$66M is the annuity value, designed to be paid out over a term of typically 20-25 years. Taking the "lump sum" payout means you take a smaller amount, essentially the same as the principal that would buy the annuity. Most states do not levy state income tax on lottery winnings (not sure about Michigan), although federal taxes apply. Assuming a 28% federal tax rate, the actual lump sum payment would be about $39M, with $12M going to federal income tax.
Hopefully this woman will play it smart with her winnings. My advice: take the majority of that money and invest it in low-risk, income-generating investments. To wit: she can spend $2M on whatever she wants, invest the other $25M, and even at an anemic 2.0% APY, she'll pull in $500k in gross income a year, for life.
She needs a reputable financial advisor.
Based on the behavior of past lottery winners there is a very good chance she’ll be bankrupt within 5 years.
vtinx or vwinx or 50/50 each and kick back
There are investment companies that buy tax free municipal bonds. Shares of these companies pay up to 4.5% tax free dividends. that would equal $1,1255,000 a year tax free.
While your advice about this young woman is right, it wouldn’t be right for me. I have sufficient income to get me and immediate family through life. I’d pretty much give away most of the wind fall and have fun doing it, some, I would blow on small luxuries and maybe set aside a small percentage. Managing huge investments is not my idea of fun. It’s enough managing those I already have.
Plus the fact that I’m 69 years old.