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Mega Millions lottery jackpot rolls to $146 million

Topic closed. 29 replies. Last post 8 years ago by spy153.

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DC81's avatar - batman39
MI
United States
Member #54830
August 31, 2007
985 Posts
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Posted: December 4, 2008, 12:44 am - IP Logged

With $60M you should be able to easily manage to get a yearly return of 5% with safe, mostly low risk investments.. Big Smile Not to mention if that 5% compounded every year or daily for 25 years could result in over 200M (that's obviously without factoring in the taxes). In the end you'd have made a lot more than what the annuity would offer at this point. Of course trusting people would be an issue but I think that could be resolved with making sure you remain involved and just not trusting them with the choices being made with your money. Taking a few courses to be more familiar with what's going on couldn't hurt either. Thumbs Up Then there's the real estate market which I'm sure is a either at now or soon to be at a good point to invest into again...

You can't predict random.

    Bagent's avatar - avatar 10424.gif
    Vancouver, WA
    United States
    Member #53665
    July 15, 2007
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    Posted: December 4, 2008, 2:00 am - IP Logged

    Actually, that's after what they withhold, not what you will owe. It's just about guaranteed you are going to owe more. My calculation shows with max tax, living in Michigan, you are going to wind up with additional taxes of almost $8.4m, leaving you just a hair under $61.6m. With a good tax planner, it only gets better.

    MaddMike, all the more reason to take the cash option.

    Anyone bought tickets yet? Quick Picks for me, single tickets, multiple locations, and $15 to spend. Hyper Bought 3 today.

    Heck, not really sure if buying a QP in Washington State is worth it anymore.  I have bought QP tickets for the last 3 drawings and have had 2 tickets that have had matching Mega Balls.  On 1 ticket of 5, I had 3 maga balls of 19 and 2 of 43 for the Friday draw of last week.  Then I got another ticket and it had 2 MB for 44 and 2 of 16.  In the years that I have been playing these games, I have never before gotten matching MB (or PB) numbers on a ticket before.

      Avatar
      Michigan
      United States
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      March 12, 2008
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      Posted: December 4, 2008, 3:47 am - IP Logged

      jarasan, I keep thinking more and more like you. $60m is an intimidating amount of money. I think the stress of trying to manage without taking huge losses would just be too much for me. And could I trust someone else to manage it? That might be as much stress as the other.

      With an annuity of $4m per year, you can live very comfortably and put money away for 26 years.  At the end of 26 years, you still have quite a bit of money and you have lived well.

      But then to come full circle, LOL, 2% interest per year on $60m is  $1.2m. That's pretty comfortable, too. Wink

      the problem with the annuity is do you trust the government to give you 4 mill a year? because i dont.

        Lotto*Love's avatar - lips
        Washington *state*
        United States
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        June 14, 2008
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        Posted: December 4, 2008, 11:40 am - IP Logged

        Heck, not really sure if buying a QP in Washington State is worth it anymore.  I have bought QP tickets for the last 3 drawings and have had 2 tickets that have had matching Mega Balls.  On 1 ticket of 5, I had 3 maga balls of 19 and 2 of 43 for the Friday draw of last week.  Then I got another ticket and it had 2 MB for 44 and 2 of 16.  In the years that I have been playing these games, I have never before gotten matching MB (or PB) numbers on a ticket before.

        I feel the same way anymore.  When I buy QP's I get repeats on the lines, mega ball included.  Or I just get horrible numbers.....well.......not horrible, but I squirm when I see a line with say 36 and higher in white balls.

         

        But, the repeat mega ball worked in my favor once.  I think I paid about $3 for a qp where 2 of the 3 lines had a 5 for a mega ball.  The mega ball that dropped that night was of course, a 5 plus I had one correct  white ball on those lines  so I walked away with like a $3 profit! lol Nothing to smile about I know, but..if you knew the luck I've been having on ANY lottery game..$3 is big lol.

        At any rate.....I'm sure the MM will be won by someone before Christmas....and what a present it will be!  Lucky dogs don't even know whats in store!  Could be me lol.........ya right.Big Grin Santa

        Surrender You can run, but you can't hide mighty Jackpot...surrender to me at once!

