I'm not a bad Boglehead [buying Powerball ticket]
I'm not a bad Boglehead [buying Powerball ticket]
But I am going to stop by the grocery store on the way home from work and ...... buy some Powerball tickets! Anyone else?
Re: I'm not a bad Boglehead
Same here.
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Re: I'm not a bad Boglehead
The pre-tax cash option value exceeds the odds of winning, so your decision isn't that irrational
Wait! Depending on your state of residence the after-tax value of the cash option is greater than your odds of winning. So, perhaps allocating a very, very small portion of your portfolio to Powerball is rational in some cases
Wait! Depending on your state of residence the after-tax value of the cash option is greater than your odds of winning. So, perhaps allocating a very, very small portion of your portfolio to Powerball is rational in some cases
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Re: I'm not a bad Boglehead
We spend about $10 a week on scratch offs and powerball tickets. We do not spend any money on beverages nor alcohol therefore this expense is well worth it. At least we get some good dreams out of this expense.
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Re: I'm not a bad Boglehead
I was just discussing with a co-worker how I gladly pay the $2 for the false hope of getting away from all of this crap.
- pennstater2005
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Re: I'm not a bad Boglehead
I get good dreams depending on what kind of alcoholic beverage I drink. Some are bad thoughanonforthis wrote:We spend about $10 a week on scratch offs and powerball tickets. We do not spend any money on beverages nor alcohol therefore this expense is well worth it. At least we get some good dreams out of this expense.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson
- noyopacific
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Re: I'm not a bad Boglehead
Even lottery winners are often losers in the end (they squander the money.)
I hope you win and then demonstrate that the tenants of Boglehead-ism can help you overcome this kind of challenge !
http://money.cnn.com/2015/02/10/pf/lott ... rs-losers/
I hope you win and then demonstrate that the tenants of Boglehead-ism can help you overcome this kind of challenge !
http://money.cnn.com/2015/02/10/pf/lott ... rs-losers/
The information contained herein, while not guaranteed by us, has been obtained from from sources which have not in the past proved particularly reliable.
Re: I'm not a bad Boglehead
In charge of my office pool of buying Powerball.....
.....odds of winning are 1 in 175,000,000...but then again I've lost more then $2 in my day!
Lucky3
.....odds of winning are 1 in 175,000,000...but then again I've lost more then $2 in my day!
Lucky3
Re: I'm not a bad Boglehead
Diversify across all the numbers and you'll be a winner for sure!
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Re: I'm not a bad Boglehead
Good luck!
It's not my thing. But I always thank the folks in my state for contributing to the state coffers, so that I don't have to contribute quite so much.
It's not my thing. But I always thank the folks in my state for contributing to the state coffers, so that I don't have to contribute quite so much.
Re: I'm not a bad Boglehead
My lottery dream is to be the first big prize winner who has never, ever bought a lottery ticket. Unlike my father, I have accepted gifts of lottery tickets. (He would throw them away or tear them up in front of the giver.) I actually won $25 when my mom gave me my first ticket in the (then) new Michigan lottery. And I have made a few dollars on scratch-offs I won from a radio station. But I don't buy lottery tickets.
That said, I don't think that being a Boglehead is about "purity."
Let us know if you win.
That said, I don't think that being a Boglehead is about "purity."
Let us know if you win.
- FelixTheCat
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Re: I'm not a bad Boglehead
485 million. I wonder how fast you go blow it if you tried; Just call me Brewster.
Felix is a wonderful, wonderful cat.
Re: I'm not a bad Boglehead
My beer purchases are guaranteed to pay off, so I consider them a better investmentanonforthis wrote:We spend about $10 a week on scratch offs and powerball tickets. We do not spend any money on beverages nor alcohol therefore this expense is well worth it. At least we get some good dreams out of this expense.
Re: I'm not a bad Boglehead
I'm going to the casino this weekend to gamble away my allowance and I'm looking forward to it.
Re: I'm not a bad Boglehead
I always find this strange - I guess the normal $15Million isn't enough for most people to bother!
Re: I'm not a bad Boglehead
You have to be at least 21 to bet in a casino. Are you old enough but still getting an allowance?gator15 wrote:I'm going to the casino this weekend to gamble away my allowance and I'm looking forward to it.
Chaz |
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Re: I'm not a bad Boglehead
Will be buying a ticket however I plan to take the winnings to Vegas and let it ride on the roulette wheel. $485 million is nice buuuut 17 billion is even nicer. Now that's some REAL life changing money.
