How To WIN THE LOTTERY - 100% Guaranteed

What's up guys, it's Graham here! So, I think we've just unlocked the brand new infinite money glitch because, as of yesterday, the expected payout of each Powerball lottery ticket became positive. Meaning the total prize pot has grown so massive that if you were to buy every single number combination and were the only winner, you would walk away with the cool 241 million dollars after taxes and after expenses.

So, what's the catch? Well, besides it being incredibly difficult to buy all 292 million numbers and hope that no one else matches the exact combination—which is totally something that Mr. Beast would do—that doesn't stop people from trying. So, with the lottery now officially paying out a record two billion dollars, with each ticket having an effective ROI of 20 cents, I think it's worth breaking down your best chances at statistically winning, the reason why so many lottery winners go broke, and exactly how you could invest such a large amount in the event that you win so that you don't need to go into work tomorrow.

Oh, and by the way, I may have driven to Arizona to buy 500 tickets, so in the event that I win, I'll be giving a million dollars to anybody who subscribes and comments down below for the YouTube algorithm. So, thank you guys so much!

Now, in terms of the two billion dollar infinite money glitch, here's what you need to know. All right, so before we talk about why the lottery was created and how it's considered to be a tax on the poor, it's important to understand your chances of winning. Because even though the odds are one in 302 million, it's hard to put into perspective just how minuscule that amount really is. Just consider this: your chance of being struck by lightning is one in seven hundred thousand, your chance of being attacked by a shark is one in five million, your chance of being hit by an asteroid is one in 75 million, and your chance of flipping a coin heads 27 times in a row is one in 132 million.

But I gotta say, the nail in the coffin isn't all of those random statistics; it's this: if you knew that a dog was only going to bark once in the next nine years, you would have a better chance at guessing the precise time of the bark down to the second than winning the Powerball. Now, I suppose that you could theoretically buy all 292 million two hundred thousand possible winning combinations for 584 million four hundred thousand dollars when the two billion dollar jackpot and beat the system, assuming you're the only winner.

But even if you had a full 48 hours to buy every single winning combination, you would need to be printing 1,700 tickets every single second to make that plan work. Not to mention, it's also found that the higher the potential prize, the lower the expected payout because the more tickets that are sold, the more likely the top prize is going to be split among several winners. But hey, on the bright side, with hundreds of millions of tickets being sold, somebody has to win, right?

Well, before we go into the research of how to win, you first have to consider if this is something you actually want. Because with so much money on the line, you have to think: why do so many lottery winners end up going completely broke? Well, all of this begins with how the lottery was created because, unlike what most people think, the lottery is not some altruistic gift to give people the chances of winning the life they've always dreamed of. Instead, the true motive in the very beginning was to help fund the state and local government instead of raising taxes.

Yeah, seriously. The reality was back then, many states had to raise additional money to pay for public infrastructure, but it was seen as unpopular to raise taxes. That's why the lottery took its place, and it blossomed. It worked on a system where a certain range of numbers would be randomly drawn on a regular basis, and if no tickets were sold for the winning combination, the payout would increase in proportion to the number of tickets sold.

The process repeats until eventually someone wins. However, over time, states began to realize that the larger the expected payout, the more money they began to make, even if the odds of winning substantially declined. After all, if nobody wins, the money rolls over into the next one, causing the jackpot to go up even further, causing even more people to buy in and raising even more money.

But how does that work in terms of you actually winning? To start, assuming you're fortunate enough to match all six winning numbers, that headline amount that you see is not going to be the amount that you get. In fact, it's not going to be anywhere close. See, if you want that elusive 1.9 billion dollar amount, you'll have to agree to take that in an annuity, which is broken up into 30 evenly distributed annual payments that increase by five percent every year.

By the time all 30 payments are finalized over 30 years, you'll end up with the amount that's shown. But this would be a really, really bad deal to take for reasons I'll explain shortly. That's because you also have the option to take the lump sum payment, which works out to be 929 million dollars before tax. From there, you'll be left with 585 million dollars after tax to spend however you want, which is still a lot of money, but it's only about 25 percent of the amount that's advertised that many people expect to win.

So, what makes the annuity payment so much worse if you end up with more? Well, if you consider that if you invested the 538 million dollars in average to six percent return, you would add more than 3 billion dollars by the time your annuity paid out the full two billion dollars. So there you go! You're now hypothetically one billion dollars richer because you decided to click on this video, and hopefully hit the like button as well.

Although, in terms of exactly how you can invest this money and why so many lottery winners end up broke, filing for bankruptcy, these are the realities. Because as fun as it could be to think about winning, there is a dark side that needs to be discussed. Right off the bat, on the surface, it's estimated that a third of all lottery winners declare bankruptcy, and seventy percent lose all of it within just a few years.

Other studies have shown that lottery winners become frequently estranged from family and friends and incur greater incidents of depression and divorce than those that did not win the lottery. Why does this happen, you might ask? Well, once you begin digging deeper, you'll begin to realize the type of person to go and buy a lottery ticket generally has very little financial education and very little savings, hence why they're buying a lottery ticket in the first place.

