I saw an electronic billboard in Atlanta that has the current Mega Millions and Powerball payout amounts, they were respectively 15 and 999. Clearly they didn't expect it to go over a billion.
They are estimating 1.2 Billion for Wed. drawing, I don't need 1.2 billion so I am going to fund this forum for the rest of eternity. And after that I think I might go to Disney World! or fishing?
The real problem is that people think that if they have a lot of money they won't have to manage money as carefully and they can do what they want with it.
Fact is, even if you have *just* a few million dollars of your own, you picked up a new occupation: Money manager. To some degree, the money owns you.
Many of the well known financial failures of lottery winners are due to ignorance of, or rebellion against this fact.
The present value of the annuity is less than the lump sum.
The annuity stream is also a subordinate obligation of the issuer.
Arnyk, i do not really understand what the problem is. If you win and after taxes get $500 million and put it in your savings account and do not even buy treasury bills. You spend 500K the first year buying everything you want and give a few million or so away to friends and relatives lets say you have $495 million left. Then live extravagantly and spend $200K a year after that, you could live for almost 2500 years.
Once you start giving away over $5.45mm you, the donor, pay gift taxes.
Once you go over $50mm, you become betrothed to a $700/hr lawyer and high priced accountant.
These are termed "high class problems".
One good reason to do that is that if you don't, and you die before the payout is complete, your heirs and assigns will be asked to pay any tax due on the entire remaining amount at the time of your death. Since they would be getting only the yearly lottery payments, they would have do business with one of those predatory "structured settlement" firms (you've probably seen their ads on TV) to bail them out.
It's my money and I want complete control of it. No leashes for me.
Also, too many things can change in society/government over the decades of annuity payouts. I don't trust any government over those timeframes to honor their commitments
Survival is my highest present 'discounted' value, Mr Walton.
Marrying at least four times has a 3-4 times higher divorce rate than the national average.
Which leaves 1/16th of a ~1/3d lump sum, and that doesn't even take care of the (die, you stupid fck) lawyer bill.
Multiple-divorce and multiple-million appear to be Dee Fact-O in the US, afaict.
(Why waste perfectly good money on lottery tickets, if one can afford not to pay taxes at all. This ad is Sponsored by George Town CI
)
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Ah, thanks for the straight dope. We're at least getting close to parity on opportunity cost now. 😉 Although that ignores smaller winnings, which would tip the probability that you end up ahead of your $2 quite a bit higher.
Regardless, yes, it does get back to doing it for the fun thought experiment. $2 to have some fun, albeit wildly unrealistic, dreams isn't too bad a deal.
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You don't have to have a financial person. But at the very least you want an utterly superb lawyer. There's too much risk with endless lawsuits (that I don't think should be legal). And it's hard to deal with it all. You won't be enjoying much of the earnings if you don't put some kind of shield around yourself. At some point you'll be using a financial person briefly as you set things up.
Read the this, damnit.
Read the this, damnit.
I believe the link deserves a movie with true Holywood actors ! It will make a good movie imho !
Imagine you are married, you know wife has an other man but let do as you have an other woman yourself... and you winn the Lotery... Pffff, problems beginn !
You can buy a shoes factory to let the wife occupied but what to do with her boyfriend.... ?😀 Not cool !
Imagine you are married, you know wife has an other man but let do as you have an other woman yourself... and you winn the Lotery... Pffff, problems beginn !
You can buy a shoes factory to let the wife occupied but what to do with her boyfriend.... ?😀 Not cool !
A more complete story might be found here:
How much cash $1.3 billion Powerball winner takes home - Tech Insider
Bottom line: individual top initial payout of $806 million (if they take the lump-sum) before taxes. The federal tax actually winds up being 39.5% for lottery winners, and there are varying state taxes (up ot about 9%) on top of that. Bottom line, half the individual payout can go to the taxman. So, we're talking about ca. $400 million after taxes.
The jackpot of $1.3 billion is the jackpot that all winners get put together,
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$400 million after taxes, it's not worth it. After you buy candy and light bulbs what do you have left. $399,999,980.00. And do not forget the gas money to pick it up.
This site did a good job of explaining gift tax.
Gift Tax: Do I have to pay gift tax when someone gives me money? - TaxAct Blog
Gift Tax: Do I have to pay gift tax when someone gives me money? - TaxAct Blog
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