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Man wins Lotto jackpot two days after divorce from cheating wife finalized
- Thread starter The Promised One
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D
Deleted member 1235
Unconfirmed Member
From winning 1 million bucks you only get 289 grand? That's fucked.
Cerebral Palsy
Banned
catfish said:
Yeah, they fuck you in the ass if you take the money now. If you decide to take payments over so many years (50 or so?) you get the whole amount I believe. Well, minus taxes.
Man the cash option sucked in that case, how impatient can you be?
Reminds me of that guy in Ontario who won like 10mill but waited almost an entire year to claim it about a week before the ticket actually expired. Said he was just "making plans" and getting his affairs in order, but then it came out that he was recently seperated when he won and was trying to finalize his divorce in his pre-millionaire days. Haha, who wouldn't do the same.. I wonder if it worked.
Reminds me of that guy in Ontario who won like 10mill but waited almost an entire year to claim it about a week before the ticket actually expired. Said he was just "making plans" and getting his affairs in order, but then it came out that he was recently seperated when he won and was trying to finalize his divorce in his pre-millionaire days. Haha, who wouldn't do the same.. I wonder if it worked.
I just hate it when old fucks win the huge lotto pots. More 30 year olds should win, guys who could really enjoy the living hell out of sudden riches while they're young enough to really do some damage.
Heh, I have 4 little brothers and I keep telling my mom if I ever won a lottery I'd give all my teenage brothers (the 3 dumbest younger ones) a nice chunk. But no stupid trust fund or killjoy managed account, I'd give them a paper grocery bag full of rolls of $20 bills and tell them to make the town tremble in fear of what their goofy nouveu riche jackass brains would think to do next.
Heh, I have 4 little brothers and I keep telling my mom if I ever won a lottery I'd give all my teenage brothers (the 3 dumbest younger ones) a nice chunk. But no stupid trust fund or killjoy managed account, I'd give them a paper grocery bag full of rolls of $20 bills and tell them to make the town tremble in fear of what their goofy nouveu riche jackass brains would think to do next.
calder said:
The cash amount is actually the current value of a million dollars in twenty years.
If he invests it, and things go as predicted, the cash option would equal a million dollars by the time the full winnings are paid out.
Even if this guy hadn't won the lottery, he sure could have had a successful country music career. Coming home with diarhea to find your wife fucking the neighbor? HIT!
D
Deleted member 1235
Unconfirmed Member
Wow, I prefer the NZ lottery system.
Congratulations, you have hit the powerball, here is 15 million dollars in a briefcase, tax free (well pre-taxed before thy announce the prize i spose).
Congratulations, you have hit the powerball, here is 15 million dollars in a briefcase, tax free (well pre-taxed before thy announce the prize i spose).
Phoenix
Member
By default you will get the cash sum. if you don't specifically ask for annuity, the machine will generate a cash ticket. Most people who play infrequently (like myself) just do a quickpick. Money here in atlanta goes to the school system so throwing out 2 bucks a week when I fill up the tank doesn't bother me.
Up here we get the lump sum, cash free.
Due to this the Canadian version of "Who wants to be a Millionare" actually had a HIGHER top prize than the US version.
(The us version top prize was about $644,000 I think after taxes, and the Canadian top prize ends up being about $750,000 USD)
Due to this the Canadian version of "Who wants to be a Millionare" actually had a HIGHER top prize than the US version.
(The us version top prize was about $644,000 I think after taxes, and the Canadian top prize ends up being about $750,000 USD)
Everything I've ever read about lottos say you should *always* take the cash even if it is less that 50% of the payout. It's not because of greed.. it's simple math.
By taking the cash payout, you pay all the taxes all at once and can immediately invest the rest of the money. That way you can make more money in interest (often enough to live off of). If you were to take the payments slowly year after year... you'll eventually end up getting less over time due to inflation and increasing taxes.. and you couldn't invest as much.
