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Review: Vultures feast on desperate lottery winners

Topic closed. 16 replies. Last post 9 years ago by tnlotto1.

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NY
United States
Member #23835
October 16, 2005
3475 Posts
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Posted: September 28, 2007, 1:18 am - IP Logged

Let's do the math here. That company settled an $8M or $9M annuity for slightly less than $2M. If the winners had taken the lump sum to begin with, they would have gotten about $4M-$4.5M before taxes, about $3M after. The winners just got legally scammed for about a mil.

As Ed's post notes, nobody got scammed. If somebody offers you $10 for something that may be worth $15 or $20 the options are  yes and no thanks, and it's your choice which one to choose.  As far as how much they may have lost, the payment is taxable income, so in your example it's the difference between about 2.6 to 2.9 million and 1.3 million, based just on federal taxes of 35%.

    tnlotto1's avatar - logo
    nashville
    United States
    Member #49896
    February 18, 2007
    1181 Posts
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    Posted: September 28, 2007, 1:25 am - IP Logged

    welcome  to LP Ed and good luck with your book sales Banana