# The Blackjack Strategy Can Also Be Used to Invest in Annuities

I’ve been known to wager on occasion, and when I used to frequent casinos, blackjack was by far my favorite game for a good portion of the time. For those of you who are unfamiliar with blackjack, the goal is to get as close to 21 as possible without going over or “busting.” In other words, the game is commonly known as “21.” The key to success in blackjack, however, is not to focus on reaching 21 at any point; rather, the goal is to win.

## Its inner workings

The decimal system, which ranges from 0 to 9, is the most common form of numerals, and other well-known ones are binary, which ranges from 0 to 1, and, more recently, hexadecimal (hex), which ranges from 0 to F. A deck of cards is a numeral system that has been replicated. Things like this will make more sense once you’ve mastered the hexadecimal system. The diagram below depicts how these things interact with one another:

In my experience, looking at the number 17 is the most effective way to explain how to convert between decimal and hexadecimal. Because hex is based on the number 16, the value 17 is represented in decimal as 11: 1×16 plus 1×1 equals 17, so 17 in decimal corresponds to 11 in hex. Because 1×16 and 8×1 equal 24, 24 in decimal equals 18 in hex.

A deck of cards employs the Base 13 numbering system, and the letters A through C are represented by the card names Queen, King, and Ace, respectively. Our counting systems begin at zero and do not have ten, but cards do not begin at zero and do have ten, so Jack is a 9, and tens are eights. I realize this is a little awkward, but the fact remains that our counting systems begin with zero and do not have ten, whereas cards do not begin with zero and do have ten… As a result, you’ll have to use your imagination a little bit here.

As a result, a true addition of a Jack and a King would result in a B13 addition of 9(b13) and B(b13), yielding a decimal value of 20 (9+11). The foundation of card counting is an understanding of this concept. A deck contains only a certain number of cards, and those cards can only represent a certain number of different values (4 suits) Knowing how to manipulate this information allows you to determine whether a deck is heavy (consisting of high numbers) or light (consisting of low numbers), which can completely change the odds depending on the rules of the game.

## Complete Deck

When counting cards, the average weight of a full deck is six, implying that a card’s value is eight. Because accurately keeping track of numbers is difficult for people who aren’t Rain Man, the majority of counting systems are oversimplified, and a wide variety of counting methods are built around this concept. The other piece of the puzzle that goes into successfully counting something is knowing when you have reached critical mass and when the weighted average of the pack has enough substance. If we determined that we were about halfway through the deck, a geometrically neutral example would be to remove the Diamonds and Spades cards, leaving us with 26 cards that had the same weighting as the entire deck.

## Half Deck has no geometric significance

On the other hand, if the cards were dealt in a random order, it would be possible to see how this would affect the deck’s balance.

If you were using a single deck of 52 cards and the first card dealt to you was the King of Hearts, you would know that the pack was “lighter” than if the first card dealt to you was the 2 of Hearts. On the other hand, this would have little impact on the weighted average. If you could count out 26 cards from one-half of the deck, the following randomness would emerge:

• 2 hearts, 2 spades, and 2 diamonds Three hearts, three spades, three diamonds, and three clubs 2 diamonds, 3 clubs, 3 hearts, 3 spades, and 3 diamonds
• 4 of spades, 4 of diamonds, 4 of clubs, 5 of hearts, 5 of spades, 5 of diamonds, 6 of hearts, 6 of spades, 6 of diamonds, 6 of clubs, 7 of spades, 7 of diamonds, 7 of clubs, 8 of spades, 8 of diamonds, 8 of clubs, 9 of spades, 9 of diamonds, 9 of clubs, 10 of spades, 9 of diamonds, 9 of clubs, 11 of spades, 9 of diamonds, 9
• 8 of spades, 8 of hearts, 8 of diamonds 9 of diamonds, 9 of hearts, 9 of spades, 10 of diamonds, 10 of clubs

## The heavy half deck will greatly benefit the player

You’re dealing with a hefty deck. There are still a few low-value cards in the deck if the game is played correctly, but 20 of the remaining 26 cards have a face value of 10 or Ace, making this a deck heavily stacked in favor of the player. And as the game progressed, the randomness of the deck would become less prevalent, resulting in even greater accuracy. Casinos typically use the Cut Card to reduce the overall impact of counting.

