Should you jump on the Lottery Bandwagon?

Are you getting Lottery fever and dreaming of all the wonderful things you would get if you become a Millionaire. There was no Winner in Saturday nights drawing and the Power-ball is now estimated to be $750 million for Tonights drawing.

In fact your odds of actually winning the lottery are extremely remote about 1 in 292,201,338, but does that mean you shouldn’t play. A financial adviser would most certainly advise against it. Think about it this way. If you buy a $5 ticket for both Wednesday and Saturday drawings that is $10 a week. That’s $520 a year, they would certainly tell you to put that amount towards debt or invest that money more wisely.

Let’s not forget about the taxes. Most people would choose the lump sum cash option if they were to win Saturday nights draw, bringing the amount actually won to $380.6 million. Right away the Federal Tax of 24% would be approximately $91.3 million leaving you $289.3 million. With at least another 13% taken when you file your taxes, $49.5 million your now at $239.8 million. Add on State Tax depending on where you live you could pay another 8% up to $20 more million.

Well $220 million is still an awful lot of money to worry about and you’ll want to make sure you get help from lawyer’s, tax accountants and financial advisers if you win. Many past winners have gone bankrupt within just 3-5 years after winning.

Winning a large amount of money can be extremely stressful, there will always be someone that wants to take that money from you. Old friends, family members and anyone looking for a handout will pounding on your door looking to get their share of it. Money can pay your bills but it can’t buy you happiness.

Recent studies have shown that most lottery tickets are purchased by the lowest income households in the United States. It is estimated that poorer households spend and average of $412 annually on lottery tickets and higher income earners spend $105 annually on lottery tickets. But if you find playing the lottery to be fun and entertaining and you have the money to play then why not go for it. But just know your odds are very remote.

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