I’d trade it all for a little more |
-C Montgomery Burns
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Re: I'm not a bad Boglehead
It has been years since I bought a lotto ticket but truthfully, buying one ticket is less than a cup of coffee at Starbucks.
One ticket gets you in the game and you can't win without being in the game. However, buying more than one ticket doesn't get you anything to speak of. Getting in the game...i.e. buying one ticket...gets you odds of about 1 in 1 Gazillion. OK, infinitesimally small but at least you are in the game. Buying two tickets gets you odds of 2 in 1 Gazillion, i.e. you'd be better off spending that second couple of bucks toward the latte.
One ticket gets you in the game and you can't win without being in the game. However, buying more than one ticket doesn't get you anything to speak of. Getting in the game...i.e. buying one ticket...gets you odds of about 1 in 1 Gazillion. OK, infinitesimally small but at least you are in the game. Buying two tickets gets you odds of 2 in 1 Gazillion, i.e. you'd be better off spending that second couple of bucks toward the latte.
Re: I'm not a bad Boglehead
Just read the article... Not very uplifting. Seems you need to be disabled, broke and an inveterate gambler to win. Guess I'll do something else with my allowance. Maybe I will buy jawbreakers and other candies. That always makes my dentist ( and his family) happy.noyopacific wrote:Even lottery winners are often losers in the end (they squander the money.)
I hope you win and then demonstrate that the tenants of Boglehead-ism can help you overcome this kind of challenge !
http://money.cnn.com/2015/02/10/pf/lott ... rs-losers/
Some days I'm. Just convinced there is no easy way to get rich
Re: I'm not a bad Boglehead
For me, the value lies in the entertainment, just thinking about the possibilities. What if?
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Re: I'm not a bad Boglehead
FreemanB wrote:My beer purchases are guaranteed to pay off, so I consider them a better investmentanonforthis wrote:We spend about $10 a week on scratch offs and powerball tickets. We do not spend any money on beverages nor alcohol therefore this expense is well worth it. At least we get some good dreams out of this expense.
Yeah, I can tell by your belly.
I kid I kid
Re: I'm not a bad Boglehead
$20 bucks already down the drain for 10 tickets.
Re: I'm not a bad Boglehead
You could get the same dreams with 1 ticket a week. Why buy $10 worth?anonforthis wrote:We spend about $10 a week on scratch offs and powerball tickets. We do not spend any money on beverages nor alcohol therefore this expense is well worth it. At least we get some good dreams out of this expense.
Re: I'm not a bad Boglehead
Fun thread!!!
About 3 times a year when the pot grows ridiculously large my wife and I buy 3-4 tickets. We have fun at dinner talking about what we would do. It's fun because we keep coming back to things we can do now, just don't make the time for and it sort of refocuses us! The night before dinner is a lot of laughs and makes me realize we need to do more of that stuff.
And hey, somebody's got to win!!!
About 3 times a year when the pot grows ridiculously large my wife and I buy 3-4 tickets. We have fun at dinner talking about what we would do. It's fun because we keep coming back to things we can do now, just don't make the time for and it sort of refocuses us! The night before dinner is a lot of laughs and makes me realize we need to do more of that stuff.
And hey, somebody's got to win!!!
“Attention is the rarest and purest form of generosity.” |
— Simone Weil
- Clearly_Irrational
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Re: I'm not a bad Boglehead
There is nothing wrong with entertainment expenses, just don't mis-classify it as investment.artiegene wrote:But I am going to stop by the grocery store on the way home from work and ...... buy some Powerball tickets! Anyone else?
- Clearly_Irrational
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Re: I'm not a bad Boglehead
On occasions where the prize gets really large I sometimes buy a ticket. The hour or two worth of daydreaming is worth the price. On an amusing note, if I were to actually win I couldn't plow it all into my portfolio right away, daily volume for my small cap value fund is only around $22million or so. Basic plan for the money is to divide it into five evenly sized buckets:Gropes & Ray wrote:I was just discussing with a co-worker how I gladly pay the $2 for the false hope of getting away from all of this crap.
1) Annuities (So that if I'm stupid with the rest of the money I still don't end up having to go back to work)
2) Stocks and Bonds (Same portfolio as now but MUCH MUCH bigger, oh and in taxable obviously)
3) Rental properties (I might have to buy bigger ones if I don't want to spend the next few years shopping)
4) Direct business ownership (probably not smart to go from full employment to full retirement all at once, this way I get more schedule control and downshift slowly)
5) Gratuitous spending (A nice house in the country, a flashy sportscar and some world travel for sure)
Re: I'm not a bad Boglehead
I bought one ticket...
