What type of bank account are lottery winnings put in?

Discussion in 'Off Topic' started by Trey22, Aug 29, 2004.

  1. Trey22

    Trey22 Diamond Member

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    Usually standard bank checking/savings accounts are FDIC insured up to a certain amount, i.e., $100,000.

    So if my friend won the lottery and gave me $1,000,000, where would I put it?

     
  2. Anubis

    Anubis No Lifer

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    saveings?
     
  3. TechnoKid

    TechnoKid Diamond Member

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    you'd open 10 accounts for 100,000 each.
     
  4. myusername

    myusername Diamond Member

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    The footlocker in my closet :)
     
  5. Anubis

    Anubis No Lifer

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    put it in a bank over sees like in the caymans or holland
     
  6. jadinolf

    jadinolf Lifer

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    you'd open 10 accounts for 100,000 each.

    Yep.
     
  7. Spikesoldier

    Spikesoldier Diamond Member

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    take it all and invest in real estate.
     
  8. JEDI

    JEDI Lifer

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    dump it all into worldcom and enron. double your $ in no time

    thats how thr rich get richer
     
  9. Peetoeng

    Peetoeng Golden Member

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    Look for a brokerage accounts who offer high insurance coverage provided by large insurance company such as the Llyoids of London.
     
  10. Peetoeng

    Peetoeng Golden Member

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    But each account has to be in different bank institution (not just bank branch).
     
  11. orakle

    orakle Golden Member

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    I'd put the money overseas. No sense in letting the IRS/CRA (canada revenue agency) know you're a millionaire and taxing you through the nose. I'd keep some here in cash though, for those impulse buys (houses, cars, boats..). The problem arises when you need to bring the money back into the country... i believe customs regulations in the US state that you can only be carrying $10K usd without having to declare it.
     
  12. sixone

    sixone Lifer

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    True.
     
  13. sixone

    sixone Lifer

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    The tax will almost surely be taken out before you receive a payment. In the US, anyway.
     
  14. Kelvrick

    Kelvrick Lifer

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    Why don't you just wire the money in when you need more of it.
     
  15. silverpig

    silverpig Lifer

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    Lottery winnings are tax free in Canada, but you do of course have to pay tax on the interest you make.
     
  16. RagingBITCH

    RagingBITCH Lifer

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    CDARS (Certificate of Deposit Account Registry Service) lets you deposit up to $5 million at a single bank and have it all covered under FDIC. It's the "easy" way around the $100,000 FDIC limit. I don't know the rules of CDARS well enough, but generally speaking it says the deposit can have a max. of $5 million at a single bank, so it could be possible to have X number of CDARS deposits at different banks. (I could be wrong)
     
  17. TechnoKid

    TechnoKid Diamond Member

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    hmmmm....could you buy 1 millionns worth of bonds? and then just put those into a safedeposit box?
     
  18. RagingBITCH

    RagingBITCH Lifer

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    Safe deposit boxes aren't covered under the FDIC or personal insurance. It's under "lock and key" in a safe, but fire, flood, theft, and other happenings would leave you with nothing.
     
  19. spanky

    spanky Lifer

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    i'll hold it for u in my underwear.
     
  20. MichaelD

    MichaelD Lifer

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    A really big bank account. I hope to have one, someday. :wine:
     
  21. KLin

    KLin Lifer

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    both state income(if state has an income tax) and fed income taxes are taken out of lotto winnings. uncle sam always has to have his share.
     
  22. everman

    everman Lifer

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    Just use multiple accounts in different banks. Your main bank should be able to take care of it for you, it's not like you need to travel to 10 different places yourself. And you can't avoid taxes on it by simply putting it all overseas, lol.
     
  23. dionx

    dionx Diamond Member

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    i'd get 11 or more accounts. that way, the interest gained is also FDIC insured.
     
  24. RagingBITCH

    RagingBITCH Lifer

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    I already mentioned CDARS :p That's the only logical way of doing so.