By taking the cash payout, you pay all the taxes all at once and can immediately invest the rest of the money. That way you can make more money in interest (often enough to live off of). If you were to take the payments slowly year after year... you'll eventually end up getting less over time due to inflation and increasing taxes.. and you couldn't invest as much.
Justin Bailey
------ ------
I wish it were true though. . .
The Promised One
Banned
Dammit.
andthebeatgoeson
Junior Member
ckohler said:
That and you can assume you'll find a better return on your investment.
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
If you plug it in right, assuming $289,000 as the principal, no annual additions, 25 years to grow and a 5% interest rate with a annual compounding, you get a lump sum of ~$976K. About a million.
If you look at historical data, even taken inflation into account, over a period of 25-30 years, you can exceed 5% easily. If you go up to 7%, then you are talking $1.5 Million. If you get on a hot streak, 9% will get you up to $2.4 Million.
I'm currently trying to find links to support this but it all came from my mom who started in accounting and progressed to investment banking. She always said that the lump sum is the better option. Needless to say, this is for a guy thinking 25 years into the future. The better option is thinking 40-50 years into the future. Even if we had the annuity payment, you could plug it into the equation, considering a zero principal and have the annuity be the annual addition. This is all ignoring any amounts you would take out for hookers and drugs and beer. But you can assume it'll either come out of the annuity or your interest payments.
You idots should remind yourself to give me all money you win from a lottery cuz taking the yearly payout is ripoff. I'll take good care of it.
StrikerObi
Member
Cerebral Palsy said:
Edit: What he said ^^
Time value of money. If he takes the money now he can invest it however he wants an earn so much interest every year. If he takes it over 50 years or whatever it gets paid out in an annunity, with interest factored in. It's probably a very similar outcome either way. I'd do the math right now but I don't have a calculator or my finance class notes on me. Plus I don't have the interest rate he'd be investing at.
Litigation Manuel
Member
bishoptl said:
Did someone say Litigation!? Fantastic. Using my keen Litigation Sense, I can tell that it sucks that this story isn't true, because it made the heart feel good. I will now leave to use my litigation powers elsewhere!
What sort of investments guarantee 5-7% a year?
If you just take the lump sum then you never really get to spend any of it, and have to be managing to make sure you are getting a consistent return from your mutual fund or whatever. I'd rather have the worry-free yearly payment =)
If you just take the lump sum then you never really get to spend any of it, and have to be managing to make sure you are getting a consistent return from your mutual fund or whatever. I'd rather have the worry-free yearly payment =)
andthebeatgoeson
Junior Member
http://money.cnn.com/2004/07/09/pf/saving/lottery_windfall/
Here's what I don't get, now that I'm looking around. The guy clearly states that he doesn't think you can get a interest rate on $40 million over 26 years to get back up to $100 million. But if you assume a 5% interest rate over 26 years with compounding, you'll get $142,226,907.52. Now that's assuming you don't take any money out and dedicate it all to investing it. But I would assume you would take money out of the annuity, if you end up taking from your investments whether you go with the annuity or lump sum. I just want to illustrate the potential without making assumptions of how much of costs.
The chick they described could have took an annuity of $11 million, pre-tax over 26 years to add up to $294 million or took the lump sum of $117 million, after taxes.
Future value with just the principal, 5% interest, annual compounding and no additions:
A FUCKING WHOPPING $416,013,704.49.
Someone want to try and explain what I'm doing wrong? Besided leaving out that the annuity at $11 million is pretax so you'll assume Uncle Sam is gonna eat into that.
Even if Uncle Sam takes out 50% when you die, after taking the lump sum, it still overshadows anything the annuity would have done, I'm guessing.
Foolishness is taking the annuity. But then again, the people from the lottery would say take the annuity, cuz they only have to pay you so much and they can keep the rest.
