Poll of the Day > How much of the $758M Powerball would you get after taxes in your state?

(+) Yeah! (+)

And what would you do with that amount? (Assume you are the sole winner).

http://www.afterlotto.com/powerball-taxes

Buy a modest castle, probably invest the rest and put it into a trust. Then my will shall stipulate that my eldest male heir -- and, failing that, my closest, eldest male relative -- will inherit my lands and receive an annual stipend from the trust, with the trust advancing to their eldest male heir or closest, eldest male relative. This will ensure that the ancestral wealth actually lasts, unlike 67% of families where the wealth is lost by the second generation and 95% of families where it's lost by the third generation. #BringingBackPrimogeniture
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$329,223,916.92

Give half to my bestie

Invest the rest.

Pay off my debt.

Pay off debt of my immediate family. Set up college savings for my niece and nephews. Then never give any of them money again.

Then I'd quit my job and do whatever I god damn well pleased to do.
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Jen0125 posted...

$329,223,916.92

Give half to my bestie

That's just crazy talk.
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What the fuck? California has no lottery tax?!

GRTooCool posted...

Jen0125 posted...

$329,223,916.92

Give half to my bestie

That's just crazy talk.

Hell no. We both need to be lazy af together. Plus we made a pact so she would do the same for me if she wins. Mutual benefit.
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$352.7 million lump or $568.5 million over 30 years. probably would do the 30 year at my age unless some financial advisor convinced me i could make up that 200 million+ through investments

i don't think i would do much different besides not work and spend more time at some tropical paradise

Canada.... 100%
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Lokarin posted...

Canada.... 100%

Joke. It'd be shared by all...

Lokarin posted...

Canada.... 100%

except our highest lottery is only $60,000,000
Unless you are amazingly lucky and purchased 1,000 of the same ticket number, and got one of the maximilian prizes, as they need to pay out 1,000,000 for each of those
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Y'see, in Canada we don't have taxation without representation. Any taxes claimed on a lotto would have to improve the lotto in some way, which it doesn't need.
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Lokarin posted...

Y'see, in Canada we don't have taxation without representation. Any taxes claimed on a lotto would have to improve the lotto in some way, which it doesn't need.

Eh?

All of it because I would move to Puerto Rico before cashing it
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I'm not sure. Is the payout assessed by where you live, or where you bought the ticket? Afaik, they don't sell powerball tickets here in Texas, but I can get to New Mexico in a few minutes by car and get one there.
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$319,817,519.29

I'd give it all to the US Army in exchange for letting me finally enlist. Then I'd stay in the rest of my life living like Kurt Russell from the movie Soldier.

(I have a blood disorder that disqualifies me)
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About 352M for one single payment. But what would do with all that when annual payments of 8-35M would satisify me fine?

Pay off family debts, buy a car, pay for tuition for both my elder sisters and me, pay for parents' retirement fund, and plan for the future.
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338 million and 500something for annuity.

what would I do? Build a new house on my property(i aint moving) that would be sweet. pay off debts of friends and family, give money to people i know who need it(such as people working two jobs, I'd still want them to work but I'd pay them what the other job did), then spend probably a considerable amount of money helping strangers out.

$338,301,090.63 on single payout

but i kinda like the idea of getting big bunches of money once a year. first payment is 8mill. that's far more then enough to live for the next 10 years.

but idk seems like the single payout is simpler.
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$758 million of it. Lottery earnings aren't taxed here.

They tax the sale of the lottery ticket when it's sold. Taxing the earnings would be the government double dipping, which is not acceptable.
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I am Canadian. Lottery winnings are tax free.
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faramir77 posted...

$758 million of it. Lottery earnings aren't taxed here.

They tax the sale of the lottery ticket when it's sold. Taxing the earnings would be the government double dipping, which is not acceptable.

What stay do you live in that isn't subject to Federal income taxes?

Lump sum: $353 million
Annuity: $568 million

It'd be tempting to get the $353 million in the lump sum, but I'd probably get the annuity option.

