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Lottery Winner's Plans? Paying the Bills

Topic closed. 51 replies. Last post 7 years ago by dk1421.

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Nevada
United States
Member #26473
November 18, 2005
6 Posts
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Posted: April 23, 2010, 4:50 pm - IP Logged

Congratulations and the very best wishes to the winner!

That being said, I must protest the recommendations of many on this board that he take the annuity.  While that might seem the "safe" option, particularly for the financially unsophisticated, in truth, it is a guaranteed loser.

As you may remember, the annuity option is the present value of the prize invested in a "ladder" of dollar denominated US Treasury Securities.  At the moment, the Dollar is doing relatively well, but that's because the Euro is in bigger trouble.  As we speak, the Swiss Central Bank is pulling every trick in the book to keep the Swiss Franc from sky rocketing against every other currency outside of Asia.  They will ultimately fail.

At the same time our biggest creditors, as in the Chinese, are cycling their holdings in US Treasuries into shorter and shorter maturities.  The only reason they don't dump dollars is thay need our markets for their export economy.

Our path to unsustainable public debt which can never be really paid off can only result in the fall of both the dollar and treasuries.

This colossal house of cards will eventually collapse and it won't twenty-nine years to do it.

Mr. Shaw needs to retain the best tax attorney he can find as soon as possible.  From there, he needs to assemble a team of advisors.  Most importantly, he needs to educate himself on matters financial.  It's not easy, but it's not rocket science.  The web is a good place to start.

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    Norfolk,VA
    United States
    Member #83225
    December 2, 2009
    757 Posts
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    Posted: April 23, 2010, 4:52 pm - IP Logged

    I'm with you all the way on this.

    (1) He is young

    (2) He has young children, should something happen to him they can continue to get the money for the remainder of the annuity period.

    Here's one dad that does'nt have to worry about saving up for college.

    I Agree!

    #2 is a very very good point

    ''YOU CAN PAY FOR SCHOOL BUT, YOU CAN'T BUY CLASS''Thumbs Up

      tiggs95's avatar - Lottery-036.jpg

      United States
      Member #47420
      November 4, 2006
      3930 Posts
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      Posted: April 23, 2010, 5:00 pm - IP Logged

      He looks like a nice kid. You can't help but wish him the best.

      I just hope he gets the kind of advice he needs.

      I just know I'd probably be kind of dumb with that much money at his age.

      (Truth be told, I'd still be kinda dumb with that much money at this age too but it'd be on purpose).

      When your young you take the annuity and when your old and feeble like ridge runner here is you take the cash option and spend it before you die..Good luck ridge..

        taxijohn's avatar - odometer444
        Dutchess County, New York
        United States
        Member #8067
        October 22, 2004
        3239 Posts
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        Posted: April 23, 2010, 5:53 pm - IP Logged

        Thank GOD. Someone who's name I can pronounce won. Good Job Buddy!

        GOD is great, beer is good and people are crazy! Crazy

        "I don't look for the numbers, the numbers look for and sometimes find me..."

          joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

          United States
          Member #32537
          February 12, 2006
          698 Posts
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          Posted: April 23, 2010, 6:16 pm - IP Logged

          hmm,how to put a "nice" spin on it

          he has small army of kids take care of 5 total

          ,  3 of hes own blood, and 2 of hes current GF's

           

          so thats 5 kids getting whatever they want am guesting,good for them, enjoy their childhood

          and  maybe one a super genius in waiting about to get all the education money they ever need to bring their talents out

           

          now,  if he don't take the cash with the current state of the US and the world, he be a loser i think at the end of it

          no one in their right mind buying long term us treasury bills, 

          its just not being Done by Smart folks, who can clearly see we will Crush and burn thx to all this govt spending/debt/wastefulness

          , its just a matter of When it all blow up in our face's  ,

          i mean the fed reserve is buying long term treasury bills for christs sake

          thats like writeing your self a check when you have o money in the bank to cover the check

          in other words

          its a big govt scam to fund it self

          we can't do what the us govt is doing, we be arrested for check fuard

          anyone who thinks we have a stable longterm currency , is out of their bloody mind

          so take the cash and run the hell away form the usd as fast as he bloody can in solid investments that is anything but our currency longterm

          its backed by the full faith and credit of  us govt, atm their a group of idiotic fools, cant trust them with your future

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            United States
            Member #90201
            April 23, 2010
            2 Posts
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            Posted: April 23, 2010, 6:47 pm - IP Logged

            I'm 57 and if I ever win I'm going annuity-and make a will so my kids get the rest when I die. I think cash value is a bad choice especailly the way the economy is right now.

              Avatar
              MI
              United States
              Member #84151
              December 23, 2009
              22 Posts
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              Posted: April 23, 2010, 8:53 pm - IP Logged

              So....there's been no mention if it was an "Easy pic , or He plays the same numbers weekly ??...?? (Good for you, & congrads Mr. Winner) !

              and, Why does it take up to 2 days for the Lottery to verify if the ticket is in fact the winning one or not? (as stated in the 1st post announcing a winner).

              So out of the $258.M How much is the fellow actually gonna end up with (assume he takes the cash option)?? Like less than a 3rd maybe?? I think I'd actually be angry that "they" took so much of MY winnings!!!! (haha)..

              have fun all & lets buy a ton of tickets & build'er up again !!See Ya!

                luckyshoes's avatar - butterfly neg.jpg
                Pennsylvania
                United States
                Member #79502
                September 2, 2009
                6395 Posts
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                Posted: April 23, 2010, 9:26 pm - IP Logged

                Im happy for the guy. I hope he gets good advice.  But one thing,..... wouldnt it have been nice for 100

                people to win instead of just one?

                  rcbbuckeye's avatar - Lottery-043.jpg
                  Texas
                  United States
                  Member #55889
                  October 23, 2007
                  5592 Posts
                  Offline
                  Posted: April 24, 2010, 12:14 am - IP Logged

                  As much as I wanted to win, I always feel good when someone who REALLY needs the money wins. I was amazed that he was carrying that ticket around like a piece of scrap paper. I kept thinking the wind was going to blow it out of his hand. LOL.

