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 ...
Make that -46- honorifics ;)
With $800 million you first spend $50 million to hire the best combat generals and staff. Then you spend $300 million to hire 50 divisions of combat troops.
Next, pick a banana republic, overthrow it and name yourself “Big Friggin’ Cheese No. 1.”
Live happily ever after, with money left over.
In my Off-Road.com days we covered the Moab event a few times. Watched one of these climb a damn near vertical wall on the Helldorado trail. No joke. Unimogs are just incredible.
https://en.wikipedia.org/wiki/Unimog
Delaware, Kansas, Maryland, North Dakota, Ohio, South Carolina
So wait...$800 million nets you maybe $350 million after taxes? $450 million is the government’s share for you winning??!!
Here's a 'rough' state by state Powerball analysis Powerball Jackpot Analysis https://www.usamega.com/powerball-jackpot.asp
LOL! I’ll go with a big smile on my face.
Yes, that is sort of correct.
If you get it in one lump sum, that jackpot is reduced to something less than half (IIRC), then taxed (federal and state, if any).
Annual payouts are taxed year by year and paid out over 35 years, I think.
I just checked and I was slightly incorrect.
The one lump sum is reduced to slightly MORE than half, then taxed at 25% federal taxes. An $800M jackpot, lump-summed and after fed taxes, would be $372M.
In my state (WA), there are NO state taxes on lottery winnings!
*Withholding* is 25%. Actual Fed tax rate is likely to be 39.6% or whatever the max rate is now.
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.
Definitely have new phone, email, and post office box ready. Lawyer and financial advisor who’s dealt with lottery winners. Accounts ready and open for incoming. Reservations made at an undisclosed location to go to immediately and a getaway plan in place after leaving the lottopalooza.
There’s a lot of pre planning necessary if you’ve got any sense.
Talk to Marcella! She’s the one who’s going to win by force.
Me too. At my age I could squander it everyday and not spend it all. That’s a lot of money. Everyone keeps talking about investing it. Me? I’d have the time of my life. 😂
The ticket must have the name or names of all the winners listed and signed. Then those are the people who get paid
And third cousins twice removed that you've never heard of...
I won a bunch of money one time. Spent most of it on women, drinking and gambling. The rest I squandered.
Step One, learn how to say NO.
That being said, I’m 62 and I have been afflicted with Leukemia for almost ten years.
I would spend the rest of my days giving away all the money.
My Oncologist will be the first guy I visit with a Check. If not for him, I wouldn’t be alive to buy the Ticket.
This Website would never need another FReepathon EVA!
Well, it’s fun to dream. LOL
“I really love where I live but I will tell you that my house will be for sale if I win $350M.”
And then move back “home” after awhile. I wonder if there is some sort of time limit involved - that you might have to wait some amount of time before claiming the new state as your “residence.”
Unless you of course are an illegal from Mexico. Then where ever you are is home. And it would be rude to inquire.
Interesting. Thanks.
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