## Blackjack Dealer Regulations

Casinos have chosen to implement a very simple structure for the game to manage it professionally. They must draw a total of 16 and stand on 17 or higher (some will hit soft 17, and this information will be printed on the cloth). This has nothing to do with the actions of the players. As a result, if all of the players have been dealt 20 and the dealer turns over 18, all of the players will concede defeat and receive their payout, even though there is no disadvantage to “hitting” and taking another card and possibly getting a 3 to win the game and take home the pot.

Because a lot of smaller cards equals a lot of sneaky ways for the dealer to hit (as they must) hands of 16 or less and get a total under 21 without busting, the game’s rigidity is why the ‘heavy’ deck favors the player. The rigidity of the deck is what makes it advantageous to the player. When the deck contains a lot of 10s, the player has a good chance of getting a natural two-card 20. They also have a good chance of getting a blackjack (10 and Ace) and of sitting tight and hoping that the dealer will bust out when they show a drawing hand.

## Blackjack is the best casino game for the player to play

There are numerous variations of blackjack, and the house edge is as low as 0.28 percent at its best. Blackjack is the best bet in a casino (aside from a high odds crap table at full bet), and it is almost even money. To be completely honest, you might be wondering how the house makes any money at all.

As a player, you are not bound by any drawing rules; you have the option of hitting 20 or remaining on 4; the decision is entirely up to you. The more irrational your choice, the better for the house. As a result, because there aren’t many people who know how to play blackjack properly, the house edge rises. This also means that you can, if you want, imitate the dealer’s drawing rules by continuously drawing up to 16 and standing on 17 or higher. Isn’t it unthinkable that the casino would choose anything other than the best strategy?

It’s an intriguing fact, but if you use the ‘Dealer Strategy,’ you’ll lose more money. This is because the Dealer drawing rules are not the best strategy for the game as a whole; rather, they are the best strategy under given blind conditions, which are determined by forecasting and table position. A more complicated “if, then, else” structure is the best approach for a player to take:

## Dealer: If the total number of hits is 17, stand

Player: The player may hit if the dealer’s card is less than four and his or her total is less than thirteen. The player may hit if the dealer’s card is higher than five and his or her total is less than twelve. The best strategy for a player correlates the dealer total with the player total because the dealer has taken a predefined position’ in which they will draw to a rule. This is due to the dealer drawing to a rule. As a result, if the dealer shows a 5, we know that they must draw, and we also know that drawing could mean that they “bust,” so the player shouldn’t draw above 12 because of the risk of catching a 10 and busting is greater than the risk of the dealer not busting. If the player does not draw a number greater than 12, he or she has a better chance of winning the hand.

## What is the location of the front lines?

You’d think that because the player can react in real-time, they’d have an advantage, but you’d be wrong. This, of course, is the essence of the house advantage, and it’s also where blackjack and annuities intersect. Whoever dies first is the rule. When playing blackjack, the player always goes first, which contributes significantly to the house advantage. If a player “busts,” the dealer wins regardless of whether he needs to draw to 17. That is the edge of the cliff. The same holds when considering an annuity.

## Annuities Described

An annuity is a type of insurance policy that requires a large one-time payment to begin receiving payments for the rest of the policyholder’s natural life. These payments can be either fixed or variable. Some variations pay the holder first, then the surviving spouse, but the concept remains the same. The only difference is that these variants have a longer average time horizon, so they pay you less annually than a comparable single annuity.

An easy-to-understand easy-to-understand example would be if you contributed \$300,000 to an annuity program offered by your employer over 30 years. It will be invested during this time to prepare it for future allocation to mutual funds. Assume that, as a result of market appreciation, it is now worth \$500,000, and you have reached the age of 65 and are ready to retire. At the age of 65, half a million dollars is transferred from the funds in which you have previously invested and “purchase” this annuity plan. The plan guarantees a 7.1 percent return for the rest of the participant’s life. The amount required to make the minimum monthly payment is \$2957, as shown. However, as with blackjack, you run the risk of going “bust” first.