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Rumors of minor’s lottery buy unfounded

Topic closed. 39 replies. Last post 11 years ago by fja.

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fja's avatar - gnome1

United States
Member #91
January 19, 2002
12015 Posts
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Posted: November 4, 2005, 9:42 am - IP Logged

Why won't the winner come forward and get the $$$ ?

99% of us would have by now- make that 100% !

DD

Rule of thumb, if you win big seek financial help.  if he won, and followed the rule, then it could be that the financial suggestion of the day would be to wait until 2006 to collect.  that way you will have time to scatter your investments around.  If you collect now then you got about 7 weeks to make decisions that need reserach and disscussion, Before Uncle Sam starts playing his favorite Beatle song.  (TAXMAN)  He was probably ready to to do the publicity circut runs...(so that we may all pass judgement on him, like we do anybody else that is in the limelighT)....but was stopped short by some good advice. 

NON-WINNERS OF LOTTERY JACKPOTS NEED TO RELAX.  ONE OF US HAS MADE IT TO THE TOP OF THE HILL, AND YOU CAN'T WAIT TO SEE WHO IT IS SO THAT YOU CAN KNOCK HIM OFF.  MAYBE THEIR HAVING FUN WITH YOU!

 

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    United States
    Member #23787
    October 16, 2005
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    Posted: November 4, 2005, 2:07 pm - IP Logged

    I just do not understand why folks here are discussing tax consequences of claiming now or next year. For anyone winning even a moderate size jackpot, the tax implications are fairly simple.
    For example say you won 50M cash. The Federal tax is 50 * 0.35 = 17.5 M so you are left with 32.5 M. Lets us say your income in 2005 is zero then 17.5 M is the final tax. But if you were earning in 2005 and your income was/is say 100,000 so you pay around say 15,000 in taxes. Make it 20,000. So what is the additional tax burden ? it is just 20,000 or even if it is 50,000 what difference does it make if you have got 32.5 M and why would you wait to save 20 to 50 000 when you can get 32.5 M immediately and consider this that even if 32.5 M deposited in safest account will earn at least 5000 per day. My point is that whatever tax savings that one may be thinking is negligible in comparison to what you getting.
    The only real way for any tax savings is if you want to donate part of your winnings to some good cause and say you want to donate 50% of your winnings of 50 M then you are left with 25 M and taxes on that will be around 8.75 M and you are left with 16.25 M. You saved 8.75 M in taxes and the same money went to your good cause.
    The only reason I think folks should wait before collecting jackopt is that they are giving some time to themselves to realise their new world and assemble a team of advisors they can trust.

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      Bethesda, Maryland
      United States
      Member #16901
      June 6, 2005
      446 Posts
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      Posted: November 4, 2005, 4:09 pm - IP Logged

      NOVEMBER 4TH.........HAPPY FRIDAY EVERYONE......

      CHEWIE.....:> made a very valid point in his last statement.......Furthermore, I'm sure the entire "Syndicate" is congregating among themselves as to where they should move to, and how quickly they can move there,  to ensure at least a tablespoon worth of privacy, after they collect their prize winnings.  I think Steve & the Syndicate, has finally faced reality because even half of $340,000,000.00..is going to change their lives completely.

      I also wonder if there's possibly been any tension among the "syndicate" as to how the money should be broken down, divided and invested.

        fja's avatar - gnome1

        United States
        Member #91
        January 19, 2002
        12015 Posts
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        Posted: November 4, 2005, 4:28 pm - IP Logged

        I just do not understand why folks here are discussing tax consequences of claiming now or next year. For anyone winning even a moderate size jackpot, the tax implications are fairly simple.
        For example say you won 50M cash. The Federal tax is 50 * 0.35 = 17.5 M so you are left with 32.5 M. Lets us say your income in 2005 is zero then 17.5 M is the final tax. But if you were earning in 2005 and your income was/is say 100,000 so you pay around say 15,000 in taxes. Make it 20,000. So what is the additional tax burden ? it is just 20,000 or even if it is 50,000 what difference does it make if you have got 32.5 M and why would you wait to save 20 to 50 000 when you can get 32.5 M immediately and consider this that even if 32.5 M deposited in safest account will earn at least 5000 per day. My point is that whatever tax savings that one may be thinking is negligible in comparison to what you getting.
        The only real way for any tax savings is if you want to donate part of your winnings to some good cause and say you want to donate 50% of your winnings of 50 M then you are left with 25 M and taxes on that will be around 8.75 M and you are left with 16.25 M. You saved 8.75 M in taxes and the same money went to your good cause.
        The only reason I think folks should wait before collecting jackopt is that they are giving some time to themselves to realise their new world and assemble a team of advisors they can trust.

        Yeah you may be right , but wouldn't a team of advisors tell you that instead of paying 20, 000 or 50,000 or donating 8.75 M in good cause, you should keep that tell next year and then let it work for you before you give it up. Not that I am any math geneis, but if I had an advisor tell me to kick in that money cause its chump change and you got plenty more where that came from, I would probably not take him. 

