Wednesday, March 28, 2012

Financial advice

MegaMillions jackpot is currently $500Mn (annuity), $379Mn (cash now).
I'm figuring state & federal taxes at 40%, leaving just over $215Mn, after-tax current dollars.
Odds of winning are just a wee bit better than 1 in 176,000,000... which means the current after-tax value of a ticket is about $1.23.
It only costs a dollar.
Buy one.

(Above analysis does not take into account likelihood you'll have to share the jackpot...)

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