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No winner yet, Powerball at $675 Million biggest in U.S History
- Thread starter Armadilo
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I think I read that it would be about a third of the lump sum, give or take.
I think the lump sum is now estimated at $490 million. But that is before taxes...so like 60% of that maybe? $290 million-ish. And since at least 3 people are gonna win Saturday you can divide that in thirds again.
BMO = GOAT
Member
So i am 22 y/o, taking the annuity would be the best choice with 800mil being the prize right? or the lump sum ?
LyleLanley
Banned
The answer, no matter how old you are, is always lump sum.
Netherscourge
Banned
At this point, the cash payout is more than enough to pay off the rest of your life and your kid's lives and get your grandkids into a good college.
And waste it all on hookers and blow and PC upgrades.
There are pros and cons to each method regardless of age. If you can manage money or hire good money managers it is likely better to have the lump sum all at once and invest it yourself (even though you are getting less and spending more of it in taxes). You will make more money (likely) long term on your own investments. But if you are shit with cash and dumb like a lot of lottery winners are, taking the annuity will give you a guaranteed 20 million or whatever for the next 30 years so you won't be bankrupt and homeless in 5 years.
nicoga3000
Saint Nic
Do people who take the annuity get taxed on that amount every year?
Netherscourge
Banned
I'll gladly take $96 million net.
BlueTsunami
there is joy in sucking dick
Lump sum, taxed once and you get to choose how to invest the full sum of money (assuming you plan on investing most of it).
Netherscourge
Banned
Yup, unless you live in a non income-tax state like Florida.
Annuity payouts count toward yearly gross income.
$372M after federal tax. Then take out whatever your state takes (typically 5%), so you're likely looking at $350M or so after all taxes, but expect another $100M before tomorrow.
Check here for exact amounts.
https://www.usamega.com/powerball-jackpot.asp
EDIT: We're also closing in the world jackpot record of $941M held by Spain's Sorteo Extraordinario de Navidad (Christmas Lottery) in 2012.
huh interesting. thanks for that. fed tax is 25% on that amount? I thought it was way higher.
EDIT - Why wouldn't it (or most of it) be taxed at 39.6%? It is the highest income tax bracket. Is it considered something other than income?
lump sum always is better...unless you are an idiot with money
long term investment pays off well.
my retirement fund has AVERAGED 10% a year (sometimes negative, sometimes upwards of 25%) for the past 20 years.
put 1million in said fund
after 10 years -excluding taxes- would be worth 2.593 million and you would only be taxed on the interest so it would double about every 10 years net.
living moderately off of ~300 million- you could fairly EASILY have trust funds setup for your family that -essentially- would make your family - overall- worth about 1 billion in under 20 years (barring a complete meltdown of the banking/investment industry)
i'm talking living and spending under 2 million a year and it would be doable 1% growth annual is 3 million in interest. invested correctly, you'll see 5-10X that amount annual in dividends and interest.
long term investment pays off well.
my retirement fund has AVERAGED 10% a year (sometimes negative, sometimes upwards of 25%) for the past 20 years.
put 1million in said fund
after 10 years -excluding taxes- would be worth 2.593 million and you would only be taxed on the interest so it would double about every 10 years net.
living moderately off of ~300 million- you could fairly EASILY have trust funds setup for your family that -essentially- would make your family - overall- worth about 1 billion in under 20 years (barring a complete meltdown of the banking/investment industry)
i'm talking living and spending under 2 million a year and it would be doable 1% growth annual is 3 million in interest. invested correctly, you'll see 5-10X that amount annual in dividends and interest.
Yes, in part because 25-30 years from now that money isn't going to be worth the same as today. For example,30 years ago $1mil was considered a shit ton of money. Today, that'll get you a decent house in CA and a little money in your savings account but you'll still have to work for the rest of your life.
Lump sum and invest in real estate is the best option.
A lot of them do, but I look at it like this: a person who is terrible at handling money while poor, is more than likely going to be terrible at handling money when filthy rich.
