Powerball Surges To $550 Million
CHICAGO – As Americans went on a ticket-buying spree, the Powerball jackpot rose to $550 million Wednesday, enticing many people who rarely, if ever, play the lottery to purchase a shot at the second-largest payout in U.S. history.
Among them was Lamar Fallie, a jobless Chicago man who said his six tickets conjured a pleasant daydream: If he wins, he plans to take care of his church, make big donations to schools and then “retire from being unemployed.”
Tickets were selling at a rate of 130,000 a minute nationwide – about six times the volume from a week ago. That meant the jackpot could climb even higher before the Wednesday night drawing, said Chuck Strutt, executive director of the Multi-State Lottery Association, but at Wednesday night’s drawing, the jackpot remained at $550 million.
The jackpot has already rolled over 16 consecutive times without a winner, but Powerball officials say they now believe there is a 75 percent chance the winning combination will be drawn this time.
If one ticket hits the right numbers, chances are good that multiple ones will, according to some experts. That happened in the Mega Millions drawing in March, when three ticket buyers shared a $656 million jackpot, which remains the largest lottery payout of all time.
Yvette Gavin, who sold the tickets to Fallie, is only an occasional lottery player herself, but the huge jackpot means she’ll definitely play this time. As for the promises she often gets from ticket purchasers, Gavin isn’t holding her breath.
“A lot of customers say if they win they will take care of me, but I will have to wait and see,” she said.
Past winners and financial planners have some advice: Stick to a budget, invest wisely, learn to say no and be prepared to lose friends while riding an emotional roller-coaster of joy, anxiety, guilt and distrust.
“I had to adapt to this new life, “said Sandra Hayes, 52, a former child services social worker who split a $224 million Powerball jackpot with a dozen co-workers in 2006, collecting a lump sum she said was in excess of $6 million after taxes. “I had to endure the greed and the need that people have, trying to get you to release your money to them. That caused a lot of emotional pain. These are people who you’ve loved deep down, and they’re turning into vampires trying to suck the life out of me.”
The single mother kept her job with the state of Missouri for another month and immediately used her winnings to pay off an estimated $100,000 in student loans and a $70,000 mortgage. She spent a week in Hawaii and bought a new Lexus, but six years later still shops at discount stores and lives on a fixed income – albeit, at a higher monthly allowance than when she brought home paychecks of less than $500 a week.
“I know a lot of people who won the lottery and are broke today,” she said. “If you’re not disciplined, you will go broke. I don’t care how much money you have.”
Lottery agencies are keen to show off beaming prize-winners hugging oversize checks at celebratory news conferences, but the tales of big lottery winners who wind up in financial ruin, despair or both are increasingly common.
There’s the two-time New Jersey lottery winner who squandered her $5.4 million fortune. A West Virginia man who won $315 million a decade ago on Christmas later said the windfall was to blame for his granddaughter’s fatal drug overdose, his divorce, hundreds of lawsuits and an absence of true friends.
The National Endowment for Financial Education cautions those who receive a financial windfall – whether from lottery winnings, divorce settlements, cashed-out stock options or family inheritances – to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that as many as 70 percent of people who land sudden windfalls lose that money within several years.