10 Things You Can Buy With Powerball Jackpot After Taxes: SPY, Crypto, Teslas, Real Estate, Sports Teams And More

Saturday’s Powerball jackpot has soared to $1.6 billion as one of the biggest lottery jackpots of all time. Here’s a look at how to play Powerball and what you could buy with the massive payout.

The Powerball Jackpot: Saturday’s Powerball jackpot is $1.6 billion, the largest Powerball and lottery jackpot of all time.

There have been 39 consecutive Powerball drawings without a winner. If there is no winner Saturday, the consecutive streak of no winners will tie a record at 40 drawings.

The odds of winning the Powerball jackpot are 1 in 292.2 million. The overall odds to win a prize are 1 in 24.9 tickets.

Powerball tickets can be purchased for $2 and are sold in 45 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands.

Those who play can select their own numbers or receive a random selection. Five numbers between 1 and 69 are selected, along with a Powerball number 1 to 26. Here are the payouts:

• 5 numbers + Powerball: Grand Prize
• 5 numbers: $1 million
• 4 numbers + Powerball: $50,000
• 4 numbers: $100
• 3 numbers + Powerball: $100
• 3 numbers: $7
• 2 numbers + Powerball: $7
• 1 number + Powerball: $4
• Powerball: $4

Lottery Winnings: Winners of large jackpots can take a lump sum cash payment or choose to be paid out the full amount over 30 years, with one payment upfront and additional payments each year going up by 5% to fight inflation.

The cash payout is lower than the full payout over 30 years. The current cash payout listed on the lottery’s website is $782.4 million. A winner will have to pay federal taxes of 37% on the winnings and will be responsible for state taxes depending on where they reside.

After federal taxes, the lump sum payout is $492,912,000, which could be saved, invested or spent on various items by the winner. Here’s a look at 10 items that could be considered.

1. S&P 500: If a winner decides to invest the money, they could consider the SPDR S&P 500 ETF Trust SPY, which tracks the broad based S&P 500 Index of 500 of the largest U.S. companies. The $492,912,000 could purchase 1,309,751.82 shares of SPY with the winnings. The S&P 500 has averaged annual returns of 9.89% from 1992 to 2021, which would be a better return than the 5% return on choosing the 30 years of payouts.

2. Cryptocurrency: A potential investment for the winner could be to put the money in cryptocurrency, which is often more volatile than the stock market. The winnings could be split between three popular cryptocurrencies of Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD. The winnings would turn into 7,702.95 BTC, 100,357.93 ETH and 1,293,732,283.46 DOGE based on prices at the time of writing.

3. Investing with the Oracle of Omaha: Legendary investor Warren Buffett has been one of the top stock pickers of the last 50 years. While Buffett would tell the winner to put their money into bonds or index funds to preserve wealth, the winner could buy 1,714,715.1 B shares of Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B).

4. Apple Stock: one of the top-performing stocks of the last 10 years is Apple Inc AAPL. At a market capitalization of $2.2 trillion, Apple is the largest publicly traded company in the world. Apple could remain a market leader for years to come, making it a potential investment idea for someone over the next 30 years. The $492,912,000 could purchase 3,562,017.6 shares of Apple.

5. Tesla Stock: Winning $492.9 million would not put a person on the Bloomberg Billionaires list like Tesla Inc TSLA CEO Elon Musk, who tops the list at $190 billion. The winnings could make a person a large shareholder in the electric vehicle company. The winner could purchase 2,375,823.0 shares of Tesla.

6. Tesla Model Ys: One of the most popular electric vehicles is the Model Y from Tesla. A winner could choose to buy a collection of Tesla Model Ys for themselves or give them away to family members and friends. The winnings could buy 7,250 Tesla Model Ys based on a price of $67,990 each before savings.

7. Real Estate: One popular option for investing at least a portion of the winnings could be real estate. The average home price in the U.S. is $357,810, according to Zillow Group Z. The winnings could buy 1,377 average-priced homes in the U.S. The winner could hold the homes to gain value over the years or choose to rent them out. Benzinga has a guide on how non-lottery winners can invest in real estate here.

8. Sports Teams: For the ultra-wealthy, buying a professional sports team has been a way to preserve and gain wealth. Despite the large winnings of $492.9 million, the winner would only be able to buy an NHL or MLS team among the largest North American sports leagues. Buying a team in the MLB, NBA or NFL would set a person back over $1 billion. The $492.9 million could likely buy the Arizona Coyotes, valued at $465 million in the latest Sportico team valuations. In the MLS, eight teams are valued at $495 million or less by Sportico, giving the lottery winner more potential options.

9. Meme Stocks: Two of the most popular meme stocks over the last two years have been GameStop Corp GME and AMC Entertainment Holdings AMC. Split evenly, the winnings could buy 9,317,807.18 shares of GameStop and 43,620,531.0 shares of AMC.

10. NFTs: Another potential high risk/high reward investment could be non-fungible tokens (NFTs). The winnings split between two of the largest NFT collections of all time could buy 2,152 Bored Ape Yacht Club NFTs and 2,287 CryptoPunks NFTs. Prices are based on the floor prices and the winnings would buy less than this number as there are not that many listed at the floor price.

This article is not intended as investment advice. 

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