                  Congrats to him and I hope he spends the money wisely.

                  CAN'T WIN IF YOU'RE NOT IN

                  A DOLLAR AND A DREAM (OR $2)

                    THRUST's avatar - f35l

                    United States
                    Member #88435
                    March 16, 2010
                    397 Posts
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                    Posted: April 24, 2010, 1:07 am - IP Logged

                    Im happy for the guy. I hope he gets good advice.  But one thing,..... wouldnt it have been nice for 100

                    people to win instead of just one?

                    Yes that would be nice...and I would hope to be one of the 100. LOL

                    $1,000,000

                      TheGameGrl's avatar - character catafly.jpg
                      A long and winding road
                      United States
                      Member #17084
                      June 10, 2005
                      4525 Posts
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                      Posted: April 24, 2010, 1:18 am - IP Logged

                      So pleased it was a one person winner!!! Best they get the entire cake then the crumbs left...

                      May he realize after Uncle Sam and his child support increase, his winnings will deplete quickly. Invest in life....the money will follow.

                      Glad we got a family man winner! In these tough times he sounds like a decent chap.

                      ~~Is it true, Is it kind,Is it necessary. ~~~

                       Thanks be to the giving numbers: 1621,912,119 02014


                        United States
                        Member #63273
                        July 24, 2008
                        24 Posts
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                        Posted: April 24, 2010, 2:13 am - IP Logged

                        Congratulations and the very best wishes to the winner!

                        That being said, I must protest the recommendations of many on this board that he take the annuity.  While that might seem the "safe" option, particularly for the financially unsophisticated, in truth, it is a guaranteed loser.

                        As you may remember, the annuity option is the present value of the prize invested in a "ladder" of dollar denominated US Treasury Securities.  At the moment, the Dollar is doing relatively well, but that's because the Euro is in bigger trouble.  As we speak, the Swiss Central Bank is pulling every trick in the book to keep the Swiss Franc from sky rocketing against every other currency outside of Asia.  They will ultimately fail.

                        At the same time our biggest creditors, as in the Chinese, are cycling their holdings in US Treasuries into shorter and shorter maturities.  The only reason they don't dump dollars is thay need our markets for their export economy.

                        Our path to unsustainable public debt which can never be really paid off can only result in the fall of both the dollar and treasuries.

                        This colossal house of cards will eventually collapse and it won't twenty-nine years to do it.

                        Mr. Shaw needs to retain the best tax attorney he can find as soon as possible.  From there, he needs to assemble a team of advisors.  Most importantly, he needs to educate himself on matters financial.  It's not easy, but it's not rocket science.  The web is a good place to start.

                        Curious---assuming your scenario comes to fruition, doesn't that mean the 'dollar' becomes virtually worthless, whether it's 'dollars' coming to you every year from an annuity for 30 years or 'dollars' already paid out to you with a cash option?

                        I mean, either way...aren't we all basically screwed if our 'dollars'...no matter how many of them we have or the time frame we collect them in, are worthless when 'the colossal house of cards' collapse based on our foreign debt?

                        So what's the difference if and when all this happens if someone takes the cash option or annuity in a big lotto win now?

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                          United States
                          Member #10720
                          January 23, 2005
                          933 Posts
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                          Posted: April 24, 2010, 7:22 am - IP Logged

                          He could put in gold teeth now.
                          For the rest of us, too bad O'bama Care doesn't? cover Dental.
                          Wait 'till I win, the things I will be mocked for, my perpetual bad hair day,
                            and the shirt that says "Feeling Lucky?"

                            dopey7719's avatar - Lottery-049.jpg
                            Midlands, SC
                            United States
                            Member #69698
                            January 14, 2009
                            303 Posts
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                            Posted: April 24, 2010, 7:46 am - IP Logged

                            Dude DEFINITELY needs to take the annuity option.  That's the safest bet for him at his age.  Plus, maybe it will keep the vultures back a little bit knowing he doesn’t have it all at once. I would do it that way being as that I'm just a couple of years older than him and am in the same financial situation...but that's because I've learned things the hard way. 

                            Having come into a very small sum of money (compared to his) in the past and having family & friends come at me to "borrow" some...it's just not worth the headache.  You give and give and give....and then there's nothing left for you in the end.  Meanwhile, of course no one ever pays you back. 

                            I didn't understand investments, etc and I definitely didn't know how to say NO!  If I'm ever blessed again with a large sum of cash I'm talking to an accountant first and an attorney 2nd. He seems like a sweet guy…that will want to please EVERYONE. I hope the lottery curse doesn’t claim him.

                              gmalady's avatar - animal butterfly.jpg
                              atlanta,georgia
                              United States
                              Member #75082
                              May 26, 2009
                              62 Posts
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                              Posted: April 24, 2010, 9:16 am - IP Logged

                              I am happy for the young man. He should be able to afford a consultant on the best option for him and how to save, distribute, and invest his money. On another note, I thought you could not sell yourself a ticket in the store or is that in certain states with certain games or is it just store policy. I have heard so many scam stories about these clerk selling themselves tickets and when to buy them. I also found out through a store clerk that when you request a Quick Pick that you can tell them not to request the first Quick Pick that comes up. That you can request the 50th set of numbers or what number you decide the machine to print. Has  LP members had a clerk to tell you that?