Mermaidman
Diamond Member
- Sep 4, 2003
- 7,987
- 93
- 91
sixone
Lifer
- May 3, 2004
- 25,030
- 5
- 61
$164 million. Pretax.
And taking the annuity is no way to 'enforce discipline.' There are a lot of companies out there that will loan you money against your future income. If you're the kind of person that will blow thru the payment, then this option will look tempting, at least.
MaxDepth
Diamond Member
- Jun 12, 2001
- 8,757
- 43
- 91
Originally posted by: RossMAN
Rats. I thought you would have had it. I mean if the chances are 1 in 148 million, you would have collected half that ticket plus all those near misses. But...looking at that you would have only come out ahead by like 10 million. I guess that's only a lukewarm deal.
EIDT:
My short list of things that I would have done with the money:
1) Buy three house: one at the beach (NC or SC); one in Park City, Utah; and my parents house
2) Buy a minor league baseball franchise (like the Durham Bulls)
3) Build a trust/investment fund that would allow all my nieces, nephews, extended family that can claim me as a relative to have college paid for (even through doctoral), 20% down payment on a house (within reason), mediacl/dental insurance
4) Create a cooking school in NC that would rival the CIA
Originally posted by: conehead433
Originally posted by: AdamSnow
I would like to know as well... to me - getting 7.8m of 30 years sounds like a better deal... at least then if you cant control yourself you know that you have 30 years to party...
The problem with the annuity is that most of the lotteries don't allow for anyone in your family to inherit or continue to receive the yearly payment if you die. You can do far better than the 7.8 million per year investing properly if you opt to take the lump sum payment.
Understand completely now... Yes, investing 100m for a few years would give you much better return than 7.8m /year
moshquerade
No Lifer
- Nov 1, 2001
- 61,504
- 12
- 56
Winning the lottery could ruin your life. Friends, relatives, everyone and their brother wanting your money. Time to move to Austrailia.
DrPizza
Administrator Elite Member Goat Whisperer
BrokenVisage
Lifer
- Jan 29, 2005
- 24,771
- 14
- 81
Mermaidman
Diamond Member
- Sep 4, 2003
- 7,987
- 93
- 91
110 Million Lump sum attracts too much attention. If I win that amount of money, I probably only keep around 10 million enough to secure a comfortable lifestyle and the rest I would donate it.
DainBramaged
Lifer
- Jun 19, 2003
- 23,454
- 41
- 91
While I'm sure things would have the potential to change as soon as I got my hands on the money, I'd take the lump sum and invest it. You would get a lot better returns than 7.8 mill per year.
dullard
Elite Member
- May 21, 2001
- 25,940
- 4,529
- 126
Yep, $164.4 million pretax. With 35% federal tax and 9% Oregon tax, that is $92 million post tax.
With the annuity isn't it ~$340 million/30 = ~$11.3 million a year for 29 years (~$22.6 million the first year)? Pretax ($6.3 million and $12.7 million post tax if tax rates remain the same).
You are correct that it is theoretically probable to do better with the lump sum, and you are correct that it is possible to borrow against the future income. However, years of history have shown us that taking the lump sum OFTEN leads to bankruptcy or worse. Past winners were killed for their money, bankrupt, are driving taxis for a living, have family members kidnapped/killed, bombarded with beggers of all forms, arrested, etc. When you don't have the money yet (annuity), history has shown that those side issues are drastically reduced. For purely financial reasons, take the lump sum. For practical reasons you are often an idiot to take the lump sum.
which is why i wish identity would be left out of it... heh. I don't need people knowing how much money i have. but if i did win, i'd probably divide it up so all my close friends and family get say 5 mil.. and the rest i'd have to find a worthy charity that would actually make good use of the money.
GuitarDaddy
Lifer
- Nov 9, 2004
- 11,465
- 1
- 0
It's pretty simple really, take the $92mm lump sum after taxes, invest it in tax free munnies at 5%. Then party your a$$ off on 4.6mm a year in non-taxable income for life and never touch the $92mm
It's wiser to take the lump sum. Imagine if you will, that you take the yearly payout, and die the first year. Luckily you filled out a will and you brothers, sisters, mom and dad whatever, are now inheritors of your potentially vast estate. But wait. They have to pay the estate tax. And guess what, they owe the WHOLE amount on the 340 million. Thats right, the whole amount. Guess what, your inheritors are now bankrupt, and the government will take the lottery winnings every year until the taxes are paid off.
Good job, you just ****** over everyone you care about.
Also, by taking the lump sum and investing the majority of it, even in fairly conservative ways, will over 30 years grow faster than the yearly payout would be.
Edit: I admit I can be wrong on the estate tax, that's just what someone in the office here said. I could google the answer, but I prefer to give someone else the opportunity to call me a dumbass.
Has the winner already been chosen? :shocked: I bought a fvcking ticket! WHERE THE FVCK IS MY TICKET!!
I live in Medford Oregon, right next to Jacksonville were the winning ticket was sold. Not to start any rumors but word is the winner may be the same guy that won the state lotto in 2001 for $8.75 mil. Not confirmed. But that is the word going around town.
dainthomas
Lifer
- Dec 7, 2004
- 14,909
- 3,889
- 136
That's the number one rule when winning the lottery. Set up some kind of anonymous LLP, and have your lawyer go down and claim it. Those morons with the big cardboard checks on TV are just begging to have their lives ruined by all the mooching lowlifes that will crawl out of the woodwork.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 21K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
-
Facebook
Twitter