He will have to pay 37% Federal income tax and that’s it. Incredibly, California does not tax lottery winnings. So he should walk away with a little over $6 million. If I were him, I’d move to a low (or no) tax state. Then put $3 million in a low cost tax exempt bond fund. That should yield around $100k tax free per annum. That’s not enough to live the Trump lifestyle, but it is a comfortable middle class income that he won’t have to work for. Then I’d put $2 million in a dirt cheap total US stock mkt index fund and $1 million in an international stock mkt index fund. Set the dividends to reinvest and ten years from now, the odds suggest he will have doubled that money. Anything left over I’d pay off any debt and then buy gold coins and lock them in a safe deposit box.
Thanks for the research to get this right.
Your plan is a good one, but the odds are the winner will not follow it.
That 10 mil would be played over a period of 30 years. Cash value would be maybe 6 mil. Then the 37% from that.