As I write this the current estimated jackpot for Powerball on Wednesday, January 13, 2016 is $1.4 billion. It is the largest lottery jackpot in history.
If you win the jackpot and elect to be paid out over 30 years, you will receive $46,666,666.66 per year, less taxes.
The cash-out option, where you take all of the cash up front, is estimated to be “only” $868 million, less taxes.
As for the taxes, the lottery takes 25-percent off the top but you will still be required to pay the federal rate of 39.6-percent and your state tax. In places like New York City there is also a city tax. While I love New York, I would move before collecting the prize!
If you were wondering, the best place to move because of the taxes would be to California. California does not tax lottery winnings. But you will be subject to the federal income taxes at the highest rates.
For discussion, let’s imagine that you won and decided on the cash-out option. If you consider your state tax is the average of 7-percent, you will be left with $747.6 million. After you pay the bills, buy the new dream home, cars, vacations, etc., most of my readers should consider what you are going to do with your numismatic collection. You can build a great collection or purchase just about any coin with what is left.
What is your numismatic fantasy?
If I win Powerball, I will put up a $15 million reward for the owner of a surviving 1964-D Peace dollar to sell this special coin to me. The coin must be able to be certified as legitimate by experts in a manner that the Walton Liberty Head Nickel was certified. The reward will be paid only if the coin can be certified.
Why did I choose $15 million? Because I wanted to ensure that it was the most expensive coin on record. For a coin this special and this unique, it should be an appropriate price.
You know mine, what is yours?
Fantasy image of the 1964-D Peace dollar courtesy of PCGS.