KlangFool
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Re: I'm not a bad Boglehead
After this thread I considered it, but the odds of me being killed in an auto accident on the way to the 7-11 to buy the ticket is way too much risk for me today. I'll stay home and be a loser.KlangFool wrote:I bought one ticket...
KlangFool
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- backpacker
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Re: I'm not a bad Boglehead
I bet that if you called your favorite ETF provider and told them you wanted to put $200 million in one of their ETFs, they would be able to create some shares for you.Clearly_Irrational wrote: On an amusing note, if I were to actually win I couldn't plow it all into my portfolio right away, daily volume for my small cap value fund is only around $22million or so.
For that matter, with $200 million to invest, direct indexing is probably the way to go. You could hire someone to manage a portfolio of individual stocks full time and still easily save $1 million a year in expenses!
Re: I'm not a bad Boglehead
No.
artiegene wrote:.... buy some Powerball tickets! Anyone else?
"The two most important days in someone's life are the day that they are born and the day they discover why." -John Maxwell
Re: I'm not a bad Boglehead
No worries, the drawing is not until tomorrow night (Powerball do Sat and Wed night drawings).mickeyd wrote:After this thread I considered it, but the odds of me being killed in an auto accident on the way to the 7-11 to buy the ticket is way too much risk for me today. I'll stay home and be a loser.
The frenzy (as the lottery officials/enthusiasts) really starts on the day of the drawing. So tomorrow be ready to see a 500mil+ advertised jackpot.
I've been doing lotto with a couple of my buddies for cheap entertainement when the jackpots get real big (like 250mil+).
People blow $2 on lots of other useless things, might as well get a shot at a dream.
You know the big jackpot is won about a dozen times a year so might as well get in it.
Re: I'm not a bad Boglehead
I'm waiting for it to be a half a BILLION .
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Re: I'm not a bad Boglehead
Yup. Nobody has been proven to successfully pick the lottery numbers in the long-term. One should buy an index containing all the numbers!Tanelorn wrote:Diversify across all the numbers and you'll be a winner for sure!
Re: I'm not a bad Boglehead
I have never spend any money on lottery tickets.
But I visit the Casinos once in a while. I find it more entertaining. This may be also considered a none Blogleheadish act.
But I visit the Casinos once in a while. I find it more entertaining. This may be also considered a none Blogleheadish act.
Re: I'm not a bad Boglehead
Yes. I turned 21 years old today. Time to celebratechaz wrote:You have to be at least 21 to bet in a casino. Are you old enough but still getting an allowance?gator15 wrote:I'm going to the casino this weekend to gamble away my allowance and I'm looking forward to it.
Re: I'm not a bad Boglehead
In the brief, charming diaries his publlishers importuned him to keep toward the end of his life, Alec Guinness confessed his penchant for occasionally buying a lottery ticket or two.
My Name Escapes Me: The Diary of a Retiring Actor (Penguin Books, 1998)
A Positively Final Appearance (Penguin Books, 2001)
Guinness died 08/05/2000. A fine actor and remarkable man.
Best regards,
My Name Escapes Me: The Diary of a Retiring Actor (Penguin Books, 1998)
A Positively Final Appearance (Penguin Books, 2001)
Guinness died 08/05/2000. A fine actor and remarkable man.
Best regards,
Harry at Bradenton
Re: I'm not a bad Boglehead
Aha have the exact same reasoning sometimes !Gropes & Ray wrote:I was just discussing with a co-worker how I gladly pay the $2 for the false hope of getting away from all of this crap.
"Greed may not be good, but it’s not so bad, either. People think greed is just for money and power. But everyone wants something they don’t have." |
ChasingGains.org
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Re: I'm not a bad Boglehead
I bet it'll be around $525 or $550 million before the drawing.Kiter wrote:I'm waiting for it to be a half a BILLION .
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Re: I'm not a bad Boglehead
You have a 1 in 175,000,000 chance of winning. That is 0.0000006% change of winning... The Lottery is a tax on the poorartiegene wrote:But I am going to stop by the grocery store on the way home from work and ...... buy some Powerball tickets! Anyone else?
