The Powerball is up to $1.9 billion. What could Philadelphians get with the winnings?
Your own MLS team? Cheesesteaks for life?
» Update: The Powerball drawing was delayed and will likely be announced Tuesday morning.
The Powerball jackpot has reached a record $1.9 billion after Saturday’s drawing resulted in no winners. If Monday’s drawing produces a winner, they could take home the nearly $2 billion annuity or about $929.1 million as a lump sum, which would mark the all-time second-highest cash prize.
The odds of winning are slim — like, really slim. A Powerball jackpot winner would have to match all five white balls plus the red Powerball. Experts say the odds of a perfect match are one in 292.2 million, which is why the lottery has been dragged out for three months without a winner.
Of course, if someone got that lucky, they’d be met with some caveats.
Lottery winners can choose from a one-time lump sum payment or annuity payments over 30 years.
Financial experts say the lump sum is the better — and more popular — route. But remember, with those earnings also come taxes and placement in the top federal tax bracket.
Winners will owe 24% to the IRS in federal taxes and potentially more in state taxes depending on where they live.
If the winner is from Philly, for example, they’d be subjected to Pennsylvania’s 3.07% state tax.
What could a Philly local buy if they won Monday’s Powerball drawing?
So let’s just say, hypothetically, that Philly winner wants to take the $900 million lump sum. What could they buy?
Here are some options (before tax and without real-life implications):
The Philadelphia Union: The MLS team has a value of $530 million according to Sportico.
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 have cost $144 million in 2018.
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 has an estimated value of about $81.5 million, but experts say it would likely go for more at auction.
A 2018 Philadelphia Eagles Super Bowl ring for you and all your friends: While the exact price of the Eagles’ 2018 ring was not disclosed, ESPN said the most expensive Super Bowl rings ever produced rang up at $36,500 each for 150 rings for the New England Patriots, a total price of $5.475 million.
A replica of the bronze Rocky statue: This one will hinge on if Sylvester Stallone agrees to sell it to you. 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.
Cheesesteaks for life: Even rounding up the menu prices at John’s Roast Pork to factor for inflation and tip, the lump sum will keep you infinitely fed.
A mansion in Queen Village: For $2.3 million — a drop in the bucket for the Powerball winner — this 6,900 square-foot home could be yours.
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.
Financial experts say winners should prioritize high-interest debt
Just in case you get lucky, we caught up with a financial expert to better understand the best realistic next steps.
Howard Dvorkin, CPA and chairman of Debt.com, says that the smartest thing a lottery winner can do is turn to their debt.
“You should pay off every personal debt with an interest rate that exceeds what you can reliably earn in the stock market,” he said. “That means every credit card, most car loans, and some mortgages.”
Then, Dvorkin said a winner should figure out how much money they’d need to retire. From there, they should invest.
“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.
Dvorkin added, “I know that doesn’t sound like fun, but after you take these steps, you should have plenty of money left over. Blow some of it. I’m serious, spend a chunk irresponsibly. You can now do so without any guilt, because you took care of business first.”
Those steps could help a winner ensure they will continue to earn money from investments and prevent them from becoming “one of those sad headlines, like ‘Lottery Winner Declares Bankruptcy,’” Dvorkin said. “It happens more often than you think.”