The Powerball jackpot is up to $1 billion. What could Philadelphians do with the winnings?
The Powerball jackpot is up to $1 billion after no winners were selected Monday. What could a Philadelphia winner do with the prize?
The Powerball jackpot is estimated at $1 billion after no winners were drawn Monday. It marks the third time in the game’s history the winnings have hit at least $1 billion.
A winner Wednesday night would be able to choose between a roughly $1 billion annuity over 30 years or a lump sum payment of about $516.8 million before taxes, according to Powerball.
But the chances of winning are ridiculously slim. As in, one in 292.2 million slim. Still, winning something is possible. In fact, the Pennsylvania Lottery said Tuesday that a Delaware County shop sold a $1 million winning ticket.
According to the state Lottery, the Bethel Food Market in Garnet Valley will receive a $5,000 bonus for selling the ticket. It’s unclear who the lucky local ticket holder is and won’t be revealed unless the purchaser claims and validates the ticket.
So let’s say — hypothetically — a Philly winner won the big $1 billion this week and opted for the lump sum.
What would that buy?
How a personal finance expert says you should spend Powerball winnings
Winners would owe 24% to the IRS in federal taxes and potentially more in state taxes. Our hypothetical Philadelphia winner would be subjected to Pennsylvania’s 3.07% state income tax.
Howard Dvorkin, CPA and chairman of Debt.com, says that the smartest thing a lottery winner could do is pay off debt. From there, he said, the winner should figure out how much would be needed to retire. The rest after that should be invested.
“Consult a professional and consider Roth IRAs, which let your money grow tax-free since you paid those taxes up front — because, suddenly, you have enough cash on hand to do that,” he said.
Those steps could help ensure that a winner would continue to earn money from investments and keep from running into financial problems, Dvorkin said. “It happens more often than you think.”
What could a Philly local buy after winning Wednesday’s Powerball drawing?
Hypothetically again, let’s imagine our Philly winner opts for the $516.8 million lump sum. Here are some options (before taxes and after setting aside any real-life implications):
Outfit every Philadelphia school with air conditioning: School district officials say that the cost and labor to upgrade buildings’ electrical capacities outweigh the price tag associated with buying all the air conditioning units. While an exact price has not been disclosed, the district estimated upgrading all the buildings would cost $144 million in 2018.
Land in Beyoncé's Club Renaissance throughout her entire tour: At Beyoncé's sold-out Philadelphia tour stop last week, tickets ranged from a few hundred to a few thousand dollars depending on the view. The most coveted areas were Bey’s Club Renaissance, B-Hive, and VIP seats — which stationed fans in a pit within the stage’s center, along the catwalk, or on rafters positioned on the stage, respectively. Tickets for Bey’s upcoming stops in the coveted areas are selling for several thousand dollars.
Van Gogh’s “Sunflowers” at the Philadelphia Museum of Art (probably): The estimated value of famous works of art — including Vincent van Gogh’s Sunflowers — ebbs and flows over time. The famous painting is estimated to cost about $81.5 million, but experts say it would likely go for more at auction.
Cheesesteaks for life: Even rounding up the menu prices at John’s Roast Pork to factor in inflation and tip, the lump sum would keep you infinitely fed.
A million gold-leafed cheeseburgers: Philly’s Drury Beer Garden caught local attention for its decadent luxury cheeseburger, clocking in at about $750 an order. It includes Wagyu beef, aged Irish cheddar, truffles, caviar, lobster, and buns encrusted in gold leaf. While you’re at it, you can add a bottle of $4,800 cognac to wash it down. After all, you can afford it.
A replica of the bronze Rocky statue: This one will hinge on Sylvester Stallone’s agreeing to sell it. But in 2017, Stallone had the winning bid of $403,657 to purchase a replica of the Rocky III statue that lives at the Philadelphia Museum of Art.
The Liberty Bell (replica): According to a Billy Penn article from 2017, the Christoph Paccard Bell Foundry office in Charleston, S.C., said it would cost $75,000 to purchase a full-size Liberty Bell.
The next jackpot drawing will take place Wednesday night.