Powerball. It's a hope and a dream for many.

 

As I write this, the Powerball Jackpot is at the $1.4b payout level (if taken as an annuity).  Given that the odds of winning are roughly 250M to 1, it is almost always a sucker bet, and an easy way for states to pick peoples' pockets instead of levying taxes.  But once taxes and the current value of money are factored in, any jackpot in the $900M+ range is a rational bet, as the after-tax payout in present value dollars is commensurate with the risk taken to win that money.  So, I will likely spend a tenner to buy 5 quick picks and indulge in a poor person's dream.

When my dad was alive and living at home, he would give both my brother and I several scratch-off tickets on our birthdays.  Yes, it was a waste of his money.  But it was cheap entertainment for us.  Once, we had the pleasure of taking him to the Connecticut casinos and spending a day together.  No, it's not how I'd normally spend a day.  But it made my dad happy, and that's all that counts.

Do I think of what I'd do if I won the lottery?  Sometimes.  But it would simply allow me to own a small home where I had a two-car garage, two cars in the garage, one of them electric and the other gas powered, and convenient to mass transit for my long term needs.  If I won it today, I'd probably travel more than I do now.  My life wouldn't change much.  But I wouldn't advertise that I got lucky, as all the "distant relatives and lost friends" would come out of the woodwork for a handout.  

What would you do if you won a big jackpot?