Re: I'm not a bad Boglehead
Was listening to Dr Karl on Triple J a couple of weeks ago and he said pretty much the exact same thingWorking2notWork wrote:You have a 1 in 175,000,000 chance of winning. That is 0.0000006% change of winning... The Lottery is a tax on the poorartiegene wrote:But I am going to stop by the grocery store on the way home from work and ...... buy some Powerball tickets! Anyone else?
"Gambling is a tax on people who don't understand mathematics"
"Greed may not be good, but it’s not so bad, either. People think greed is just for money and power. But everyone wants something they don’t have." |
ChasingGains.org
Re: I'm not a bad Boglehead
I think the discounted tickets provide better value.
Re: I'm not a bad Boglehead
There's no schadenfreude in an article about winners who don't screw up -- or talk to reporters. You don't hear about the successful ones because they fly under the radar and keep quiet. So then, who are you going to write about? I'll be able to handle when I win Powerball. Sorry, I won't be able to come here and tell you all about it, though.choices wrote:Just read the article... Not very uplifting. Seems you need to be disabled, broke and an inveterate gambler to win. Guess I'll do something else with my allowance. Maybe I will buy jawbreakers and other candies. That always makes my dentist ( and his family) happy.noyopacific wrote:Even lottery winners are often losers in the end (they squander the money.)
I hope you win and then demonstrate that the tenants of Boglehead-ism can help you overcome this kind of challenge !
http://money.cnn.com/2015/02/10/pf/lott ... rs-losers/
Some days I'm. Just convinced there is no easy way to get rich
Re: I'm not a bad Boglehead
Larry Ellison bought a Hawaiian island for $500 million . Maybe there is a smaller one available for sale that you could buy for the after-tax value of the Powerball if you win ? It might take more than a few days to close the sale though, so maybe not the fastest way.FelixTheCat wrote:485 million. I wonder how fast you go blow it if you tried; Just call me Brewster.
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Re: I'm not a bad Boglehead [buying Powerball ticket]
The last time I bought a ticket is when everyone in my IT org formed a pool for a big jackpot. We all chipped in $5.
I didn't want to be the one guy left running the place and getting all the problem tickets after the rest of the gang retired.
I didn't want to be the one guy left running the place and getting all the problem tickets after the rest of the gang retired.
Re: I'm not a bad Boglehead [buying Powerball ticket]
Personally, since I do not live in a state that allows one to claim lottery winnings anonymously and I get horribly stressed when hassled, the notoriety of winning such a jackpot would not be worth the jackpot itself. In my mind, it's an extreme example of "be careful what you wish for", because along with all that money (and the wishes it can provide) come a boat load of hassles such as requests for "loans", "business proposals", and outright crime. I'd rather be comfortably, and anonymously, middle-class than rich and in the spotlight.
Re: I'm not a bad Boglehead
As I recall that did work. At least once. I think it was an Austrailian group that bought all the numbers for the Virginia lottery and won.Tanelorn wrote:Diversify across all the numbers and you'll be a winner for sure!
That's what I do: I drink, and I know things. --Tyrion Lannister
Re: I'm not a bad Boglehead [buying Powerball ticket]
Yeah, I'm sure the hardest part would be beating back the hoards of friends that you have all of a sudden. But it sure would be nice to struggle with the question of "Where do I put the first $100,000,000? VTI or Wellington?
Re: I'm not a bad Boglehead
Yeah, and they made it illegal afterwards (actually I think they caught on and stopped them 1/3 of the way though printing all the tickets, but luckily they still won). Hopefully the active management crowd won't find a way to do something similar to stay relevant.tludwig23 wrote:As I recall that did work. At least once. I think it was an Austrailian group that bought all the numbers for the Virginia lottery and won.Tanelorn wrote:Diversify across all the numbers and you'll be a winner for sure!
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Re: I'm not a bad Boglehead [buying Powerball ticket]
I think if I won I'd put half in Vanguard in a 3 fund and half in Betterment to see if their tax loss harvesting is worth it. I promise to post a "critique my portfolio" post if I win.
Re: I'm not a bad Boglehead
The expected return of a Powerball ticket PEAKS at about -57% (i.e. you can expect 0.43 per dollar) - those darn ties!AZAttorney11 wrote:The pre-tax cash option value exceeds the odds of winning, so your decision isn't that irrational
Wait! Depending on your state of residence the after-tax value of the cash option is greater than your odds of winning. So, perhaps allocating a very, very small portion of your portfolio to Powerball is rational in some cases
http://www.circlemud.org/jelson/megamillions/