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 ...
50% in tax exempt bonds (VWLUX). 30% in US stocks indexed (VTI). 10% in international stocks indexed (VEU). 10% in physical gold bullion as an insurance policy stored overseas. And finally enough money in cash or a near equivalent (VGSH) to live like a pharaoh for the next 20 years or so.
I still wouldn’t mind winning.
I would use the money to build an Obamacare website. (if it’s enough)
You mean like avoiding casino’s, hookers, and drugs?
1. Don’t have a posse.
1. Shut up
2. Lawyer up
I drove by the nearest lottery outlet at lunch. There was a line of players 500 feet long out the door.
Your top priority is the safety and security of your family.
Be patient and claim your prize anonymously.
Can’t in your state?
Then MOVE first you dim whit!
The bobbleheads in the “media” love to tell you the odds of your chances of winning. Just think. The person(s) who wins it have the same odds of winning than you do.
2. Lawyer up
3. Do 1 and 2.
Winner is public record.
4. Change all of your phone numbers and email addresses before telling anyone.
There’s a handful of states that allow you to remain anonymous, about 6 I think.
But one doesn’t have to go on the nightly news the day after.
I like to squander it.
Finally start a Facebook account so all your long-lost friends and relatives know how to contact you.
If for some reason you win this, you need to act fast. First contact a major law firm and financial advisers who are used to dealing with this sort of money on a daily basis. Then follow their advice.
“$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.”
What? this makes it seems like a “typical worker” would have to be frugal on $10.5 mill a year.. Cover bills? Buy a nice Car? you could buy a new nice car every year and take a 3 month vacation and not use up the $10.5 Mill unless you spent like Donald Trump....
Sorry, six states allow the winner to remain secret. I am closest to Kalifornia so ...
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