purchase a couple signature randy rhoads marshall stacks & a couple polka dot flying Vs to match
help out family, friends & random folks
purchase land for farming: livestock, gardens & living (lots of trees)
open a butcher shop
open a bbq pit/smoke pit restaurant at the same location as the farm & butcher shop
start a trucking company
purchase heavy equipment & dig out a lake... just drive around a track hoe to check the mail... you know be a dick
live music... often & badass
work at trout hatcheries
Whats messed up with that? Most lotteries are paid over about 20 years, or you can take the lump some that's about 50-60% of the winnings. I think Powerball is the same. SO take a lump sum of however many hundreds of millions, there's going to be some taxes on that. 300 million after taxes is actually more than I expected.
You were that kid in school that when the teacher gave out free pepperoni pizza at the end of the year party, you just complained that the pizza wasn't ham and pineapple, weren't you?
I don't understand how a person spends half a billion dollars.
Without looking it up... i would say a ton of wasteful spending and giveaways, terrible investments, and a catastrophic disregard for tax ramifications.
If i were to ever win. I wouldnt tell anyone and quietly find the perfect financial/legal guy.
As far as spending, i probably wouldnt go too crazy. I wouldnt work or start a business. If anything, maybe run a charitable organization for dogs or nature or something. Probably build a house in a rural area. Best schooling money can buy for 2 kids... an rv bus to travel... nicer cars but i have no desire for anything too fancy. Mainly, just live comfortably for my years, and have plenty to pass on
70% is crazy!! Don't get me wrong, I'd splurge on myself and help some people out. But I'd make sure I had at least an attorney, financial adviser, and an accountant, if not more than one of each. That's a really good tip on the life coach, too. I'm sure a sudden drop of cash in one's lap would change a person's attitude, whether or not they'd care to admit it.
purchase a couple signature randy rhoads marshall stacks & a couple polka dot flying Vs to match
help out family, friends & random folks
purchase land for farming: livestock, gardens & living (lots of trees)
open a butcher shop
open a bbq pit/smoke pit restaurant at the same location as the farm & butcher shop
start a trucking company
purchase heavy equipment & dig out a lake... just drive around a track hoe to check the mail... you know be a dick
live music... often & badass
work at trout hatcheries
Whats messed up with that? Most lotteries are paid over about 20 years, or you can take the lump some that's about 50-60% of the winnings. I think Powerball is the same. SO take a lump sum of however many hundreds of millions, there's going to be some taxes on that. 300 million after taxes is actually more than I expected.
You were that kid in school that when the teacher gave out free pepperoni pizza at the end of the year party, you just complained that the pizza wasn't ham and pineapple, weren't you?
The lump sum payout was $480.5 million. Federal tax withholding: $120.1 million MA state tax withholding: $24 million
Initial Net Payout: $336.4 million
And she's probably not done paying taxes. Those withholdings are what the federal (25%) & state (5%) governments take up front. She'll likely pay about another 15% when she files her 2016 income taxes next year, or $72.1 million (of the gross $480.5).
Final net income: $264.3 million
So she'll net 55% of the gross lump sum payout, or 33% of the overall jackpot.
She would've been smarter to take the annuity. And that is what most people should do with lottery jackpots. I don't know what the figures are on those who take the lump sum vs those who take annuity, but if 70% of lottery winners end up bankrupt, I'd say it's safe to assume most take the lump sum and have no idea how to manage their money.
By taking the lump sum, not only do you get a smaller payout, you get taxed twice. You have the initial withholdings plus you pay taxes annually on any investment earnings. By taking annuity, not only can you better manage your money (you're guaranteed to get it for the next 29 years) but you also won't be taxed on investment income (since Powerball is actually investing the money in government holdings, which aren't taxed). Powerball also operates on an "annuity certain" meaning the annual payment does not stop when you die, but rather continues being paid to your estate. (The disadvantage to this being the IRS would take estate tax).
purchase a couple signature randy rhoads marshall stacks & a couple polka dot flying Vs to match
help out family, friends & random folks
purchase land for farming: livestock, gardens & living (lots of trees)
open a butcher shop
open a bbq pit/smoke pit restaurant at the same location as the farm & butcher shop
start a trucking company
purchase heavy equipment & dig out a lake... just drive around a track hoe to check the mail... you know be a dick
live music... often & badass
work at trout hatcheries
Whats messed up with that? Most lotteries are paid over about 20 years, or you can take the lump some that's about 50-60% of the winnings. I think Powerball is the same. SO take a lump sum of however many hundreds of millions, there's going to be some taxes on that. 300 million after taxes is actually more than I expected.