        I know one reason why millionaires stay millionaires.  Its cause they use the money till the end, they make it work, they move it around, they find every loop whole that they can, and then and only then do they let it go. 

         

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          United States
          Member #23787
          October 16, 2005
          68 Posts
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          Posted: November 4, 2005, 5:35 pm - IP Logged

          I just do not understand why folks here are discussing tax consequences of claiming now or next year. For anyone winning even a moderate size jackpot, the tax implications are fairly simple.
          For example say you won 50M cash. The Federal tax is 50 * 0.35 = 17.5 M so you are left with 32.5 M. Lets us say your income in 2005 is zero then 17.5 M is the final tax. But if you were earning in 2005 and your income was/is say 100,000 so you pay around say 15,000 in taxes. Make it 20,000. So what is the additional tax burden ? it is just 20,000 or even if it is 50,000 what difference does it make if you have got 32.5 M and why would you wait to save 20 to 50 000 when you can get 32.5 M immediately and consider this that even if 32.5 M deposited in safest account will earn at least 5000 per day. My point is that whatever tax savings that one may be thinking is negligible in comparison to what you getting.
          The only real way for any tax savings is if you want to donate part of your winnings to some good cause and say you want to donate 50% of your winnings of 50 M then you are left with 25 M and taxes on that will be around 8.75 M and you are left with 16.25 M. You saved 8.75 M in taxes and the same money went to your good cause.
          The only reason I think folks should wait before collecting jackopt is that they are giving some time to themselves to realise their new world and assemble a team of advisors they can trust.

          Yeah you may be right , but wouldn't a team of advisors tell you that instead of paying 20, 000 or 50,000 or donating 8.75 M in good cause, you should keep that tell next year and then let it work for you before you give it up. Not that I am any math geneis, but if I had an advisor tell me to kick in that money cause its chump change and you got plenty more where that came from, I would probably not take him. 

          I know one reason why millionaires stay millionaires.  Its cause they use the money till the end, they make it work, they move it around, they find every loop whole that they can, and then and only then do they let it go. 

           

          Lol, I did not mean that to save tax one should give to charity/one's good cause. What I meant that it is very good option for people who intend to give money to charity/their good cause.
          As far as taxes are concerned for Jackpot winner, one is stuck with 35% (current rate of Federal tax for earnings beyond 200K/300K). There may be some savings here and there which I may not be aware. But my point is that there is no reason for waiting months for collecting Jackpot in another year so that one can save some tax. The amount of interest that can be earned in the safest interest say for 30 M would be around 3000 to 5000 per day. So it may not be worth (depends on how many days) to wait to save on interest and lose investment income.

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            Sparta, NJ
            United States
            Member #18331
            July 9, 2005
            1977 Posts
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            Posted: November 4, 2005, 6:17 pm - IP Logged

            I just do not understand why folks here are discussing tax consequences of claiming now or next year. For anyone winning even a moderate size jackpot, the tax implications are fairly simple.

            Yet you join in the discussion.

            Cheers

            |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

            I only trust myself - and that's a questionable choice

              Avatar

              United States
              Member #23787
              October 16, 2005
              68 Posts
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              Posted: November 4, 2005, 9:41 pm - IP Logged

              I just do not understand why folks here are discussing tax consequences of claiming now or next year. For anyone winning even a moderate size jackpot, the tax implications are fairly simple.

              Yet you join in the discussion.

              I guess you are right Chewie, I got carried away and should not have said that. Discussions are good most of the times and gives one view of the way others think about something and we learn from them sometimes.

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                Sparta, NJ
                United States
                Member #18331
                July 9, 2005
                1977 Posts
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                Posted: November 5, 2005, 7:15 am - IP Logged

                Hey, say what you want, however you want. I'd be the last to prohibit you. I was just noting the irony - of which I am guuilty of many times.

                Cheers

                |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                I only trust myself - and that's a questionable choice

                  Avatar
                  Sparta, NJ
                  United States
                  Member #18331
                  July 9, 2005
                  1977 Posts
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                  Posted: November 5, 2005, 7:24 am - IP Logged

                  I know one reason why millionaires stay millionaires.  Its cause they use the money till the end, they make it work, they move it around, they find every loop whole that they can, and then and only then do they let it go. 

                  You're right there, only the primary emphasis is on the moving it. For example, there is a newly published book out, and one of the items is how the Kennedy's hide their money. Good old, Ted "lets go for a swim" Kennedy, has $500M stashed in trust funds registered in an out of country account; forgot the island country's name.  Billionaire George "I hate Bush" Stanaros (SIC), also hides his off shore. He became an American citizen, but only has a small business here. The rest is out of country; strangely enough in countries we can't tax. The rich don't have to follow the rules.  Remember that when you win the big one.

                  Cheers

                  |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                  I only trust myself - and that's a questionable choice

                    fja's avatar - gnome1

                    United States
                    Member #91
                    January 19, 2002
                    12015 Posts
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                    Posted: November 5, 2005, 10:41 am - IP Logged

                    looks like this conversation is over........and they will be claiming the powerball prize shortly....on to the next topic of discussion.....what they say and what they do....