1 Lottery Winnings

Topics: Mega Millions, Powerball, Lottery Pages: 13 (475 words) Published: August 4, 2015
Retirement Plan
Matthew Birkebak
Marisela Valadez Alatorre

Odds of winning the
lottery


Chances of winning the lottery.



Odds for both the Mega Millions and Powerball.



Percentage of new friends after winning the
lottery.



Odds of losing the money awarded from a
lottery win.



Second chance drawings.

Mega Millions


Odds of winning:1 in 259 million
on the jackpot



$656M, Mega Millions, March
30, 2012 is the largest jackpot
with 75 million tickets sold for
drawing.



Odds of getting struck by
lightning is 1 in 700,000



Expected value: $1.54


1/259M($656M)-(258/259)$1

Powerball


Odds of winning: 1 in 175,223,510



 $590.5M Powerball May 18, 2013 largest ever with
ticket sales of 72 million.



Minimum 40 million dollars jackpot entices more sales.



More likely to get murdered than win the Powerball

Expected Values


Mega Millions



Expected value: $1.54


1/259M($656M)-(258/259)$1

Megamillions vs Powerball


Cheaper to enter at only $1 vs $2 or
Powerball



Odds of winning Megamillions is higher



Powerball has larger jackpots more
often



A jackpot win with either guarantees
retirement

Friend Increase


People come out of the woodwork claiming
lifetime friendship.



300% increase of people that know you.



Lottery Winners Call It a “Curse.”



New “Investment opportunities”

Why people play


The ultimate fantasy: Walk into a store, plunk down a
dollar, and with nothing but luck — really
extraordinary luck — you win a giant lottery. 



 A desire to improve your life in a way that's driven by
fantasy.... The bigger the fantasy, the tastier it gets.



 Hope that a better day will come, that some big thing
will happen that will make everything right, set the
course on track. 



States most likely to win….

Losing your winnings


William "Bud" Post squandered his 1988 Pennsylvania prize
of more than $16 million on houses, vehicles and bad
businesses 



More than 1,900 winners went bankrupt within five years.



 They tend to have limited financial literacy (even compared with a general population that has been shown to sorely lack it). 



Develop a taste for luxury goods that outlasts their money,“



1% of Florida lottery players (winners and losers) go
bankrupt in any given year, about double the rate for the
broader population 

Winnings

Second Chance Drawing


Higher Chance of winning



Winnings are smaller but still drastically higher
than the cost of a ticket



Wisconsin residents only



Odds of winning is depends on entrants, usually
around 1 in 10,000



https://www.youtube.com/watch?
feature=player_embedded&v=ivDY3rdui78

References


3 Reasons to Play the Mega Millions Lottery. (n.d.). Retrieved from http://www.winmoney.cm/reasons-to-play-the-mega-millions-lottery



Powerball - Home. (n.d.). Retrieved from http://
www.powerball.com/pb_home.asp



Mega Millions. (n.d.). Retrieved from http://www.megamillions.com/



second chance lottery odds - Google Search. (n.d.). Retrieved from https://www.google.com/search?
q=second+chance+lottery+odds&oq=second+chance+lottery&aq
s=chrome.5.69i59j0l5.13307j0j4&sourceid=chrome&es_sm=122&i
e=UTF-8

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