Oh well, it's all right here:
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
andthebeatgoeson
Junior Member
border said:
Uh, you can pay people, the same people who manage the trust funds and large investments for huge universitys and huge corporations to take care of your money. There was an article in Playboy when Anna-Nicole Smith was suing for that dead guys money that states the same thing, invest it, get a great investing firm behind you and for that amount a loot, you ARE YOUR OWN CORPORATION, there will be somebody to invest it wisely for you.
Places like Harvard and Penn have huge cash and investment money and they need it to be manage so it grows and gives them a constant source of income.
And assuming a 5% interest over 25 years can be done but over 40-100 years is well within boundaries.
http://eh.net/hmit/ppowerusd/
A dollar in 1960 would be worth $6.22. That's 622% growth over those years. Whose to say you can't multiply $100 million of todays dollars by 6.22 and get a similar result in 40+ years? Then, I wouldn't be able to spend it all, neither would my kids, or their kids or their kids. Then they would never be denied access to Wharton or Harvard Med or Yale Law cuz they didn't have the money or they didn't go to the right private school. And in a few hundred years, your last name can go down in history with the Rockefellars and they'll put your name on a few dozen schools. Cuz you gave to charity.
Oh well, I can only dream.
Edit: A lump sum of $100+ million gives you more than enough spending 'change', Border. Hell, at 1%, that's $1million dollars a year in interest. If you so choose, you can just spend that interest and let the rest sit in investments. Hell, that's $1 mil more than I'm making a year and would be plenty to set me up for the rest of my life. I'd go to Asia and slap Rickey Williams in the head for $1mil a year in interest.
RobotChant
Member
Yeah, everything I've seen or heard has said to take the lump sum. If invested correctly, you'll end up better off.
And how much do large money management firms take out? Now there is another finger in the pie.....and those guys still do not guarantee a steady 5% return.skinnyrattler said:
The dream of winning the lottery is being able to lounge around all day and snort blow off a nubile 16-year-old Brazillian girl's ass. I guess I just don't see much allure in taking a pathetic 30% of my winnings, and continuing to work my ass off while I sit around and watch that cash gain interest. At 5%, your initial investment will double every 15 years, but that's only assuming you don't touch it....once you start skimming to pay for living expenses then the whole timeline is kinda fucked.
Nobody ever gets a lump sum of 100 million.....though if the lump sum is more than enough to live off interest while continually re-investing, then it's probably worth it. For a small prize like the guy in this (admittedly fictional) story, I would definitely be torn between the two choices.
Crazymoogle
Member
bishoptl said:
Yeah, from what I read he actually has more than one ex. The situation is about as big of a mess as it gets so I'm not surprised he has a trained legal team fresh out of the kennel.
As I recall, we (canadians) don't have to pay taxes on lottery winnings, right?
also, if you die in a car wreck a week after winning and took the payout over time, NO ONE can get that money. You cant will it to someone. So you take the lump sum, since you can put it in your will, and if something happens to you, your family is taken care of.
RobotChant
Member
If your money is tied up in a safe investment, you should be able to acquire a loan or attain a nice credit line. There might not be any 16 yr. old Brazilians around, but you'll still be lounging.
RobotChant
Member
border said:
Heh... Good point.
Blackace
if you see me in a fight with a bear, don't help me fool, help the bear!
His new hit single coming out next month
Got a bad case of diarrhea my wife is porking the neighbor, just got my favorite Bee Gees 8 track eaten by my 8 track player./ But now that tramp is gone and you know it is all good, because I took the lump sum and you wonder why I would./ The reason is simple cause I need money to get my relief... I tell ya what ImodiumAD and hookers aint cheap!
Got a bad case of diarrhea my wife is porking the neighbor, just got my favorite Bee Gees 8 track eaten by my 8 track player./ But now that tramp is gone and you know it is all good, because I took the lump sum and you wonder why I would./ The reason is simple cause I need money to get my relief... I tell ya what ImodiumAD and hookers aint cheap!
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