          Think's avatar - lightbulb
          Marquette, MI
          United States
          Member #20541
          August 20, 2005
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          Posted: December 4, 2008, 11:46 am - IP Logged

          Actually, no, it's not wrong. Using the moneychimp tax calculator, take 98,800,000 less MI tax of 4.35% and you have a net fed taxable of $94,693,500 - plug your number in, assume single, 2008 calculator (2009 published tax brackets are pretty much the same), you get fed tax of $33,121,322, leaving you with a nice chunk of change at $61,572,178 - give or take. This doesn't take into account your personal deductions, but at $61m, that's chump change.

          Don't forget that the USA Mega calculation is calculated with only the minimum required witholding of 25% federal.

          It isn't rocket surgery here.   To ballpark the net you just take the current maximum fed rate (.35) the current  maximum state rate (.0435 for Michigan...your state may not tax lottery winnings)

          and the current maximum local rate if you have one (.01 in Michigan)

           

          So, .35+.0435= .3935 +.01 = .4035

          1-.3935 = .6065 (no local tax)

          1-.4035 =.5965 (highest local tax)

          98,800,000 * .6065 = 59,922,200

          98,800,000 * .5965 =58,934,200

          Under the current tax structure if you have no income you can add about 23,000 to that in Michigan (because of the different brackets).

          That is how you ballpark the starting point.  Your figures will be different but this is how you start.

          I also deduct from my ballpark a certain amount to pay someone else to figure it outSmile

          Now, working on the win is the hard part!

            Think's avatar - lightbulb
            Marquette, MI
            United States
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            August 20, 2005
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            Posted: December 4, 2008, 11:55 am - IP Logged

            Just think how good it will feel to contribute $33M to help out the Feds bail more money. Yipppeeeeeeeee!  Sometimes I think the annuity may be better just for the fact that you pay taxes in smaller payments and have some time to "get used to" having that much money.   You may be able to learn, manage, and invest those annual payments over time to negate the massive "lump tax payment".  You can always sell the annuity if you change your mind.

            I certainly could do just fine with $4M a year, invested properly, your returns could retrieve the tax losses.

            Your'e kidding right?  You would really take it all and put it on red wouldn't you ?Big Smile

              Piaceri's avatar - sarsony1
              Republic of Texas
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              Posted: December 4, 2008, 1:29 pm - IP Logged

              the problem with the annuity is do you trust the government to give you 4 mill a year? because i dont.

              All those who trust the government, RAISE YOUR HANDS!!!      See Ya!

               

              ....chirp....

               

              ....chirp....

               

               

              Thud

               Guess that makes it unanimous.....US Flag   AND THE NUMBER ONE REASON TO TAKE THE CASH AND RUN!!!!!

              face

              singlewinnersinglewinnersinglewinner   

                Avatar
                NY
                United States
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                October 16, 2005
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                Posted: December 4, 2008, 1:53 pm - IP Logged

                Thats under the tax laws that are in effect now.After January 20th,the dems will be in a position to change the tax laws.Obama campaigned on redistributing the wealth.Translation:Steal from the rich and give to the poor.This clown actually thinks he's Robin Hood!

                It's not nearly as simple as your marginal tax rate. Bush obviously isn't a tax and spend democrat, but when it comes to financehe isn't a conservative ,either. His policyhas been to borrow and spend.

                You may think you got a break because of Bush's tax cuts, but most people didn't, even if their tax bill went down a few bucks. In the 8 years Bush has been in office the national debt has increased by about 5 trillion dollars. That's an average of $2050 for every single person in the country for each of those 8 years. If you're married, and don't have kids your annual household share is $4100. Median household income in 2006 was just under 50 grand, so median taxable income was roughly 40 grand, which would put you in the 15% tax bracket. Half of the households in the country could pay an extra 10% on every dime of taxable income and still save at least $100, compared to the increase in thier share of the national debt.