An idiot with a pocketful of lint, and an idiot with a pocketful of bills is still an idiot.
The people that have won the lottery and ended up on the worse end of it probably had other issues that, surprise, surprise, money couldn't solve. I'd definitely take the lump sum. I can't say I'd be this genius with money, but I also don't have much of a desire to live luxuriously and buy shit I'm not interested in for style points. All I want from this world is a comfortable place to live (not too big, not too small; big houses are creepy, small houses are cramped), food in my belly, and a reliable form of transportation. I doubt I'd blow through my millions travelling, as there are only a few places I currently want to visit (Europe and Japan being top of my list). Ideally, I'd love to invest my money into producing my comics, video games, and animated series, but even that would be small investment type deals. I'm not sinking $100 million into some kind of vanity project. The vast bulk of the winnings would be put into savings accounts, letting them gain interest while I live off of some kind of reasonable budget.
I'd just love to be able to devote my time to creating my art, and not having to worry about starving or being homeless, or wracking up thousands in medical debt. I don't need nor want gold plated jets, 30 room mansions, and thousand dollar socks. I know that's the more extravagant end of the rich person spectrum, but I'm not interested. My toys, movies, and video games are about the extent of my vices. My wife is pretty modest as well when it comes to that kind of stuff.
I don't know. It's fun to imagine what you'd do with that kind of money, but I'm pretty boring. No hookers and blow for this guy!
Digital-Hero
Member
That is exactly it. Who are these people beforehand seriously.
So I just crunched the numbers on the current $800M jackpot on Lump Sum vs. Annuity and..
*Assuming you invest both the 30 annual payments of $18.6M and the $346M identically and just let them grow (spend nothing), the breakeven RoR is around 3.4% annually. Any return less than that and its better to take the annuity, any return more than that and the lump sum generates more value over a 30 year run.
Peace.
*Assuming you invest both the 30 annual payments of $18.6M and the $346M identically and just let them grow (spend nothing), the breakeven RoR is around 3.4% annually. Any return less than that and its better to take the annuity, any return more than that and the lump sum generates more value over a 30 year run.
Peace.
AbortedWalrusFetus
Member
The pool organizer in my office scanned all of the tickets, then printed them and handed them out to everyone who opted in. Dude is organized as hell.
AbortedWalrusFetus
Member
Does not matter, no.
You have just as much chance as anyone (I bet the person who wins is thinking the same thing right now)....and no doesn't matter if you pick the numbers or let it go random, the balls give no fucks.
RumblingRosco
Member
1) Your odds of winning are the same no matter what numbers you choose.
2) Your odds of winning this Powerball are no greater than winning any other Powerball.
3) Your odds of winning the jackpot are 1 in 292,201,338.
4) As the jackpot increases, in general, more people buy tickets. So, the larger the jackpot, the greater chance you'll have the same numbers as another person. You still have the same odds of winning as with any Powerball and any numbers you choose, but this means you have a higher chance of splitting your jackpot winnings with another person (because more people are buying tickets and have a greater chance of having the same numbers are you).
Shabadoo69
Member
I just got my tickets. I'm feeling lucky this time.
Random Painted HIghway
Member
I only throw in at the office because fuck those assholes if they win and quit and leave me with all the work. It's not the thrill of winning, it's the devastation of not playing and them winning that makes me play at these times.
Grinchy
Banned
It matters if you personally know the numbers that are being picked like I do.
AbortedWalrusFetus
Member
Yeah, but who wants to watch out for the Time Cops for the rest of their lives?
Shortt Sirket
Member
Also, just buy one ticket. Unless you plan on buying an absolute SHITLOAD of tickets, there is no statistical difference in buying more than one ticket.
Lol yes there is. I think you meant "no meaningful difference."
Shortt Sirket
Member
Haha, fair enough.
Man this is so honorable. I want to be this way one day. Until that day comes.......
I'm splurging for a good few months on a vasectomy and strippers thinking I'm going to blow money on them and hit them with forgot my wallet. The world has yet to experience the historic levels of fuckery I'm coming with if I win. Think Armageddon world ending life shattering fuckery.
