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Old 11-17-2016, 11:48 AM
 
Location: Charleston, SC
1,362 posts, read 768,046 times
Reputation: 2428

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Just to take a break from all the "Demise of Social Security" threads -- I've got a real good feeling about the PowerBall Tickets I bought at lunch today. The Top Prize is $320 Million -- Cash Option would be about half that.

Just supposing you won a large sum of money, I'm talking multiple millions WOO-HOO !! What would be the proper claiming strategy ??

I think the Annuity Payout is stretched out over 30 years, is the Cash Option always the better choice ??

Do you set up a Trust or an LLC or something ??

How do you minimize the Taxes ?? Is the 5-year Income Averaging thing available ??


Ah, such stuff as dreams are made on......
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Old 11-17-2016, 02:09 PM
 
119 posts, read 105,424 times
Reputation: 335
My chances of living for another 30 years are slim to none.

I would take the cash all at once.

Then lose it all and use the loss to offset future income and pay no income tax for the rest of my life.
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Old 11-17-2016, 02:12 PM
 
Location: Pennsylvania
16,357 posts, read 10,346,234 times
Reputation: 28522
not going to live another 30 yrs either so would also take the lump sum.


at 320 million, they could take all the taxes they want. I'd still be left with more than I have now.
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Old 11-17-2016, 02:35 PM
 
Location: Seattle/Dahlonega
547 posts, read 388,606 times
Reputation: 1553
Cash.
The insurance company issuing the annuity always rips you off.
sarcasm off
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Old 11-17-2016, 04:06 PM
 
Location: Las Vegas
13,890 posts, read 25,335,938 times
Reputation: 26388
Lump sum is a no brainer because I'm old. And half of that 230M would be just fine with me. I could live on that for the rest of my life as well as any millionaire. I figure it would be about 60M after taxes.
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Old 11-17-2016, 04:32 PM
 
4,315 posts, read 2,526,154 times
Reputation: 7686
There is an internet site..........Powerball Jackpot Analysis......that gives the exact state by state payouts before every drawing . ( after federal and state income taxes are with held )

For example.........my state of Arkansas I would receive $137,600,000 lump sum option ......AFTER state and federal, taxes were with held.

Your state might be a little more or a little less based on your state's income tax rate.
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Old 11-17-2016, 05:04 PM
 
Location: Charleston, SC
1,362 posts, read 768,046 times
Reputation: 2428
Hey, that is an interesting website. I see South Carolina takes a 7% bite out of my winnings !! I may have to give the ticket to my Dear Daughter to claim....she lives in Florida -- No State Tax on Lottery Winnings. This may be when setting up a Trust to claim the winnings in a Tax-Free State would pay off..

She might even benefit from the Annuity payout. At her age, she could collect for 30 years.

Last edited by FiveLoaves; 11-17-2016 at 05:17 PM..
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Old 11-17-2016, 05:31 PM
 
Location: Central Massachusetts
4,800 posts, read 4,850,322 times
Reputation: 6379
Funny we would take second place and not even worry a bit. Taking the lump sum payout of the one million dollar second prize is more than enough for us. Yes I know it would end up being about 400 to 500k but that would just make it perfect for us. We don't ask for much.
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Old 11-17-2016, 06:24 PM
 
2,691 posts, read 1,627,924 times
Reputation: 5501
The cash value is currently $202 million. By winning, you'd be in the top tier tax bracket for that year, which is currently 39.6% So you'd end up getting 60.4% of it, assuming you live in a state with no state income taxes, or about $122 million.

For that much money I would buy several nice homes around the world, nice cars, take some amazing vacations, and I'd probably spend about $22 million of it and keep the rest invested for the rest of my life to pass on to my children.
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Old 11-17-2016, 07:02 PM
 
Location: East Side of ATL
4,369 posts, read 6,039,933 times
Reputation: 1952
About $111 million here. setup a trust. Take 10% to live off for now and let the rest get interest.
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