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Living off of winnings VS living off of interest.

Topic closed. 53 replies. Last post 4 years ago by rdgrnr.

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How much money would you need to live off of without investing?

$500,000 [ 10 ]  [12.05%]
$1,000,000 [ 3 ]  [3.61%]
$5,000,000 [ 12 ]  [14.46%]
$10,000,000 [ 7 ]  [8.43%]
$20,000,000 [ 13 ]  [15.66%]
$50,000,000 [ 17 ]  [20.48%]
$100,000,000 [ 6 ]  [7.23%]
$1,000,000,000 [ 15 ]  [18.07%]
Total Valid Votes [ 83 ]  
Discarded Votes [ 7 ]  
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CA
United States
Member #84266
December 26, 2009
410 Posts
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Posted: August 23, 2010, 3:11 am - IP Logged

So I made an Interest Analysis in Excel showing how much interest I will earn at different APRs and different initial deposits. Then I thought about how much money I would need to live off of without ever having to work or earn interest from investing.

Think of the tax benefits of not investing. You would only have to pay income tax for the initial winnings for the year you win in and nothing else after that because you won't be working or have any kind of earnings.

It would need to be a large amount to do it but how much would YOU need?

    Avatar
    Delaware
    United States
    Member #93505
    July 1, 2010
    404 Posts
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    Posted: August 23, 2010, 6:52 am - IP Logged

    I say about $20,000,000 for they way I LIVE now. Now, of course if I wanted to live a really lavish lifestyle, it probably take $100,000,000 or so.

      Raven62's avatar - binary
      New Jersey
      United States
      Member #17843
      June 28, 2005
      17937 Posts
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      Posted: August 23, 2010, 8:49 am - IP Logged

      So I made an Interest Analysis in Excel showing how much interest I will earn at different APRs and different initial deposits. Then I thought about how much money I would need to live off of without ever having to work or earn interest from investing.

      Think of the tax benefits of not investing. You would only have to pay income tax for the initial winnings for the year you win in and nothing else after that because you won't be working or have any kind of earnings.

      It would need to be a large amount to do it but how much would YOU need?

      What Interest Rates (0.5%, 0.75%, 1.0%) did you use, and what is the Income after Taxes?

      A mind once stretched by a new idea never returns to its original dimensions!

        rcbbuckeye's avatar - Lottery-043.jpg
        Texas
        United States
        Member #55889
        October 23, 2007
        3192 Posts
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        Posted: August 23, 2010, 9:26 am - IP Logged

        Funny... I was just looking in the paper yesterday for CD rates, and the best rate was 3% for a 5 yr CD. There may be other investments that can pay more, but are more risky. (I know about that on a personal level).

        I have thought about what it would take to live just on principle, and not interest. It would take about 5 million for me to live comfortably the rest of my life.

        But I would rather have enough to live on the interest and let the principle be the income producer.

        CAN'T WIN IF YOU'RE NOT IN

        A DOLLAR AND A DREAM (OR $2)

          tiggs95's avatar - Lottery-036.jpg

          United States
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          November 4, 2006
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          Posted: August 23, 2010, 10:38 am - IP Logged

          When your real old like ridge you really don't need that much..Plus he married 5 rich wimin and got a big settlement when they dumped him..They said to ridge to name a price then get out!!..

            four4me's avatar - gate1
            MD
            United States
            Member #1701
            June 18, 2003
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            Posted: August 23, 2010, 10:50 am - IP Logged

            When your real old like ridge you really don't need that much..Plus he married 5 rich wimin and got a big settlement when they dumped him..They said to ridge to name a price then get out!!..

            ROFL

              Avatar
              Milwaukee, WI
              United States
              Member #3131
              December 27, 2003
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              Posted: August 23, 2010, 12:30 pm - IP Logged

              I will invest no matter how much I win.

              So  my vote was discarded.

              You almost have to invest no matter what you win.

              Unless you plan to bury $5,000,000 in mason jars like Lucius Clay......

              How many mason jars would it take to bury 500,000 $100 bills? ($50,000,000)

              Bigger bills are out of circulation now.

