As Lotto fever has swept across the country, Powerball officials on Monday upped the jackpot for Wednesday’s drawing from $1.3 billion to $1.4 billion.
“…[T]he person who wins the $1.4 billion Powerball jackpot during Saturday night’s drawing, assuming one person wins the entire pot, will have such a large pile of cash that they can create a steady cash flow of millions of dollars a year without taking much risk,” writes Jonnelle Marte in the Washington Post.
Here’s how, according to the article: ”For someone taking the lump-sum, the prize would amount to an estimated $868 million, according to the website USAMega.com. After a 25 percent withholding for federal taxes it would come down to $651 million. And after deducting a 5 percent state tax, that pot would be reduced to about $608 million — though it could be more or less, depending on the state. (Ten states, along with Puerto Rico and the U.S. Virgin Islands, don’t charge any state taxes on lottery winnings, according to USAMega.com.)”
The story adds, “After investing that $608 million in a conservative portfolio that earns an average of 3 percent a year, the move could generate a steady cash flow of about $18 million a year. (And that’s without spending down any of the actual prize money.) For the typical worker, that would be more than enough money to splurge on a new home, buy some luxury cars, offer some financial support to family and friends, and still indulge in a few luxurious vacations.”
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