Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Why do lottery winning give most to charity, is that just to keep the beggars off the door, why even win if your going give it away, I'm keeping every penny
What if you croak?
Your heirs don't get the rest.
Or what if your state goes broke like Illinois and has no money to pay you?
Like the commercial says ... It's my money and I want it now!
1. In the long run, we're all dead, is no "if."
2. Your heirs do get the remains of the annuity. You can set up a trust or a will.
3. The State does not have the money. The Multi-State Lottery Association negotiates an annuity with banks.
4. Taking the cash settlement cuts down on the amount of money you get. The time value of money is complicated. That's why you need advice. Up until 50 years old I would have taken the annuity which in this case would start at $8,000,000 or so and increase by 5% each year. Now, at 74, I'd grab the cash because at my age I couldn't care less how much I earn, I want to party like it's 1999.
A down side of the cash option is now you have a new job - financial manager of a $250,000,000 portfolio, a job that will give you fits and which you know nothing about. A professional can help, but they want 1% at least to manage it ($2,500,000 per year). That means they have to beat the market gain each year by 1%, difficult at best, unlikely at worst. I'd stick it in municipals and G7 bonds and let it go on its own.
Take the annuity. JJ Wentworth would be happy if you assigned a couple of years to them in return for "cash now." Assign them the last 10 years of the annuity payments of perhaps $250,000,000 and they will give you a tax free lump sum payment of $50,000,000, maybe. Don't spend it all in one place.
"Yeah, give it to me now!"
The $121.1 million is the 25% Federal withholding tax - she will most likely be paying the highest tax rate. As a single filer, that will be $121,505 + $189.9 million (39.6% of the amount over $418,400) for total of just over $190 million.<>I really hope she is able to handle what she now has.
Plus 3.8 % for ACA tax. That all gets figured out at the end of the tax year. Then she will have to do quarterly estimates of income tax thereafter.
<>And her "final tax burden" will be much higher. Can anyone explain the final tax burden?
First is the 3.8% ACA healthcare tax. Then she will have deductible expenses and additional income to report. All the money has to be accounted for in the end. She can declare certain expenses of receiving income, plus she should get some interest on the money she actually gets for the rest of the year. Plus does income averaging still come in to play? You used to be able to average your income out over the last 5 years.
I would never put any significant cash or precious metals in a bank safety deposit box. Never.<>
The absolutely worst thing that could happen to you if you win that kind of money --- is to have it but not actually know how to fully control it.
Interesting info on the safety of the box.
With the last point, a lot of entertainers and athletes come to mind as that group of people. Many have been cleaned out by a person they trust.
Insurance of deposits doesn't help much given the limits on account amount. I'm sure you'd need thousands of bank accounts to get any safety from FDIC.
Um she's an odd lady. I'll be interested to see where this story takes her. Here in South Caorlina we can refuse to have our name published. I would be there to pick up the check first thing and I wouldn't tell a soul....well maybe my husband.
I think she got the check already.
I look forward to learning more, too. Her problem in quitting is she will not get any money for several weeks at least, maybe months. The MUSL has to collect from all the states, add up the amount, then set up the EFT for the money to go to her. The check you see on TV is just a poster. There is no actual check, it's all done electronically. I would love to learn the details.
Yeah, had I found myself in her shoes, I would have created a trust (or a LLC, or whatever I deemed to be the best option after gathering all of the facts re that particular situation), and remained anonymous. I have a living trust that I created, but my name is part of the name of the trust, so I'd have to create another trust.
Yes, me too. Would you have your original trust be a beneficiary of the new trust or would you be a beneficiary/trustee of the new trust and let the old one fade away??
Interesting info on the safety of the box.
With the last point, a lot of entertainers and athletes come to mind as that group of people. Many have been cleaned out by a person they trust.
Insurance of deposits doesn't help much given the limits on account amount. I'm sure you'd need thousands of bank accounts to get any safety from FDIC.
The single best thing you can do throughout life is to learn each and evey day to become less dependent on other people. And that includes professionals too.
Professionals generate their income through fees.....and they can fee/bill you to death for everything if they are greedy and you make yourself an easy mark or pushover.
Many of the mega banks now have a policies that do not allow you to store large sums of cash and gold in their safe deposit boxes.
I would only store sentimental family heirlooms and documents like Trust deeds at the bank.
And with that much cash the FDIC is very tricky and ambigous. If one of the mega banks like Wells Fargo were to go down in the future, the FDIC might become insolvement affer it paid off all the depositers.
Stupid people are going to do stupid things, you can't stop them....I don't care.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
