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 ...
“That’s interesting information. It’s pretty much what I’d do, except the dog is driving to the lottery headquarters with me- not leaving her to deal with doorbells and knocking on the door.”
Probably be better to kennel the dog. I think the process of collecting your winnings is a bit more complicated than cashing a check. You’ll probably be there longer than you want to leave your dog in the car and I doubt they’ll let you bring her inside.
One of the problems is keeping your mouth shut. It might take a week or so to do all that planning. You’ll need to find a good lawyer and wealth advisor and meet with them prior to collecting the funds. Can you keep from talking all that time?
I would imagine the pressure on a large prize lottery winner to donate to charities and every relative no matter how remote would be immense.
The first thing I would do is get new phone numbers and close any email accounts that I had, and then go into hiding for 3-6 months until the fever went down.
The next thing I would do is hire a lawyer, an accountant and an investment adviser to help me decide where and how to store the money.
I would put $50K into a basic checking account with a debit card for walking around money for the few months that I was underground. My only contact would would be with the lawyer and investment guy.
After the fever is gone and everyone else has moved on with their lives would I begin to remake contact with people.
There is a time limit to claiming a winning ticket, so one doesn’t have to present it immediately. Crazy flush of winning has to be overcome.
Get a lawyer and accountant to advise how to make your claim while keeping your name hidden from the public.
Then present your winning ticket and enjoy it quietly.
Jackpot is up to $900M now.
According to usamega.com, the one lump sum payout, after 25%$ federal witholding, is now $418.5M. Annual payout, after federal witholding, is now $22.5M per year.
If you go by what jjotto says, the lump sum payout is $337,032,000. STILL a whole piddlepot full of cash.
“According to usamega.com, the one lump sum payout, after 25%$ federal withholding, is now $418.5M. Annual payout, after federal withholding, is now $22.5M per year.”
No doubt that is what they are saying but that assumes there is only one winning ticket sold. In most cases, these super jackpots, have multiple winners. For example, $900M, three winners, you split it equally, ie, $300M each. The lump sum after taxes would be about $140M.
If I only won $140M, I still think that with good budgeting, I could probably make it.
The first number is... NOT YOURS! The second number is... NOT YOURS! The third number is... YOURS! (But you don’t win anything for one match.)...
Very funny. Guess my ticket should read:
00-00-00-??-00-02
(I’m retired)-(No Car Payment)-(No debt)-(I’m not saying)-(no coworkers)-(02)
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