Current Powerball $

TEEJ

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Joined
Jan 12, 2012
Messages
7,489
Location
NJ
Re: $.95 Billion

Lotteries ARE essentially a surcharge on those who are bad at statistics.

They rationalize that they MIGHT win, and, as someone DOES, they think, well, it COULD be me.

Its wishful thinking, and, it rakes in billions of dollars from all the people who thought, well, it COULD be me.



As for what to do with it all, I like the idea of setting of a philanthropic fund.



As for lump vs annuity, I'm thinking the annuity return is conservative, but guaranteed, but a private investment is more aggressive, even a SP500 type mutual fund for example.

The tax rate on the lump sum blasts you upfront. You still owe 10% year on earnings with it. I'm not sure how they tax you on the annuity...I'm sure taxes are taken out annually at least?

If the entire annuity payment is taxed as income every year, would be at the massive 39% federal rate for that high an income, or considered capital gains on investment? Hmmm, income I'm guessing...as YOU didn't invest it.

The 10% would be on the earnings of investments you made with the left over annuity $, OR lump sum $.


I guess it might depend on the state, I know they can be different....some tax money you earned but didn't yet receive, like NY.


So, I suppose the short answer is to take the annuity unless you think you can beat the rate of return by a few percent, in which case, you'd earn more investing the lump sum.

If doing a venture/business/philanthropic organization, I'd probably go annuity as its safer, and if the biz goes bust, you are not screwed and glued.

:D


From what I've read at least, the average winner takes the lump sum, spends like crazy because they cannot fathom a way for it to ever run out, and, then, they they figure that out, and declare bankruptcy, etc.
 

KDM

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Joined
May 31, 2012
Messages
2,010
Location
Tennessee
Re: $40,000,000

Yep the people that beat the odds have already collected their money. Until next time...
 

orbital

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Joined
Feb 8, 2007
Messages
3,015
Location
WI
Re: $$$$$

I like the way the title keeps changing...

+

yep, because the winnings kept going up & up & up... had to change title.
think I have the record on most changed title in CPF history :laughing: {{lol}}

just made it simpler again
 

Chauncey Gardiner

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Mar 12, 2010
Messages
7,784
Location
Pacific N.W.
Re: $$$$$ Lotto $$$$$

+

yep, because the winnings kept going up & up & up... had to change title.
think I have the record on most changed title in CPF history :laughing: {{lol}}

just made it simpler again

What goes around, comes around. orbital, congrats on the record!

~ Chance
 

bykfixer

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Joined
Aug 9, 2015
Messages
14,701
Location
1/2 mile past Yonder
Re: $$$$$

+

yep, because the winnings kept going up & up & up... had to change title.
think I have the record on most changed title in CPF history :laughing: {{lol}}

just made it simpler again

They need to change the billboard in our state....well most of the time they don't but when it got tipped over to a billion+ the sign stayed at 999.

Congrats on the thread title change record...
 

orbital

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Joined
Feb 8, 2007
Messages
3,015
Location
WI
Re: $40,000,000

+

Just one hour south of me, the winning Powerball ticket was sold to one person.

$768,400,000!!!!
The lump sum payout of $477 million

Being so close to me, I really thought of what I'd do in the first 10 minutes of complete/total realization winning that kind of wealth....
staying calm at first, then going simply nuts:eek::sold::twothumbs:hitit::devil:
 

orbital

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Joined
Feb 8, 2007
Messages
3,015
Location
WI
Re: $40,000,000

^

Understanding the immediate need to call your most trusted attorney, Estate Planner & Financial Advisor (whole team),,
setting up a multitude of Trusts ect

With that all understood and in place,,,, then how to best close on Real Estate of ones dreams & so-on & so-on dot, dot, dot, dot, dot



 

bykfixer

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Joined
Aug 9, 2015
Messages
14,701
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1/2 mile past Yonder
Re: $40,000,000

Like we all have attorneys on our speed dial?

At my work folks were discussing the recent one ticket winner. When asked if I'd quit working my response was "yeah, but not here".
"Would you give two weeks notice?, "Yeah, but I'd call in sick everyday"....
- "Would you tell then you won the powerball?" "Pffft, aint no way I could keep that secret".
- "Would you buy a new car?" "Nope I'd buy new tires for my 95 Ranger and strap it to the back of my new mobile home".
- "What would be the first thing you'd buy?" "New work boots." Why?" "Because I will probably be bored in a few months and go back to work on a construction site." "Either that or I'd be broke in a year and need the job". "What? You have 4 hundred million dollars".... "So did Venezuala, and if Venezuala can do it so can I".
 

PartyPete

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Joined
Aug 14, 2015
Messages
486
I live in a small town with a fairly large lottery winner living here a few years back. Word travels fast and I believe in this state you cannot collect winnings anonymously so everyone knew this guy won a nice chunk of change - something like 7 million after taxes.

The guy and his wife were actually clients at my work, so I knew both of them. Both nice people. However, within 12 months he ended up divorced with the ex-wife taking the majority of the money, close to 60 or 70%, I believe.

Both ended up buying extravagant homes, cars etc. Family members they previously had little contact with started coming out of the woodwork and latching on. Both "played rich" for a few years and quickly realized they burned through a huge portion of the money and started selling assets at a loss, taking hits on properties etc.

Within 5 years both are essentially miserable and broke, constantly downgrading their belongings they can't afford and transitioning back to more or less the life they led before winning the lottery. This isn't anything unusual though, I recall watching a documentary on people who won sizable amounts from the lottery and a good portion of them managed to screw it up and felt it ruined their lives.

With that said, the first thing you do would be to find a good lawyer. The second thing you want to do is move far away and carefully assess which part of your family is not going to bleed you dry.
 
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