The Powerball Lottery jackpot reached an all-time high of $800 million and ticket sales are still soaring as more people test their luck for a chance to win the United States' largest jackpot prize of all time. What could $800 million give a person should he or she become the sole winner of the enormous amount?
Let's have a reality check first before getting excited about the huge amount because, believe it or not, even if someone won that jackpot, they will not be rolling in that much money. The reason: taxes and taxes.
Reality Check: Let's Do The Math!
First, you have to take note that the probability of winning the jackpot is one in 292.2 million. That's a lot of luck to harness. Now if you have that much luck and you happen to become the sole winner of the $800 million jackpot, don't jump for joy just yet. Sure you would still be taking home a lot of money but, as a fair warning, you're not getting even half of that $800 million, especially if you decide to take the lump sum, because that would just leave you with around $496 million. Then Federal taxes have to be shaved off too so you'd have to say goodbye to 39.6 percent of that and be left with roughly $300 million.
But wait, there's more! Depending on where you live, you also have to pay for State personal income tax and City tax. Some States don't have State personal income tax so if a winner who resides there gets to take home the most amount of money. This also means that, sorry, New Yorkers, you'll take home the least amount of money because New York has both State tax and city tax.
Fantasy Time
Now that the math's done, let's find out how to get maximum enjoyment out of the Powerball jackpot money.
Vacation
If you're one of society's really hard workers, one of the best ways to celebrate your windfall is by going on a luxurious vacation, whether alone or with family and friends. You can get to various vacation paradises if you purchase your own Supersonic Jet worth $120 million and it will fly you to your destination faster than the speed of sound.
Back To Reality
Of course, you should know by now that people who experience windfall but do not manage their finances well sometimes end up right where they started or even poorer. Just a suggestion should you win the jackpot: find a trustworthy financial manager, invest a portion of your money, give to charity and spend just enough for hobbies and luxury.