Of course, the harem route is always the best route.
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Duck-I-Says posted...

faramir77 posted...

$758 million of it. Lottery earnings aren't taxed here.

They tax the sale of the lottery ticket when it's sold. Taxing the earnings would be the government double dipping, which is not acceptable.

What stay do you live in that isn't subject to Federal income taxes?

Alberta.
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faramir77 posted...

Alberta.

http://www.ctvnews.ca/canada/how-a-canadian-powerball-winner-could-pocket-more-money-than-an-american-1.2732408

"Under U.S. law, the Internal Revenue Service can "generally" withhold 30 per cent of "gambling winnings paid to a foreign person," so Canadian winners aren't totally off the hook for federal taxes."

They'd withhold 30% from your winnings.

AllstarSniper32 posted...

Lump sum: $353 million
Annuity: $568 million

It'd be tempting to get the $353 million in the lump sum, but I'd probably get the annuity option.

Of course, the harem route is always the best route.

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)
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Zeus posted...

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

You're right of course, but most people are going to spend a good chunk of the principal, so it's unlikely to accumulate to $831m at 3% for 29 years unless you stay at your exact standard of living beforehand and are currently living within your means.

That being said there probably is some benefit to the annuity strictly for people who simply cannot control their spending habits. It makes it so they won't become one of those horror stories people buying a $300 million mansion and a 8 yachts and ending up totally broke within 5 years. Someone who has a basic understanding of money management, though, should always take the lump sum.

Zeus posted...

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

If you're getting $8 million for the starting payment, then it looks like you get more with each payment, you shouldn't have to worry about something like investments. But then again, I don't know anything really about investments though. That's something I'd have to learn if I were to win something like this though.
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AllstarSniper32 posted...

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

Far larger principal investment + compound interest = more money

Zeus posted...

AllstarSniper32 posted...

Lump sum: $353 million
Annuity: $568 million

It'd be tempting to get the $353 million in the lump sum, but I'd probably get the annuity option.

Of course, the harem route is always the best route.

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

Except you neglected to work in any interest on the annuity. Assuming the same 3% interest, given a $568M payout (or $18.9333M per year), the annuity would get you a little over $900M at the end of 30 years if you didn't touch any of the principle. It does take until year 27 for the annuity to pass the lump sum, though.

If you want to check my numbers, I made a simple Excel spreadsheet:
Cell A1 is 353, B1 is 568/30
Cell A2 is A1*1.03, B2 is B$1+B1*1.03
Then just expand down to row 30.
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Duck-I-Says posted...

AllstarSniper32 posted...

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

Far larger principal investment + compound interest = more money

Why do I need more than $568 million dollars?
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AllstarSniper32 posted...

Duck-I-Says posted...

AllstarSniper32 posted...

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

Far larger principal investment + compound interest = more money

Why do I need more than $568 million dollars?

Yeah, it sounds crazy but millionares want more and more. They never want to stop just because they "have enough". Look at all these athletes demanding insane amount of money to play a sport as an example.
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Duck-I-Says posted...

Zeus posted...

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

You're right of course, but most people are going to spend a good chunk of the principal, so it's unlikely to accumulate to $831m at 3% for 29 years unless you stay at your exact standard of living beforehand and are currently living within your means.

That being said there probably is some benefit to the annuity strictly for people who simply cannot control their spending habits. It makes it so they won't become one of those horror stories people buying a $300 million mansion and a 8 yachts and ending up totally broke within 5 years. Someone who has a basic understanding of money management, though, should always take the lump sum.

Like I said, even if you spent $30m -- which is a massive amount of money -- you're still looking at a larger payout.

AllstarSniper32 posted...

Zeus posted...

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

If you're getting $8 million for the starting payment, then it looks like you get more with each payment, you shouldn't have to worry about something like investments. But then again, I don't know anything really about investments though. That's something I'd have to learn if I were to win something like this though.

