Woman Wins Lottery While Trying to Prove That Nobody Wins the Lottery

But her lump sum, after-tax payment is less than half of the $1 million prize.

If there’s ever been a story about how emotions influence our financial decisions, it’s this one:

Woman Wins $1 Million Playing Lotto to Spite Husband, Proving Pettiness Pays Off

Take the case of Glenda Blackwell, a 57-year-old woman from Leicester, North Carolina. Blackwell was so fed up with how much money her husband Buddy was spending playing the lottery that, when she saw him buying Powerball tickets, she bought a $10 scratch-off to prove it wouldn’t be fruitful.

The scratch-off won Blackwell $1 million. But it gets even more interesting:

Leicester woman tries to teach husband lesson, wins $1 million on scratch-off

Blackwell says money isn’t an issue for the first time in her life.

“We’ve struggled a lot, so now we can buy our own home and our own land. It’ll be paid for and I don’t have to worry about that no more,” Blackwell said. “So, that’s what I plan to do with some of the money and the other part I plan to help my daughter and to put money up for my two granddaughters for college.”

Blackwell chose the lump sum, which was $415,503 after taxes, instead of 20 yearly payments of $50,000 because she isn’t sure she’ll live that long due to health issues.

First of all: if I’m reading that correctly, this 57-year-old woman and her husband weren’t able to buy a home until they won the lottery.

Second of all: Blackwell chose to take $415,503 post-tax income right now instead of $50,000 for the next 20 years. ($50,000 times 20 is $1 million, so I’m assuming it’s pre-tax income.)

It would take nine years for Blackwell to earn $415,503 in annual $50,000 installments; possibly a decade or more depending on how much is taken out in taxes. If she did die before she completed her annuity payments, however, the lottery would have to pay out the rest of her winnings to a designated heir (or to her estate).

On the one hand this seems like much more of an emotional decision than a rational one; the annuity would earn her family more money long-term, even if Blackwell wasn’t around to benefit from it.

On the other hand: sometimes you can do a lot more with a lump sum than you can with an annual $50,000 paycheck. Blackwell can buy a house. She can help her grandchildren go to college. If she took $50K a year, a lot of her lottery money might go towards groceries and the electric bill. (Which she’s still going to have to pay anyway, and that money will have to come from somewhere.)

So. What would you do, if you won this particular lottery in these particular circumstances? What about if you won the lottery in your own, current circumstances?

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