Powerball Jackpot Tops $1.6 Billion, Smashes Lottery Record

Powerball Jackpot Tops $1.6 Billion, Smashes Lottery Record

The Powerball jackpot swelled to an estimated $1.6 billion on Friday, the largest in US lottery history, after no winners were declared in Wednesday’s drawing. 

The jackpot now stands at a record, surpassing the previous Powerball jackpot record of $1.586 billion in 2016. 

Top 10 Powerball Jackpots

1. $1.6 Billion (Est.) – Nov. 5, 2022

2. $1.586 Billion – Jan. 13, 2016 – CA, FL, TN

3. $768.4 Million – Mar. 27, 2019 – WI

4. $758.7 Million – Aug. 23, 2017 – MA

5. $731.1 Million – Jan. 20, 2021 – MD

6. $699.8 Million – Oct. 4, 2021 – CA

7. $687.8 Million – Oct. 27, 2018 – IA, NY

8. $632.6 Million – Jan. 5, 2022 – CA, WI

9. $590.5 Million – May 18, 2013 – FL

10. $587.5 Million – Nov. 28, 2012 – AZ, MO

Americans are flocking to convenience stores and gas stations, hoping to be the lucky winner in the next drawing on Saturday, though chances of striking it rich overnight are about one in 292 million odds.

Suppose there is a winner for the next Powerball drawing, slated for Saturday at 10:59 ET. In that case, they will have to choose between 30 annual payments of $33.637 million after federal taxes or an immediate cash payout of $782.4 million. 

Here’s how the math works out:

Bloomberg noted that in today’s souring macroeconomic backdrop with elevated inflation — the winner’s best option is to go with a lump sum payout. 

“If you think about it, the annuity payment option is like buying a 30-year bond, and 30-year bonds have a lot of inflation risk.

“That’s a really concentrated risk to take when you have half a billion dollars after tax potentially coming your way,” said Noah Damsky, a principal at Marina Wealth Advisors in Los Angeles. 

Bloomberg Intelligence’s Eric Kazatsky wrote:

“I think the bigger question is, do you want to pay all the taxes up front or each year?

“At these rates I would want to pay the taxes up front and lock in long-term exempt rates.” 

“Theoretically, investing the $745.9 million cash payout for 30 years at a 4.08% rate would bring your earnings to an estimated $1.66 billion. Even at $470 million, the return would make the winner a billionaire,” Bloomberg said. 

The largest-ever jackpot has sent Americans into a frenzy. Google search trends reveal “when is the next Powerball” hit five-year highs. 

Typing in “when is” on a Google search automatically generates Powerball search results on the top. 

And if no winners are declared this weekend. Then the jackpot will continue to rise. 

Tyler Durden
Fri, 11/04/2022 – 16:40

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