Of course, that's not to say that wealthy people don't buy lottery tickets for fun, but it's estimated that 40 percent of lottery ticket purchasers in California were unemployed. It was also found that the majority of lottery tickets were purchased in low-income zip codes, with 60 percent coming from those at the lowest 30 percent of income. So statistically, if a person without any financial literacy happens to score a billion dollars, chances are they're not going to have the sophistication to properly manage it.

Then you combine that with all of your friends and family asking for handouts, sob stories, risky investments, extravagant purchases, and pressure from everybody that you know, tension from a spouse who maybe wants to do something else with the money, and it's easy to see how the lottery could quickly go from being a dream to becoming a nightmare.

That's why the lottery is often referred to as a regressive tax on the poor, and it's pretty mind-blowing in terms of just how much money this generates. In fact, some states even earn more revenue from the lottery than they do from corporate income taxes. And after everybody is paid out, you'll receive on average just 31 cents worth of winnings for every one dollar that you spend.

But even with all of that said, let's assume for a moment that you defy the odds and you win. How could you avoid all of these issues? The first thing that you should do is tell nobody. Don't post about it online, don't tell your friends, and don't brag about it to your family. If you do, there's a strong chance that you'll be targeted for theft, extortion, or random requests from people that you wouldn't want to hear from.

Second, get an attorney. Even though most states require that you publicly claim your prize, you could take the safer option by setting up a blind trust held within a trust to remain anonymous. This way, nobody has to know that you're the next billionaire. Third, take the lump sum. Like I mentioned, mathematically you'll end up with a lot more money over 30 years if you invest it than if you take the annuity.

On top of that, tax laws are likely to change over the next few decades, so it's a lot safer to take the guaranteed tax upfront than risk rates going up in the future. Finally, do absolutely nothing for the first year. Realistically, it's best to calmly and rationally approach the situation with a level-headed perspective with professionals who know what they're doing. The more time you have to set that up in advance, the better.

But in terms of investing the money, here's where the fun begins, and this is your chance to become one of the richest people in the world with just a few steps. Well, like I said, assuming you took the lump sum and ended up with 528 million dollars after tax, here's how you could distribute it. First, I would put 150 million dollars in a low-fee total stock market index funds like VTSAX. This gives you exposure to the entire U.S. stock market, and assuming you spend just three percent of it annually, you'll be able to get 375 thousand every single month without ever running out of the principal.

Second, I would put another 150 million dollars in a low-fee bond market index fund like VBTLX. This would give you a fairly safe and stable investment with a lot less volatility than stocks, and as of now, their bond funds are offering a 4.1 percent yield. In your money, assuming we did the same thing as above and only spent three percent of it, that's another 375 thousand dollars every single month without running out.

Third, I would take another 75 million dollars and spread that throughout fully paid off triple net Class A commercial real estate in the U.S. This would encompass large office buildings, warehouses, restaurants, gas stations, and anything with a strong corporate guarantee that comes with a 10 to 30-year lease. This should give you some extra diversification, really good tax benefits, and a five percent return if you invest conservatively.

Again, assuming you spend just three percent of that, you'll have another 187,500 a month in income. The fourth, I would take another 75 million dollars and spread that throughout prime residential real estate around the coast. Just like the previous example, you could very easily generate a four percent return, spend just three percent of it, and have another 187,500 a month in income.

Then after that, fifth, I would take another 40 million dollars and invest that throughout two to ten-year treasuries, which are currently paying over four percent. This would act as your emergency fund just in case something were to happen, and preferably this is money that you won't be touching whatsoever unless you absolutely have to.

Now sixth, that leaves you with 38 million dollars left over to spend however you like, with no strings attached. With this, you could buy a mansion, a yacht, whatever car you could think of. Money isn't an object, and you'll have a very conservative recurring income of 1.1 million dollars every single month, no matter what happens, without ever running out.

Besides that, though, here's the thing: mathematically, there's never really a point where the lottery makes sense to buy. Even though each ticket has an expected positive value of 20 cents, you would have to risk an exorbitant amount of money to ever realize those profits to the point where it's just not even worth it. No, sure, somebody wins—mostly the government—and it's fun to think about what you would do if that were you, but realistically, in my opinion, it should just end there.

In fact, it was found that during times of lottery records, even if you bought every possible winning combination to guarantee winning the jackpot, you would only have a 22 percent chance of keeping the jackpot all to yourself. On top of that, lottery winners were shown to be no more happier than those who didn't win. So all things being equal, it's not a wise option.

That's why if you buy a ticket for fun, as the price to pay for the ability to daydream about what you would do if you were to win, then by all means, for entertainment, go for it. But financially speaking, like I said, you would be better off doing just about anything else than buying the lottery. But just in case, I bought about 500 tickets, so if I win, I'll be giving a million dollars to somebody who subscribes and comments down below for the YouTube algorithm. You never know!

And like I said, it's totally free; you may as well just subscribe anyway because I post three times a week. Enjoy! Thank you guys so much for watching and until next time!