PowerBall Lottery and Winning the Big One (financial advisor, inheritance, years)
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why buy a ticket if you aren't going to en joy the HUGE winnings?
Being soooooooooo worried that someone might find out would be a good enough reason not to pl,ay.
I'd definitely enjoy it! Probably more than the people who spend spend spend and wind up broke 5 years down the road. Although, I saw an interview with an old guy who blew through his and was now poor in his old age, and he said he really enjoyed the journey. Different strokes, I guess.
Taxes can be a problem if you die before collecting the 30 payments. IRS looks at the annuity as cash on hand (lets say it was 300 million/30 years is 10mm a year). You died with 7 payments left, IRS values your estate at 70 million (that you haven't collected) so you owe 40% in estate tax (28 million) but wait you haven't collected a penny of those last 7 payments!
Now you have to sell the annuity to an investor for pennies on the dollar and pay the 28 million next April 15th. Lose-lose for the heirs.
If you're dead, you don't have to sell anything. Actually can't sell anything.You're dead.
Taxes can be a problem if you die before collecting the 30 payments. IRS looks at the annuity as cash on hand (lets say it was 300 million/30 years is 10mm a year). You died with 7 payments left, IRS values your estate at 70 million (that you haven't collected) so you owe 40% in estate tax (28 million) but wait you haven't collected a penny of those last 7 payments!
Now you have to sell the annuity to an investor for pennies on the dollar and pay the 28 million next April 15th. Lose-lose for the heirs.
I thought this was changed not too long ago? IIRC now you (or your heirs) only pay taxes on the portion of the annuity that is paid each year.
Don't worry... Thousands of attorneys and investment advisers will be chasing you
Exactly. How do you separate the competent, ethical professionals from the "ambulance chasers"? One can educate oneself about what to look for in an investment professional, but learning what questions to ask doesn't matter if the answers are all lies.
Thanks for replying. Now I have a good topic to research!
I know I am in the minority about wanting the name and town of winners made public.
I believe if those are the rules in the state you bought the winning ticket, you should have considered that before buying.
I also believe if every state allows anonymity the lottery would soon die off. The lure of buying a ticket is imagining us being in the shoes of the winners.
Checking the results and finding out there was a big winner but no name, no description, no town ............takes the excitement away and thus the free publicity that keeps lottery tickets sold.
I occasionally buy a charitable raffle ticket from a local organization that gives away a new car.
If they stated they would no longer reveal the identity of the new car winner I would......
#1...........be suspicious that it might be rigged
#2...........decide to quit buying a ticket and donate that raffle ticket money elsewhere.
Making public the name and town of a Power Ball winner adds authenticity to the entire lottery system.
I think of it as entertainment. If you spent $10 on a movie, all you get is memories of a movie.
$1 on a lottery ticket lets you dream. You know you're probably not going to win, but someone is and well, ya know wouldn't it be nice………
$1 for the adventure of a fantasy beats a movie and salty popcorn IMHO.
You do not have to play it. So please do not call people who play the lottery stupid. There are people who can afford it and know the costs associated. We also know that the states use the lottery money for day to day operations. Schools and cities and towns benefit from the income generated. Otherwise your taxes would go up even more substantially.
Quote:
Originally Posted by PAhippo
I think of it as entertainment. If you spent $10 on a movie, all you get is memories of a movie.
$1 on a lottery ticket lets you dream. You know you're probably not going to win, but someone is and well, ya know wouldn't it be nice………
$1 for the adventure of a fantasy beats a movie and salty popcorn IMHO.
different strokes as they say.
I completely agree. I have this rule. It will never take over my life. I will not spend money that is needed to put food on the table. If I win great. If I lose oh well. As I said above in this post. The money is going to needed services that would come at a higher cost to me.
There are a lot of Stupid Taxes, Larry. Don't think you're so smart that you haven't been paying them.
There's the Tax on your Phone Bill that was supposed to fund a 911 system for Cell Phones...
"For more than a decade, every person in New Jersey with a phone has paid a tax on their monthly bill to make it happen, handing over a whopping $1.37 billion" Yet, no 911 system exists.
Or how about the Gasoline Tax that's supposed to be used for fixing Roads ??
You pay tolls to use the Bridges that were built and paid for decades ago, don't you Larry ??
I could go on, but I won't.
I spend $10 a week on Lottery Tickets. OMG -- that's $500 a year, not accounting for the couple of small winning tix I cash in every now and then. Gee, that's about 0.78% of my annual budget....what am I going to do about the Stupid Waste of Money ?
I know, I'll buy one less ticket every week. There, I slashed the Waste by 50% WOO-HOO !!
You go play in your Sandbox, dude. Let us play here.
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