One billion dollar lottery ?
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Originally Posted By: hattaresguy
Hmm if you won I'd start and evil organization, in an ex Soviet Sub base!
I kind of like that idea. Maybe you could get them to throw in a submarine too. I understand a lot of evil geniuses have them.
Hmm if you won I'd start and evil organization, in an ex Soviet Sub base!
I kind of like that idea. Maybe you could get them to throw in a submarine too. I understand a lot of evil geniuses have them.
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum. Do you really need all the money NOW?? You lose about 4th of the money when you take the lump sum. I think I can survive on the monthly allowance. First thing I will do is pay off my in-laws to never bother me again.
Well, unless if the 20 year payment option (pretty sure it's over 20 years, right?) gets the payment below about $500k, you'll be losing half of anyhow to taxes. Ok, so that's half instead of quarter.
But if you take the hit up front, taking a quarter, then drop that lump sum into a diversified portfolio... if you didn't touch it, I'm guessing in 15 years you'd have doubled your money, thus equaling the 20 year payment. Average S&P, minus 15% capital gains, overall growth of 5-6%? Of course, if you play the market, or maybe sink it into rental units / real estate, maybe you'll double your net worth long before 15 years.
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Pretty sure no amount of money will make relatives go away. If they aren't good with money now, they certainly won't be if they know you're getting a check every (month? quarter? year?), a huge check. Another reason to take it lump sum: those who aren't financially savvy won't realize what you're making in investments, especially if you don't tell them. Just tell 'em you spent it on hookers and blow, and that's why you kept your day job.
But if you take the hit up front, taking a quarter, then drop that lump sum into a diversified portfolio... if you didn't touch it, I'm guessing in 15 years you'd have doubled your money, thus equaling the 20 year payment. Average S&P, minus 15% capital gains, overall growth of 5-6%? Of course, if you play the market, or maybe sink it into rental units / real estate, maybe you'll double your net worth long before 15 years.
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Pretty sure no amount of money will make relatives go away. If they aren't good with money now, they certainly won't be if they know you're getting a check every (month? quarter? year?), a huge check. Another reason to take it lump sum: those who aren't financially savvy won't realize what you're making in investments, especially if you don't tell them. Just tell 'em you spent it on hookers and blow, and that's why you kept your day job.
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
Originally Posted By: dave1251
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
Originally Posted By: Wolf359
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
Agree wholeheartedly.
I don't think that the average Joe can "budget" a lump sum windfall to last them usefully. Burn it all in a short period of time, and then have a major drop in standard of living when the cows come home.
Neighbours over the road had a small lottery win (couple hundred), bought a rundown shack, and "retired", never having to work again.
Within two years lots of cars started stopping out the front, people would leave them running, race in for two minutes or so and drive off.
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
Agree wholeheartedly.
I don't think that the average Joe can "budget" a lump sum windfall to last them usefully. Burn it all in a short period of time, and then have a major drop in standard of living when the cows come home.
Neighbours over the road had a small lottery win (couple hundred), bought a rundown shack, and "retired", never having to work again.
Within two years lots of cars started stopping out the front, people would leave them running, race in for two minutes or so and drive off.
Originally Posted By: Wolf359
Originally Posted By: dave1251
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
You win it first, before you take the lump sum
Also, if multiple winners, it reduces the jackpot. Though, this prize has me wishing I could play.
Originally Posted By: dave1251
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
You take the lump sum because the annuity option at 29 years yields an effective rate of 3-4%. Over the last 40 years, the S&P 500 index has yielded an average return of a little over 10%. Even in the last 10 years with some bad and neutral years, the S&P has yielded an average of a little over 7%. 7% is higher than 3-4% so that's why you always take the lump sum. However if you're not financially savvy, then you take the annuity. I think pretty much everyone has taken the lump sum, only one person took the annuity.
You win it first, before you take the lump sum
Also, if multiple winners, it reduces the jackpot. Though, this prize has me wishing I could play.
Originally Posted By: pbm
Originally Posted By: kschachn
Originally Posted By: SatinSilver
Originally Posted By: gfh77665
This Billion dollars will be won by one of the following:
1) Illegal immigrant,
2) Legal immigrant/refugee, ISIS sympathizer
3) Crackhead/felon
4) Welfare mom with 9 kids (by 7 different men).
Hmmmm, maybe I will buy a ticket since I fall into one of those categories.
j/k, no I don't.
Oh come on, I was having fun trying to figure out which one it was
If a person who has collected 'welfare' for most of their life wins LOTTO...should they be required to pay (the TAXPAYERS) back?? I say YES...
You do realize that if anyone wins this powerball, they're going to pay almost $500 million in taxes, regardless, right?
Originally Posted By: kschachn
Originally Posted By: SatinSilver
Originally Posted By: gfh77665
This Billion dollars will be won by one of the following:
1) Illegal immigrant,
2) Legal immigrant/refugee, ISIS sympathizer
3) Crackhead/felon
4) Welfare mom with 9 kids (by 7 different men).
Hmmmm, maybe I will buy a ticket since I fall into one of those categories.
j/k, no I don't.
