In 2021, people spent upward of $100 billion on lottery tickets, which makes it the most popular form of gambling in the United States. States promote their lotteries as ways to raise money for things like education and veterans’ health care, without increasing taxes. But the reality is that lottery dollars end up being a drop in the bucket for state budgets. And they also create an insatiable desire for instant riches among people who may not be able to afford them.
When it comes to selecting numbers, Harvard statistics professor Mark Glickman recommends avoiding significant dates, like birthdays or ages. Instead, choose random numbers or Quick Picks to increase your chances of winning. He also advises against repeating the same number sequences because it increases the likelihood of another person picking the same numbers.
But if you want to win, it’s not necessarily a bad thing to invest a little time learning about the odds. There’s a logic to that, and it has roots in probability theory. It turns out that the longer a game goes without a winner, the better your chance of hitting one.
Lottery prizes are typically paid out as a lump sum or annuity payments, and it’s recommended that you work with a financial advisor to figure out what the best option is for your situation. A professional can help you set up your tax withholdings so you’re not hit with a large bill down the road, and you can also plan for how to invest any money left over after your winnings are taken away by government withholdings and taxes.
