freakanomics podcast that discussed the lottery. They were looking into poor people that play the lottery and it seems the basic lack of understanding in mathematics is a pretty big factor. Many are completely unable to maintain a basic savings account. A bank came up with an interesting solution where they set up savings accounts with a basic % return, and then half of that percentage would be set up as a weekly lotto win for one of the people in the program. Not enough return to keep up with inflation, but at least people were putting money aside, and the chances of winning was much higher.

Of course as you can imagine, the government and lotto corporations were none too please and forced them to stop.

[CaptainCrunch]

Top 10 lottery tragedies

http://ca.askmen.com/top_10/dating/t...tragedies.html

[speede5]

Originally Posted by flameswin

I always figure the ***holes who claim they'll keep working don't actually keep working very long after they say that in the interview.

I also bet those people, unless they're handing out money to everyone, are pretty hated around their workplaces. They probably come in and half ass it and just talk about **** they're going to buy and leave early all the time to go get stuff, and take days off randomly because they have things to do and money to do it now.

Meanwhile the people that need to earn a living have to work like normal and put up with the winner walking around with that "I don't have to be here but I am, but I might leave at any moment, and nothing urgent or pressing at work is urgent or pressing to me" stupid grinny look on their face.

Bitter?

[Displaced Flames fan]

Originally Posted by T@T

Woman wins $324 million on mega-millions and to do a cash settlement only gets $120 million. I know is still a tonne of cash but 2/3 going back to the corp is a complete ripoff. This lottery is funded by cash that the government already collected taxes on.

http://www.cnn.com/2013/12/18/us/meg...html?hpt=hp_t2

The publicized jackpot amount is an annuitized estimate. Always.

[GP_Matt]

Originally Posted by fundmark19

Would you rather pay taxes? How do you feel about casinos since they pay out a large portion to the government as well.

I am happy to let others contribute to the tax pool on my behalf. That doesn't mean that I don't think it is a scam.
I am not a fan of government controlled sin though.
The government often takes the stance that it is bad for you so we should profit from it if we are going to allow it. It just seems scuzzy.

[fundmark19]

Originally Posted by GP_Matt

I am happy to let others contribute to the tax pool on my behalf. That doesn't mean that I don't think it is a scam.
I am not a fan of government controlled sin though.
The government often takes the stance that it is bad for you so we should profit from it if we are going to allow it. It just seems scuzzy.

Ya I see what you are saying. I feel somebody has to benefit from peoples stupidity/choices so I feel it is better that the government does instead of private organizations. At least there is a benefit to the everyday person by the government profiting vs a private enterprise.

[GP_Matt]

I would much rather see the government stick to taxation and regulation.

[fundmark19]

Originally Posted by GP_Matt

I would much rather see the government stick to taxation and regulation.

You lost me. You just stated you don't want government to run lotteries and collect taxes off it yet you want them to have tax and regulate. Isn't that exactly what holding their own lottery is doing regulating how and what taxes they collect from it

[calgarywinning]

I say let the Mafia run the lottery and in particular Steve Buschemi.