Posted on 01/08/2016 12:51:41 PM PST by NRx
Evidence shows that most people who make it to the top 1 percent of income earners usually don't stay at the top for very long.
But the person who wins the $800 million Powerball jackpot during Saturday night's drawing, assuming one person wins the entire pot, will have such a large pile of cash that they can create a steady cash flow of millions of dollars a year without taking much risk.
"With this amount of money there's really no reason to be overly aggressive," said Jeffrey Carbone, managing partner and founding member of Cornerstone Financial Partners in Charlotte. "Lottery winners unfortunately try to get richer but now it's really about maintaining your wealth."
For someone taking the lump-sum, the prize would amount to an estimated $372 million after federal taxes, according to the website USAMega.com. After state taxes, that pot would be reduced to about $350 million -- though it could be more or less, depending on the state. (Ten states, along with Puerto Rico and the U.S. Virgin Islands, don't charge any state taxes on lottery winnings, according to USAMega.com.)
After investing that $350 million in a conservative portfolio that earns an average of 3 percent a year, the move could generate a steady cash flow of about $10.5 million a year. (And that's without spending down any of the actual prize money.) For the typical worker, that would be enough money to cover the bills, buy a nice car, offer some financial support to family and friends, and still indulge in some nice meals and a few vacations.
(Excerpt) Read more at washingtonpost.com ...
Something wrong. you say there’s a Jag in the picture?
I’d add another item to the to-do list: move. The winner’s home will be ground zero for the media and far too many folks succumb to the siren song of TV interviews and the inevitable cover of People magazine. Unfortunately, they don’t realize that going public allows people to put a face with the name and in this day and age, it’s even easier to spot the winner in public. And, with all the on-line databases, you can find their address in a manner of minutes.
If I were the winner, I’d establish some sort of real estate trust (or similar arrangement) that could purchase the home without my name on the deed. Preferable location would be a state with a minimum tax burden. Maintain as low a profile as possible, and refer all questions to a carefully selected attorney, whose standard answer is “no comment.” Most people don’t realize how many strangers will approach them for money and get hostile when they refuse their request, or decline to invest in their scheme.
Get rich and disappear sounds like a winning strategy.
Oh, and one more thing: get a concealed carry permit (if you don’t have one already).
Exactly in your post 19. I think I could meet those luxuries at about anything over $100,000 a year. Well, human nature being what it is and my not being immune, maybe $500,000. Still...
It’s one thing to go to a casino with relatively modest means, and another thing entirely with more money than you know what to do with.
You’ve read the stories of these clowns who win it big, get divorced and blow every cent on casinos, drugs, and hookers.
Obviously, not every patron of a casino is a drug addled sex and gambling addict. But then again, we’ve never had hundreds of millions dollars and nothing but time on our hands.
I wonder how different what I actually do would be from what I say/think I will do. It is hard to know about something so dramatic until you are there.
“I don’t see any car.”
As a recovering Jaguar owner, I’m always alert for them.
True, in most states. Unfortunately, too many winners decide to revel in their moment of fame and fortune and hold a press conference—which the lottery actively encourages.
Nothing like getting your face out in public, and creating even more security issues for you and your family. Anyone who wins $800 million doesn’t realize how many relatives, con-men, shysters and thugs will show up on their doorstep, or accost them in public.
After setting up funds to pay for the grandkids educations, and getting a solid 65’ sailboat for a world cruise, fully stocked and equipped, I’d be happy to invest whatever was left. Something like $10.5 million a year sounds doable.
I don’t think so. You can gift only around $14,000 a year. Two parents to a married child can gift the pair $56,000 a year.
Yes, I do know people can win big money and it is gone within a year. The first caveat would be do not let people know you won it. A trusted money advisor would be another requirement. It can make lives better or it can destroy lives.
Hell Norm, I already live in a city that has two mosques.
Not in all states.
Some allow anonymity.
“Winner is public record.”
I do not think so. As I recall, the state/town/city of the winner is public but if the winner wants no name used, it is not given or the winner can appoint a financial power of attorney to get the money for the winner, like an attorney.
I’d buy a new Supreme Court.
I’d buy new head coaches for the Gators football and basketball programs.
Maybe run for Senator. $352 million isn’t enough to run for President.
Just buy the championship outright. Don’t need any team. /s
Yeah just make the check out to "ESPN".
Why move? You’re already in the Promised land! PRAISE ALLAH!!! (PBUH) ;)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.