MegaMillions for the Big Win

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It's kind of depressing to some extent when you think about the cash option when it comes to the lottery, that the amount listed is not even close to what you take home if you win the jackpot if you aren't taking the annuity, which most people don't. Part of the reason for this is because the published prize is based on the value of the annuity invested over 29 years in a pari-mutuel payout. In other words, the real value of the prize pool is much less than the published pari-mutuel value. So, the current $514 million is actually only worth $241 million today, and $514 million 29 years from now. Between state and federal taxes, that $241 million on the cash option will only be worth $120.5 million. That's what you will actually take home if you win and choose the cash instead of the annuity. It's still a nice loot, no doubt. Now, if you invest the win, assuming a very conservative 6% return annually, you can take home $7.23 million a year. Not bad. Doing the math this means in 29 years you would take home $209.67 million, and added to your total cash prize, that's $330.17 million. Despite the lesser value one thing I can certainly say is, I wouldn't be complaining.