You were that kid in school that when the teacher gave out free pepperoni pizza at the end of the year party, you just complained that the pizza wasn't ham and pineapple, weren't you?
nice try
Was just making a joke, wasn't trying to fire you up if that's what you thought. Still, 300 mil still seems reasonable.
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brianlux
Moving through All Kinds of Terrain. Posts: 40,759
70% is crazy!! Don't get me wrong, I'd splurge on myself and help some people out. But I'd make sure I had at least an attorney, financial adviser, and an accountant, if not more than one of each. That's a really good tip on the life coach, too. I'm sure a sudden drop of cash in one's lap would change a person's attitude, whether or not they'd care to admit it.
Smart thinking, Dyer!
As a couple, my wife and I make less than the average for couples in our state and yet even we have a lawyer, a financial advisor and an accountant. It just makes sense to do so.
Post edited by brianlux on
“The fear of death follows from the fear of life. A man [or woman] who lives fully is prepared to die at any time.”
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Most lotteries are paid over about 20 years, or you can take the lump some that's about 50-60% of the winnings. I think Powerball is the same.
SO take a lump sum of however many hundreds of millions, there's going to be some taxes on that.
300 million after taxes is actually more than I expected.
You were that kid in school that when the teacher gave out free pepperoni pizza at the end of the year party, you just complained that the pizza wasn't ham and pineapple, weren't you?
If i were to ever win. I wouldnt tell anyone and quietly find the perfect financial/legal guy.
As far as spending, i probably wouldnt go too crazy. I wouldnt work or start a business. If anything, maybe run a charitable organization for dogs or nature or something. Probably build a house in a rural area. Best schooling money can buy for 2 kids... an rv bus to travel... nicer cars but i have no desire for anything too fancy. Mainly, just live comfortably for my years, and have plenty to pass on
Don't get me wrong, I'd splurge on myself and help some people out. But I'd make sure I had at least an attorney, financial adviser, and an accountant, if not more than one of each. That's a really good tip on the life coach, too. I'm sure a sudden drop of cash in one's lap would change a person's attitude, whether or not they'd care to admit it.
"Hear me, my chiefs!
I am tired; my heart is
sick and sad. From where
the sun stands I will fight
no more forever."
Chief Joseph - Nez Perce
Federal tax withholding: $120.1 million
MA state tax withholding: $24 million
Initial Net Payout: $336.4 million
And she's probably not done paying taxes. Those withholdings are what the federal (25%) & state (5%) governments take up front. She'll likely pay about another 15% when she files her 2016 income taxes next year, or $72.1 million (of the gross $480.5).
Final net income: $264.3 million
So she'll net 55% of the gross lump sum payout, or 33% of the overall jackpot.
She would've been smarter to take the annuity. And that is what most people should do with lottery jackpots. I don't know what the figures are on those who take the lump sum vs those who take annuity, but if 70% of lottery winners end up bankrupt, I'd say it's safe to assume most take the lump sum and have no idea how to manage their money.
By taking the lump sum, not only do you get a smaller payout, you get taxed twice. You have the initial withholdings plus you pay taxes annually on any investment earnings. By taking annuity, not only can you better manage your money (you're guaranteed to get it for the next 29 years) but you also won't be taxed on investment income (since Powerball is actually investing the money in government holdings, which aren't taxed). Powerball also operates on an "annuity certain" meaning the annual payment does not stop when you die, but rather continues being paid to your estate. (The disadvantage to this being the IRS would take estate tax).
thank you for that info
"Hear me, my chiefs!
I am tired; my heart is
sick and sad. From where
the sun stands I will fight
no more forever."
Chief Joseph - Nez Perce
MayDay, I like your post, its intent.
Still, 300 mil still seems reasonable.
As a couple, my wife and I make less than the average for couples in our state and yet even we have a lawyer, a financial advisor and an accountant. It just makes sense to do so.