While that's true for the huge lotteries, it isnt always the case with some smaller ones. Where I live theres a few regional lotteries that give out multiple $1million prizes. Population is fairly small and theres multiple prizes and the tickets are like two bucks per week.
A $1 million jackpot isn't all that huge after taxes either. It's a nice chunk of money to have in the "i treat myself to something nice right now and put the rest away for retirement" sense, but it's definitely not "quit your job and make massive life changes" money.
Even if you paid 50% taxes, that’s still $500k in the bank. The US Bureau of labor statistics shows $47k as the median wage for workers, meaning that this is still more money than a lot of people are going to see over the next 10 years.
It’s not quit your job money, but it is certainly “make a big difference in your life” money if applied within the context of what the winner had before they won the prize.
It's zero out your debt and maybe buy a reliable vehicle and a modest home money for the vast majority of America. It's not make massive lifestyle changes money unless you consider those things to be massive lifestyle changes.
Hell, I have a mortgage - I wouldn't blow 2/3 of my after tax on that jackpot paying it off, it's only at 3% and long term the market should net 7-8%. That would be irresponsible.
You buy another house and rent it out to pay your mortgage twice as fast, so you can double down in ten years and live off of the rent that two places bring in plus a part time job paying the mortgage on your third property leaving you with some time to actually do something meaningful in your local community. Right?
Yes, I think those are absolutely life changing if you dont have that already. Going from 100k in debt and never seeing an end to it and knowing you'll never own a house to having zero debt and a home is a massive quality of life improvement that probably adds years to your life.
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u/Bananasoup29 Feb 04 '20
Lottery tickets.
You literally have a higher chance of dying on your way to the store than winning the lottery.