I'd give over half of it away tbh. You can live off of interest of $200 mil for more than 4 generations. I'd have a lot of **** named after me in this city lol.
As an example, your two options for this lottery are: $1.6B spread over 30 years $904MM cash option So clearly they include an interest rate in there so the $904 million now becomes $1.6B if spread over time. I'm too lazy to do the math on what that rate is, but I assume it's based on a 30-yr treasury or something of the sort (no reason for the lotto to take on any risk). Also, for smaller lottery winnings (like $2MM!), there's a huge tax advantage to taking smaller annual payments and being in a lower tax bracket.
Estimated Jackpot Value: (Based on 0% state income tax) Lump Sum Option One-Time Payout (after Taxes): $690,000,000 Annuity Option (30 graduated payments made annually over 29 years) Total Payout (after Taxes): $1,200,000,000 Example Payments Initial (1st) Payment (after Taxes):$18,061,722 10th Payment (after Taxes):$28,019,655 20th Payment (after Taxes):$45,641,077 Final (30th) Payment (after Taxes):$74,344,500
Avoiding tax implication is a huge price to pay considering the return you could make over 30 years vs the inflation loss over 30 years. Discipline is the key, naturally.
Certainly true for someone with financial knowledge or the sense to get a financial advisor, etc. But a ton of lottery winners don't do that and the lump sum protects them from themselves. I think the lump sum option is based on something around a 4% interest rate, so it's not a bad investment option. It's better than taking a lump sum and putting it all in 30-year treasuries (3.4%). When you have a billion dollars, there's no need to take excess risk if you're just trying to live an easy life (instead of building a business, maximizing money, etc). But when accounting for taxes in smaller lottery winnings, the difference is magnified quite a bit depending on your other income and tax brackets. You could make the equivalent of an 8-10% no-risk annual return by taking the annual payments - it would be the equivalent of investing in the stock market but with no risk of losses.
Take the lump sum, move to a country that cares about it's citizens like Canada - and set up shop. DD
say if you win a bilion dollar, can you tell the lotto commission you just want ... say 50 mil instead? And tell 'em keep the rest or do whatever they want with it?
The Tax bracket on 900 Million is bigger than 90 million I always thought after a million . . it was all the same So what are the risk of taking the pay out over 30 years? If I die . . . .my family does not get the money? They have the ability to actually 'run out of money'? Its not guaranteed? I take 900 Million dollars Find a financial Advisor . . . . .'A trustworthy one' . . .. one that won't cut so deep into your earnings that you might as well took the lump sum Honestly. . . I think I might 2 financial Advisors . . who don't know each other to check each other . . and keep it that way Get a LAwyer and maybe 2 Accountants too Rocket River
No - in the case of a large lottery, it will be the same. But if you win $2MM and spread it over 30 years, that's $66,000 per year and could keep you in a lower bracket. The risk is someone is an idiot and blows all their money because they don't know how to manage those kinds of numbers or the pressures from friends/family/etc that come with it (or scammers, etc). It seems ridiculous, but apparently 70% of lottery winners eventually declare bankruptcy. If you're smart with your money and/or hire the right advisors/etc, you should end up with more money if you take the lump sum. But it doesn't work out for people as well as it theoretically should. Some fun stats: https://brandongaille.com/22-lottery-winners-bankrupt-statistics/
The biggest risk of taking the 30 year annuity is taxes. Taxes are at pretty historic lows. The odds are that over the next 30 years, you'll average a higher tax rate than you have right now. 2018 may be the best year to win the lottery, tax-wise.
What are the best brothels? Think that's what I would do with the winnings. I would sleep with all the hookers and then do blow till there is no more money left.
I hope a homeless person won, but most likely it’s some random farmer in Idaho that they pay to go up there n act like a winner.
