Would hire a financial advisor if you won the $1 billion Mega Millions?

[mumof2]

We don't have lottos that big over here and the good thing is we don't pay taxes on your winnings straight away (you will while it is in the bank) and you can remain anonymous but I would certainly help some of my family...also would help 2 of my charities, homelessness and backpacks for foster kids....they would never do without...maybe with that much I could start my own bank and only lend to people on low incomes who have trouble getting money to buy houses, take out a lot of fees etc...it would be worth thinking about

[QuarterMillionMan]

I'm not sure it would be. As we've said, winning a huge amount like that can actually lead to all sorts of problems. I'd much rather win a lesser prize than the jackpot. A million or two would be just fine with me and wouldn't bring with it all of the issues of a billion.

Yeah problems, shmabloms. With that kind of moolah, I could hire a team to deal with any and all problems. At any rate that jackpot reverted to $20 today so someone or a team won it last night.

[mumof2]

looks like 1 person in illinois won it

[scfr]

Serious question. If the reason for buying a ticket is to have some fun and dream a little (I get it - I bought one too!), why buy more than 1?

[bjl584]

Serious question. If the reason for buying a ticket is to have some fun and dream a little (I get it - I bought one too!), why buy more than 1?

statistically there is no benefit to buying more than one pick
it's hard to convince people of that, and that's where they fall into a trap.

unless you could somehow buy all the combinations (which is logistically impossible), and manage to be the only winner, then buying one pick is all you need

[disneysteve]

statistically there is no benefit to buying more than one pick

That's not true. One ticket gives you a 1 in 302,575,350 chance of winning. Two tickets doubles your chances to 2 in 302,575,350.

[myrdale]

That's not true. One ticket gives you a 1 in 302,575,350 chance of winning. Two tickets doubles your chances to 2 in 302,575,350.

What's interesting also is looking at the coverage, that is to say what percent of all available number combinations are taken. I seem a few years ago during a big draw the total coverage was as high as 75%.

[ua_guy]

Serious question. If the reason for buying a ticket is to have some fun and dream a little (I get it - I bought one too!), why buy more than 1?

DS explained the numbers, but nobody has answered the question, why buy more than one (if odds are so low).

Because buying 2 could DOUBLE your chances of not having to show up for work on Monday. ..Double!!

When you're stuck in an untenable job situation, or financial situation where lottery winnings could set you free....even 2 chances in more than 300,000,000 feels like a double helping of hope

[LivingAlmostLarge]

people start to buy when the numbers get really high!

[myrdale]

....even 2 chances in more than 300,000,000 feels like a double helping of hope

ua_guys's statement of "feels like" is a perfect example of how irrational people, myself included, are. That we make decisions based on feelings rather than facts and statistics.

I heard about a study yesterday where the scientist had two buttons, on green and one red. When one of the buttons was pressed, at random one of the two buttons (maybe the one pressed, maybe the other) would light up. The green button would light up 80% of the time and the red button 20%, completely randomly. A mouse would have to press one of the buttons. If the button it pressed lit up, the mouse got food, if not it got shocked. The mice learned to just press the green button every time and accept the 20% shock rate. People on the other hand will try to beat the system by occasionally pressing the red button, which leads to a 34% shock rate, rather than the 20% if they just hammered green.

[QuarterMillionMan]

No one hit the Powerball on Oct 31 so the next drawing takes it to $1.2 billion for Nov 2. Here we go again I'll be getting some soon. And nope I still wouldn't hire a financial advisor if but it's a long if I win it, lol.

[kork13]

Trick question -- Can't win it if I refuse to buy lotto tickets. For that matter, nigh unto impossible to win even if you do buy tickets...

But in general, I'd tell most windfall recipients to sit on it a while & seek out some quality advice. That could be a financial advisor, lawyer, accountant, or a combination of the above. The focus should be on preservation & responsible application of the windfall. Most people can't do that well without an outside advisor.

I'm sticking to my story.

I don't pay attention to the lottery & have no desire to support it.

[ua_guy]

We bought a few tickets, because, why not!

[myrdale]

All - I hate to be the guy who is raining on everyone's parade. The chances of winning the lottery are very, very, very small. So, instant wealth isn't going to happen - you need to work for it.

I don't think I've shared this on here before.

Growing up, my father worked night shift. Once a month we would drive down to Florida for him to buy lottery tickets. Dad played 5 sets of numbers every month for close to 20 years. One month they changed his hours at work from nights to days, so June, July and August he didn't buy a ticket. September they put him back on night shift and he bought his tickets. Later that week he checked the numbers for the three months he didn't play. The first drawing he didn't have a ticket, all seven of his numbers for one of the sets landed. $13.5 million dollars and he didn't have a ticket. He was physically sick for nearly two weeks. Of course if he had a ticket, the numbers wouldn't have landed. Also two years later he was diagnosed with stage 4 prostate cancer. All the money in the world wouldn't have helped in the end.

The other thing I have to say about the lottery is most people don't have a grasp of what 1 in 300 million really is.

There is a local trail I walk sometimes. It is 3.5 mile loop. There is 5,280 feet in a mile, so the loop is 18,480 ft around. The trail is about 10 feet wide, so it has an area of 184,800 ft^2. There are 144 in^2 in a 1 ft^, so the trail has an area of about 26,000,000 square inches. Multiple that by 4, it has an area of about 100,000,000 quarter inches^2. For argument sake, let's say a dime has an area of roughly 1/4 in^2. If I dropped that dime somewhere on that trail, blindfolded you, and then asked you to bend over once and pick it up, your chances are x3 better of finding the dime then winning the lottery.

[QuarterMillionMan]

This might get your attention.