R10Neymarfan
Member
If you win can you report in anonymously? Like you can tell no one for a while and gives you time to wisely put away what you don't need?
depends on where you buy the ticket. Some states you can remain anonymous (very few actually). Some you can stay anonymous by setting up a trust to claim your prize. And some you cannot remain anonymous at all.
Depends on the state you live in.
The "no anonymous" thing is just crazy to me.
If I won that much money I would not want every one on the planet knowing I had that much money. That'd just be dangerous I think.
If possible, I would totally have a lawyer accept for me, and only tell a small number of people.
I really like my job, but if everyone knew I was a millionaire, it might be difficult to keep working.
Randolph Freelander
Member
Did you know
If you invested $2 per week until the year 2703 and achieved 8% annualized returns, you would accumulate 998 trillion trillion dollars.
(All you have to do is live for 688 years.)
Aeriscloud
Banned
It's almost as if the rest want to destroy your life.
PHOENIXZERO
Member
People treat won/found money different from what's perceived as "earned" money, Jack Whittaker's story, which apparently I'm a bit out of date on, is an example of that but I think David Edwards' story is a better tale of warning, Jack despite all his problems is still rich IIRC though it's been a couple years since I saw a story about him. But winning that kind of money is less of someone changing and more bringing amplifying the traits and issues that were already there. Other people however...
Except you'll be paying full state and federal (and city if you live somewhere with a city tax) taxes on it every year and who knows where taxes will be in a few years and you'll be paying state taxes in the state you won it in regardless of you still living there or not, you'd be better off taking the lump sum and investing it your self with the aid of a firm/planners, getting a better return than what the lottery provides wouldn't take a ton of effort.
Is that with or without having a trust claim it? Because I think the number is a little higher when you count states that allow people to claim under one. But yeah, the lack of full on anonymity is bullshit.
Except you'll be paying full state and federal (and city if you live somewhere with a city tax) taxes on it every year and who knows where taxes will be in a few years and you'll be paying state taxes in the state you won it in regardless of you still living there or not, you'd be better off taking the lump sum and investing it your self with the aid of a firm/planners, getting a better return than what the lottery provides wouldn't take a ton of effort.
Lump sum, always the lump sum. Cash out and get out.
It doesn't matter in this case, dumb lottery winners would just sell off their annuity for pennies on the dollar when they get desperate for cash just as they have in the past. It'd be better just to have a team to help you out while not, absolutely not letting them have free reign. Plus, it'd probably be good to take some classes on money management/investing, especially now that one could afford it. If just so you have an easier time following along and better understanding.
25% Is the initial amount you're taxed immediately at the federal level, you'll still likely have another 14.6% due next April though with how much time you have you could conceivably pay less, especially with a good tax lawyer.huh interesting. thanks for that. fed tax is 25% on that amount? I thought it was way higher.
EDIT - Why wouldn't it (or most of it) be taxed at 39.6%? It is the highest income tax bracket. Is it considered something other than income?
Is that with or without having a trust claim it? Because I think the number is a little higher when you count states that allow people to claim under one. But yeah, the lack of full on anonymity is bullshit.
Eh, how often do you hear about extremely wealthy people being killed etc. with money of course your going to have to change your lifestyle. Move to a certain wealthier area. More security. Hire body guards etc. also you aren't going to keep the money in cash. It'll be in banks
Tom Nook
Member
huh interesting. thanks for that. fed tax is 25% on that amount? I thought it was way higher.
Looking at that chart, looks like I'll be getting a refund.
Wish I could win the powerball.
Gray Matter
Member
Me and 40 other coworkers bought $87 tickets. Wish me luck!
Edit: make that 99
Edit: make that 99
Ahhh. Got it. That makes sense then
Pagusas
Elden Member
Looking at that chart, looks like I'll be getting a refund.
Wish I could win the powerball.
That 10% jump after 75k is brutal. Hit my wife and I hard when we got married.
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