Oh come on, I was having fun trying to figure out which one it was
If a person who has collected 'welfare' for most of their life wins LOTTO...should they be required to pay (the TAXPAYERS) back?? I say YES...
You do realize that if anyone wins this powerball, they're going to pay almost $500 million in taxes, regardless, right?
Originally Posted By: DoubleWasp
You do realize that if anyone wins this powerball, they're going to pay almost $500 million in taxes, regardless, right?
Well it's an 806 million jackpot with the lump sum and they only take out 25% federal tax although the tax rate on this would be 39.6% if you don't donate any to charity. So really only about 201 million in taxes plus state taxes. But hey, $100 million here and there and soon you're talking real money. And if a foreigner won, I'm not sure if they'd be subject to federal taxes.
You do realize that if anyone wins this powerball, they're going to pay almost $500 million in taxes, regardless, right?
Well it's an 806 million jackpot with the lump sum and they only take out 25% federal tax although the tax rate on this would be 39.6% if you don't donate any to charity. So really only about 201 million in taxes plus state taxes. But hey, $100 million here and there and soon you're talking real money. And if a foreigner won, I'm not sure if they'd be subject to federal taxes.
Quote:
Powerball - Home
www.powerball.com/
Powerball
Current Estimated Jackpot. $1.3 Billion. $806 Million Cash Value.
Seems they're estimating $494 million in taxes?
One way or another, unless you're name is Elon Musk, the bill for government welfare will have been paid.
Powerball - Home
www.powerball.com/
Powerball
Current Estimated Jackpot. $1.3 Billion. $806 Million Cash Value.
Seems they're estimating $494 million in taxes?
One way or another, unless you're name is Elon Musk, the bill for government welfare will have been paid.
Is the tax estimate based on taking the full 1.3 billion?
If you take the $806 million, wouldn't your federal taxes be about $320 million in round numbers?
I think I could squeak by on just under $500 million for the rest of my days. Probably never touch the principle on a nest egg like that.
If you take the $806 million, wouldn't your federal taxes be about $320 million in round numbers?
I think I could squeak by on just under $500 million for the rest of my days. Probably never touch the principle on a nest egg like that.
Originally Posted By: dave1251
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
What happens if you croak, who get it the rest or do they?
Originally Posted By: Panzerman
I would take the payments too. I cant figure out why everyone takes the lump sum. They only have 8 years to pay you the money. You really take a beating when you take the lump sum.
It is paid over 29 years.
What happens if you croak, who get it the rest or do they?
Originally Posted By: javacontour
Is the tax estimate based on taking the full 1.3 billion?
If you take the $806 million, wouldn't your federal taxes be about $320 million in round numbers?
I think I could squeak by on just under $500 million for the rest of my days. Probably never touch the principle on a nest egg like that.
I took a quick look; looks like 25% is automatically withheld, and you get to pay the difference come tax time. Still on the hook for state tax, and some states do charge a separate tax for lottery winnings (NYC in particular).
http://www.forbes.com/sites/janetnovack/...e-than-in-2012/
Took a bit of work, as I thought NH still had a 10% tax on lottery winnings. Apparently they did away with it: http://taxfoundation.org/blog/does-new-hampshire-tax-lottery-winnings
Is the tax estimate based on taking the full 1.3 billion?
If you take the $806 million, wouldn't your federal taxes be about $320 million in round numbers?
I think I could squeak by on just under $500 million for the rest of my days. Probably never touch the principle on a nest egg like that.
I took a quick look; looks like 25% is automatically withheld, and you get to pay the difference come tax time. Still on the hook for state tax, and some states do charge a separate tax for lottery winnings (NYC in particular).
http://www.forbes.com/sites/janetnovack/...e-than-in-2012/
Took a bit of work, as I thought NH still had a 10% tax on lottery winnings. Apparently they did away with it: http://taxfoundation.org/blog/does-new-hampshire-tax-lottery-winnings
$2
Originally Posted By: madRiver
What happens if you croak, who get it the rest or do they?
Your estate still gets the rest of the money, so whomever is listed in there for that.
Originally Posted By: Vikas
Does the ticket cost $2 or $3? I tried to understand PowerPlay concept but gave up. Is $2 eligible for the billion dollar price or you need to buy $3 ticket to get the full pot?
$2 to play, $3 to get the "bonus" money multiplier on winning combinations other than the jackpot.
I did not even know it was $2. I went and bought $10 in quick picks the other day and only got 5 numbers, I had to ask why.
I need to check those numbers still, and maybe buy another $10 worth.
What happens if you croak, who get it the rest or do they?
Your estate still gets the rest of the money, so whomever is listed in there for that.
Originally Posted By: Vikas
Does the ticket cost $2 or $3? I tried to understand PowerPlay concept but gave up. Is $2 eligible for the billion dollar price or you need to buy $3 ticket to get the full pot?
$2 to play, $3 to get the "bonus" money multiplier on winning combinations other than the jackpot.
I did not even know it was $2. I went and bought $10 in quick picks the other day and only got 5 numbers, I had to ask why.
I need to check those numbers still, and maybe buy another $10 worth.
Spent $10 for Sat's drawing. We matched ONE number. Woohoo!
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