              MarkP

                savagegoose's avatar - ProfilePho
                adelaide sa
                Australia
                Member #37136
                April 11, 2006
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                Posted: August 23, 2010, 12:37 pm - IP Logged

                i just ussed a yahoo finace  website to calculate how much jackpot i need to win to live compfrtably till im 85

                errrmmmm itsa a pension calculator, but i put in i retire next  year and then it works out the numbers ill post a link

                 

                 

                way to work it is put in under current income your desired anual fund you need to live off of ,

                at the income replacement at retirement put in 100% so you basically get 100% of said anual income you wanted in earloier question

                it says i need $1172239 to retire on $50k a year adjusted for %3 infaltion , and a %6 return on investment,

                http://finance.yahoo.com/calculator/retirement/ret02

                 

                but now i read the actual question without investing,onlyneed
                $3883165

                 

                 

                seems to work for 40 years , so you aree broke at 60 if u win at 20 yo.mine says im broke at 85, so if i win 1.1 mill i better not live till 100

                2014 winnings

                JAN -$48.50;  FEB  -$77.5; MAR -$18.05;  APR -$96.05 MAY -$61.10; JUN $-85;

                  OwlCreekBridge's avatar - Lottery-031.jpg
                  lottoville
                  United States
                  Member #95476
                  August 11, 2010
                  132 Posts
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                  Posted: August 23, 2010, 1:08 pm - IP Logged

                  So I made an Interest Analysis in Excel showing how much interest I will earn at different APRs and different initial deposits. Then I thought about how much money I would need to live off of without ever having to work or earn interest from investing.

                  Think of the tax benefits of not investing. You would only have to pay income tax for the initial winnings for the year you win in and nothing else after that because you won't be working or have any kind of earnings.

                  It would need to be a large amount to do it but how much would YOU need?

                  The advertised jackpot would have to be at least 18 million for me. I'd take the lump sum about 12 million and after taxes, I'd probably get to keep 6 million. Which would be just about enough for me to live off of barring some hyperinflation/currency crisis scenario.

                  I know before the lotto commission even writes me a check, 25 percent will be immediately taken out for federal withholding, I live in a state where winnings aren't taxed but I bet when I file in April the government will want even more in taxes. I think if people take the lump sum they ought to cut the amount in half to get an idea of how much they'll actually get to keep. If there are any tax experts on here correct me if I'm wrong.

                    johngreek's avatar - Lottery-023.jpg
                    Patras,Achaia,Greece
                    Greece
                    Member #91331
                    May 15, 2010
                    42 Posts
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                    Posted: August 23, 2010, 1:17 pm - IP Logged

                    8,5 million euros

                      Avatar
                      New Member
                      oakland, ca
                      United States
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                      August 17, 2010
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                      Posted: August 23, 2010, 1:26 pm - IP Logged

                      12 million after taxes?  i don't know the exact math but after penalty for cash payout and taxes, seems like lottery winners walk with about a third of the jackpot.  so, to take home 12, you'd have to win 36 mill.

                        Avatar
                        CA
                        United States
                        Member #84266
                        December 26, 2009
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                        Posted: August 23, 2010, 2:03 pm - IP Logged

                        One should consider how much you will have after you file your income tax the following year in April.

                        Cash Value- 25% Federal Tax- State Tax (if applicable)- 35% income tax.

                        If anyone wants the interest analysis just PM me your email address.

                          Avatar
                          CA
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                          Member #84266
                          December 26, 2009
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                          Posted: August 23, 2010, 2:11 pm - IP Logged

                          If I want to have $150,000/yr. for the next 80 years I would need about $12 million net.

                            OwlCreekBridge's avatar - Lottery-031.jpg
                            lottoville
                            United States
                            Member #95476
                            August 11, 2010
                            132 Posts
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                            Posted: August 23, 2010, 2:39 pm - IP Logged

                            One should consider how much you will have after you file your income tax the following year in April.

                            Cash Value- 25% Federal Tax- State Tax (if applicable)- 35% income tax.

                            If anyone wants the interest analysis just PM me your email address.

                            so a ca resident like you will have to pay 55% in taxes? that sucks, it's not like the government paid for half the ticket

                              HoLeeKau's avatar - YheaShea
                              Boise, ID
                              United States
                              Member #94285
                              July 17, 2010
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                              Posted: August 23, 2010, 9:46 pm - IP Logged

                              so a ca resident like you will have to pay 55% in taxes? that sucks, it's not like the government paid for half the ticket

                              California doesn't have lottery tax, so you'd just have to pay the federal taxes.  The federal max is like 38% or so, isn't it?  Still bad, but not 55%.