Usually, when the lottery gets pretty large (~$100 million), people take the cash, roughly 70%, and run.  They’re immediately catapulted into the upper echelons of society—to a degree.  After all, you can’t purchase class.  Very often soon thereafter, the winners have found themselves on the verge of bankruptcy.  Whether it be from frivolous spending, irresponsible investing, poor philanthropic endeavors (read: giving it away to con-artists, leeches, mooches, etc.), or simply working as a private bank, making loans that will never be repaid.  Whatever the reason may be, their often simple and generally happy lives are in shambles only a few short years after and their fifty or sixty million dollars has evaporated right before their very eyes.

This round however, it’s a little different.  The jackpot has risen to $640 million, and if there is a sole winning ticket, the winner has the choice of a $462 million lump sum payment or 26 annual payments totaling the full amount.  It’s often advised to take the lump sum and run because the annual payments wouldn’t be enough to properly invest and see large enough returns.  The annual payments for this specific draw would be roughly $24.5 million; that’s much more than enough to live lavishly with no cares in the world and still have a large sum to invest.

With all that taken into consideration, the hypothetical sole winner tonight has the chance to go beyond the typical tragic story of rags-to-riches-to-rags.  A $5 million bank account is most definitely nothing to scoff at, and the same goes for $25 million.  There are many people at this level, but they are still susceptible to failure and being completely broke.  But when the balance on your ATM receipt is written in scientific notation, you are in the highest strata of individuals: captains of industry, pioneers of technology, old money and new.  They will be placed on Forbes’ 500 because they bought a few Quick-Picks at an Arco station in Stanton, CA.

This is uncharted territory and I’m optimistic the winner(s) of this will show some restraint and be very wise.  But I wouldn’t put it past them to think they’re invincible because they don’t make what Kobe Bryant makes, they make what Kobe Bryant makes for an additional 21 years after Kobe’s contract has expired.  Mike Tyson spent $500 million on fancy cars, houses, and bengal tigers.  Time will tell.

If no winning tickets are pulled tonight, the jackpot will rise to $975 million.  Yes, just short of $1 billion. 

http://www.reuters.com/article/2012/03/31/us-lottery-megamillions-idUSBRE82U00W20120331