You can consistently get a 3% return year after year, so the final amount of money will exceed what you get over the 29 years.

Blaqthourne posted...

Zeus posted...

AllstarSniper32 posted...

Lump sum: $353 million
Annuity: $568 million

It'd be tempting to get the $353 million in the lump sum, but I'd probably get the annuity option.

Of course, the harem route is always the best route.

Annuity is the strictly worse option. Assuming you get a 3% return year-to-year on your investment, the overall payout over 29 years would be $831m (or, assuming that you spent $30m up front, it'd still be like $751m)

Except you neglected to work in any interest on the annuity. Assuming the same 3% interest, given a $568M payout (or $18.9333M per year), the annuity would get you a little over $900M at the end of 30 years if you didn't touch any of the principle. It does take until year 27 for the annuity to pass the lump sum, though.

If you want to check my numbers, I made a simple Excel spreadsheet:
Cell A1 is 353, B1 is 568/30
Cell A2 is A1*1.03, B2 is B$1+B1*1.03
Then just expand down to row 30.

You don't collect interest on the annuity payment option, it's already factored into the overall payout (hence why it's higher than the lump sum option). Unless you mean you're investing the money as you collect the timed payouts, but you have a far lower principle for the compounded interest.

And that's the formula I used to determine that the lump sum -- even with money taken out -- exceeds the total payout from the annuity option.
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AllstarSniper32 posted...

Duck-I-Says posted...

AllstarSniper32 posted...

How is $568 million overall worse than $353 overall? are you just meaning investments? Since I didn't read that when I first read your post?

Far larger principal investment + compound interest = more money

Why do I need more than $568 million dollars?

Technically you probably wouldn't need more than the $100m, but are you going to tell them to keep the rest of the money? It just makes sense to go for more money since you can set up a long-term estate.
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Zeus posted...

You don't collect interest on the annuity payment option, it's already factored into the overall payout (hence why it's higher than the lump sum option). Unless you mean you're investing the money as you collect the timed payouts, but you have a far lower principle for the compounded interest.

Yeah, investing it as you get it paid out, just as you did with the lump sum. You're getting paid out just under $19M per year, so you're going to be adding that every year to the principle plus the 3% interest on your previous p&i. I'm sure you have Excel or some other spreadsheet program. Plug my formulas in and you will see it catch up and pass the lump sum.
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Zeus posted...

Technically you probably wouldn't need more than the $100m, but are you going to tell them to keep the rest of the money? It just makes sense to go for more money since you can set up a long-term estate.

"Them" who?
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$320,287,839.17

Invest and live off the interest. I'd go on some trips and get better internet for sure. Other than that I have really no idea.

Best wishes to the woman who's now in this situation.
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So, With Mississippi not there I guess that means there'd be no tax?, Either way, probably pay off any debts we had, fix/replace some of the stuff that needs fixing/replacing around here, do some selfish shopping all around the four of us, then probably just live off the rest, Me and my brother would still look for jobs, but it'd be nice to have THAT much spending money laying around....
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Definitely invest in half, MAYBE help out capcom


However I'm not a fan of MA requiring me to show my face after I win, I hate that law so fucking much because not only is it dangerous but incredibly unnecessary.
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Kaguya_Kimimaro posted...

So, With Mississippi not there I guess that means there'd be no tax?

The states that don't play Powerball are omitted from the list.
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psa: never take the lump sum unless you don't think you will live that long. the yearly payout is a much better choice
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I'd take the payments. I'd still work too, because I like my job and to stay busy/out of trouble.
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Lump Sum: $332,751,316.03

Annuity: $536,285,000.00

First thing I'd do with the money: Either hire security or buy a car/van.
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mastermix3000 posted...

Definitely invest in half, MAYBE help out capcom

Wtf why
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faramir77 posted...

mastermix3000 posted...

Definitely invest in half, MAYBE help out capcom

Wtf why

Because he's bad with finances even though he works in accounting
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