..this is a good point that I hadn't considered. Not all folks have the same behavior with money, so I can see the positives of a slow release via the annuity.
Ohio woman wins $15M jackpot but will take home just $4.5M after taxes — did she throw money down the drain?
- Thread starter Pack Rat
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..this is a good point that I hadn't considered. Not all folks have the same behavior with money, so I can see the positives of a slow release via the annuity.
Greed
For the life of me I don't know why people still don't have a will and a living will, it's not just for rich people
Can't let the money change you as hard as it's sounds to do. First and foremost don't quit your job and keep your mouth shut. You would be surprised the number of lottery winners that are out here still living a normal life with millions in the bank and ain't showing shit, my grandparents were notorious for doing this and I lived with them till I join the Navy after high school. Second get a LAWYER can't state that fact any clearer. Third pay off your debt and don't go spending money like your a entertainer or athlete cause you aren't.
Either you wait for the state to give you the money or you setup something with lawyers to give you the money. An annuity is always the logical and safest conclusion.
im speaking from personal experience
i didnt win a lottery but my income suddenly went up real fast.
im speaking from personal experience
i didnt win a lottery but my income suddenly went up real fast.
How much are birds going for these days?
Hahahaha
These two points are viable and exactly why you would hire a money dealer and quick.
i had a guy at my work tell me this about taking the annuity and he said he simply kept working after he won the lottery and invested all of his winnings into mutual funds and life insurance policies for EACH of his five kids. I said wait, they all have the money that you won and he said yes, every year for 5 years. And then after those 5 years, he started spending the access money he had while still investing the rest. That was 20 years.
This old dude driving a 5.7 Charger to work everyday, hardly wears any jewelry, rotates the same shirt and ties bi-weekly and brings his own lunch. I had NO idea.
oNE
If I'm 60 + give me my money now but if I'm younger give me all of my money and I'mma try to stay alive to collect it.
Because we all know most will fuck it up the first few years and that's ok but you have more coming to learn how to put it in investments that will give you something to build up off of for future generations.
Because we all know most will fuck it up the first few years and that's ok but you have more coming to learn how to put it in investments that will give you something to build up off of for future generations.
You just gettin revenge for me calling you a pimp.
I slang comic books mayne. I dont even know what a bird is or if its going for 53k or not.
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14 million over 30 years is clearly better than 4 million now.
Yep and what if she dies..take the cash. But why is she taxed twice? She won 15 mill taxed to 7.5 then taxed again to 4.5. How SWAY?
if everything was static she would pay 5million over the twenty yearsDepends on how old she is and what she plans to do with the money.
Also, they do the math on the $600k annuity and say she would have gotten the full $15 mill in 25 Years
.... but then just tell us about the tax implications without subtracting them like they did with the lump sum calculation
i i personally could do well off the annuity
Man, I forgot about that song.....lol, that song doesn't sound like he was having a good day.
The lump sum option is not a "tax" per se.... but the immediate cash value..... then it gets eaten up by state and federal taxes......
If you that worried about the family then take out a bigger life insurance on yourself. That's what the whites do.
My point was moreso the way most people operate, IF they took the annuity they may not be able to realize the full value of the payout......
With that said, I'd take the lump sum for anything over $10 mil..... for anything less I can take the annuities and still pass off as regular me.....haha
Still more then the 50 dollars she paid for the ticket.
She will not be receiving $15,000,000 over 25 years. She still has to pay taxes on the money. 600,000 a year will probably be taxed at 33%. Which would mean she would receive about $400,000 a year which equals $10 million over the course of 25 years. This is where the math comes in handy. If you take $3.5 million out of the 4.5 million that she will walk away with from the lump sum payout and put it into an ETF fund with an annual return rate of 10% over 25 years, you would have $34,421,000. Even if she only received a 5% return annually on a 25-year investment, you would still be looking at about $8 million.
To be honest, she could put $4 million of the 4.5 million that she will receive into a six-month CD, take a financial education course, meet with multiple financial advisors, pay herself $10,000 a month for the next six months, and still have $440,000 after the course is over to be able to make a better financial decision with her money.
This is where people like Warren Buffett truly understands compound interest. Too bad it took me until I reach my 40s to understand this.
You can do the numbers for on this site.
Investment Calculator
Free investment calculator to evaluate various investment situations considering starting and ending balance, contributions, return rate, and investment length.
www.calculator.net
i used that calculator in my previous post.She will not be receiving $15,000,000 over 25 years. She still has to pay taxes on the money. 600,000 a year will probably be taxed at 33%. Which would mean she would receive about $400,000 a year which equals $10 million over the course of 25 years. This is where the math comes in handy. If you take $3.5 million out of the 4.5 million that she will walk away with from the lump sum payout and put it into an ETF fund with an annual return rate of 10% over 25 years, you would have $34,421,000. Even if she only received a 5% return annually on a 25-year investment, you would still be looking at about $8 million.
To be honest, she could put $4 million of the 4.5 million that she will receive into a six-month CD, take a financial education course, meet with multiple financial advisors, pay herself $10,000 a month for the next six months, and still have $440,000 after the course is over to be able to make a better financial decision with her money.
This is where people like Warren Buffett truly understands compound interest. Too bad it took me until I reach my 40s to understand this.
You can do the numbers for on this site.
Investment Calculator
Free investment calculator to evaluate various investment situations considering starting and ending balance, contributions, return rate, and investment length.
she would be taxed at 25% each year in my state, with a 5% increase each year.
she would get closer to 14 million.
its certainly better than 4 million.
She only won $15 million; the federal income tax rate is 24%. That will leave her with $11.4 million before any other fees over the next 25 years, not counting inflation. The 4.5 million is a better deal if you are capable of managing your funds. If the person is in a state that doesn’t have a state income tax, then she’s probably going to walk away with $5 million or more.
This thread pops up at least twice a year now and the answer us ALWAYS the same....
Take the payout and consider yourself winning at life. You don't know what tomorrow holds. Fuck those 25 years of payments.
You invested $50 and walked away with 4.5 million = winning
The other 10 million were mythological dollars that only an true American capitalist would lose sleep over.
Take the payout and consider yourself winning at life. You don't know what tomorrow holds. Fuck those 25 years of payments.
You invested $50 and walked away with 4.5 million = winning
The other 10 million were mythological dollars that only an true American capitalist would lose sleep over.
Is should be common knowledge to seek an accountant before claiming the money. They even tell you to do so on the lottery website
Continue to work? Why would I do that?Greed
For the life of me I don't know why people still don't have a will and a living will, it's not just for rich people
Can't let the money change you as hard as it's sounds to do. First and foremost don't quit your job and keep your mouth shut. You would be surprised the number of lottery winners that are out here still living a normal life with millions in the bank and ain't showing shit, my grandparents were notorious for doing this and I lived with them till I join the Navy after high school. Second get a LAWYER can't state that fact any clearer. Third pay off your debt and don't go spending money like your an entertainer or athlete cause you aren't.
You cool with losing 5 million?
You're not adding in 5% increase in pay per year.
And again even if it was 11 million, that is 7 million more dollars than the lump sum.
There is not a situation in any reality where 4 million is better than 11 million.
Only people who have had that kind of money and have experience with growing that kind of money should ever think about a lump some.
everyone else should take the annuity. Once you get the money, giving up 10 million will seem like a lot
Bgol accountants>>>>>