                Making minimum payments on your credit cards or taking a longer car loan to reduce monthly payments may sometimes make sense to reduce your cash flow and make money available for other needs, but in the end you pay more because your interest payments are higher. With the collective power of 305 million people it's inexcusable that the country would take out loans to pay routine expenses. As with personal credit cards, the only way to really get ahead is toreduce your spending relative to your income. If you want to see howthat has worked on a national level there's a graph of national debt asa percentage of GDP here: http://zfacts.com/p/318.html 

                If I'm the lucky one who wins the next MM jackpot I'd happily pay the extra 3.6% increase that may return to the top bracket if I was sure that money would go towards reducing the deficit (and therefore my debt). In the long run I'd be better off, because I wouldn't be paying as much interest for the rest of my life.

                  Avatar
                  NY
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                  Posted: December 4, 2008, 1:57 pm - IP Logged

                  Even if you win the lottery another 10 percent of taxes is still alot.

                  It's not another 10%. It's the other 10%, which is different. You owe the taxes once you win, but for a big win they don't withhold as much as you're (almost certainly) going to owe. As pointed out elsewhere, if you win a jackpot you can expect to pay the highest tax rate on almost all of it. It's just a matter of when you pay it.

                    spy153's avatar - maren

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                    Posted: December 4, 2008, 2:48 pm - IP Logged

                    You guys are seriously arguing over the taxes?  Who cares?  I just want the jackpot., and big fat "wahh" if I got to pay taxes on it. 

                    voir-vous dans mes reves!Cool


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                      Posted: December 4, 2008, 4:46 pm - IP Logged

                      You guys are seriously arguing over the taxes?  Who cares?  I just want the jackpot., and big fat "wahh" if I got to pay taxes on it. 

                      I Agree! I actually don't mind paying taxes.I just don't like how my tax dollars are being spent...by either party!

                        RJOh's avatar - chipmunk
                        mid-Ohio
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                        March 24, 2001
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                        Posted: December 4, 2008, 7:45 pm - IP Logged

                        You guys are seriously arguing over the taxes?  Who cares?  I just want the jackpot., and big fat "wahh" if I got to pay taxes on it. 

                        Hopefully, you or one of the other LP members will actually win a lottery jackpot one of these days and then we can have a real argument about paying lottery taxes rather then these fantasy arguments.  Probably if it ever does happen, the last thing the winner will have their mind is coming to LP to argue about paying taxes.

                         * you don't need to buy more tickets, just buy a winning ticket * 
                           
                                     Evil Looking       

                          time*treat's avatar - radar

                          United States
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                          March 30, 2005
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                          Posted: December 4, 2008, 8:35 pm - IP Logged

                          All those who trust the government, RAISE YOUR HANDS!!!      See Ya!

                           

                          ....chirp....

                           

                          ....chirp....

                           

                           

                          Thud

                           Guess that makes it unanimous.....US Flag   AND THE NUMBER ONE REASON TO TAKE THE CASH AND RUN!!!!!

                          Ok, I haven't laughed like that all day...Green laughGreen laughGreen laugh

                          In neo-conned Amerika, bank robs you.
                          Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                            Avatar
                            CT
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                            June 23, 2008
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                            Posted: December 5, 2008, 8:43 am - IP Logged

                            I Agree! I actually don't mind paying taxes.I just don't like how my tax dollars are being spent...by either party!

                            I couldn't agree with you more, Mike.  It is too bad Al Gore and Goerge Bush played the role of spoiler in in the 2000 election.  Ralph Nader would have made a good president.  A hell of a lot better than any of the Republicrats(Democrats and Republicans combined) anyway.

                            SC

                              spy153's avatar - maren

                              United States
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                              Posted: December 5, 2008, 9:51 am - IP Logged

                              Hopefully, you or one of the other LP members will actually win a lottery jackpot one of these days and then we can have a real argument about paying lottery taxes rather then these fantasy arguments.  Probably if it ever does happen, the last thing the winner will have their mind is coming to LP to argue about paying taxes.

                              Thank you RJOh!  I don't think anyone who wins will be coming here to wine about the taxes.  Maybe to tell Todd, so he can know.  Some may even give a hollar out to LP members during a press conference.  (Whoa!  Talk about the traffic here then!)  But taxes?  Nah.  Not me anyway. 

                              voir-vous dans mes reves!Cool