Welcome Guest
Log In | Register )
You last visited December 5, 2016, 1:37 pm
All times shown are
Eastern Time (GMT-5:00)

POWERBALL CREATES WORLD'S FIRST BILLION-DOLLAR JACKPOT

Topic closed. 567 replies. Last post 11 months ago by AbsolutelyFun.

Page 10 of 38
4.97
PrintE-mailLink
Avatar

United States
Member #171275
January 5, 2016
105 Posts
Offline
Posted: January 10, 2016, 7:47 am - IP Logged

Federal tax rate isn't 25%, but rather much as 39.6%. Depending on what account maneuvers the winner is able to take, the actual amount could be low as $800 million or so. Still a bundle of money, but $800 million paid over 30 years isn't overly compelling when compared to $500 million after tax lump-sum.

The main advantage of an annuity is reducing tax liability, but when the numbers are as large as those you posted, it makes no meaningful difference. Many feel it's best to take all the cash now than hoping inflation stays under control and tax rates don't change. And it's not just Federal rates one has to be concerned about, but also state and local taxes, which can change / be added. For example, for a brief time, New Hampshire enacted a 10% surtax on lottery winnings, which also applied to past winnings being paid out in annuities.

In short, the reward verses risk isn't worth it these days for annuity, and is why most large jackpot winners opt for the cash option straight away.

Yes Ron5995, you are right on the money!  Thanks for pointing that out to those out there who are assuming incorrectly.  I'd hate to see someone win and then end up regretting making the wrong choice.

    Guru101's avatar - rw6jhh
    Indiana
    United States
    Member #48725
    January 7, 2007
    1953 Posts
    Offline
    Posted: January 10, 2016, 7:49 am - IP Logged

    Looks I'm looking at $459,420,000 after taxes on Wednesday!Big Grin

    Gonna win.Big Smile

      sirbrad's avatar - Lottery-062.jpg
      PA
      United States
      Member #22983
      October 6, 2005
      2226 Posts
      Offline
      Posted: January 10, 2016, 7:54 am - IP Logged

      When has America or anywhere else ever been 100% "safe"? I think for the most part people are just very self-centered and paranoid. Those who have issues are in the minority, you only hear about them because they are extreme cases and that is what makes news. All of those who won big that have had no issues are considered "boring" and not newsworthy. Nothing will stop me from living my dream. You can't let your "perceived fear" of what you "think" might happen stop you....Anyone who is that worried and thinks that they cannot handle it, and that the world will then be after them 24/7 for the rest of their lives should not even bother playing. No one is going to force me to go into hiding. If you can't take the heat stay out of the lottery kitchen and let us who are prepared to live out our dreams play and win it. Or build yourself a "lottery bunker" and hide in it for the rest of your life. Doesn't sound like much fun though.
      I may be wrong but are you saying that people shouldn't play just because they don't understand something?
      My statement wasn't because I'm afraid. It is because some people don't comprehend the seriousness of the situation and will carelessly run around without thought of evil minds around them, be that family, friends, workers, or strangers. People have killed for a lot less. If your not aware then you cannot see the importance of protecting yourself. I mention it so hopefully a winner (maybe even a friend or family member) will come to this site and read this and think of something they may have not have thought of before. Perhaps it may make them a little more cautious. It may save a life or even change a life.
      Are you one that would just go spend money carelessly, not aware of how desperate some people get especially if they precieve something bad has happened to them, and then they think it is because of you, "the lottery winner?"
      Beware! Sometimes no matter how many warnings a person is given, they still don't realize or prepare for the dangers that are around them. Heck sometimes people just completely deny the issues or ignore them until it is painfully in their face. Some people feel as though they are invincible even though in reality they are less invincible because they missed a tiny (or major) detail.
      Hey I say, spread the word! Help educate everyone who might not think things all the way through. After all your best thinking misinterpreted my message and you thought you were so right. Is it so far fetched to think someone might be so wildly excited about winning the lottery that they can't think straight enough to stay safe and even extend that safety to family and friends before it is too late?

      I am saying I have been well prepared for a long time, and even for those not well prepared the odds are slim that someone is going to come after them. There are far more successful stories and non-issues than there are destructive ones, the media only glorifies the bad ones. Most of those had problems long before the lottery. I also have never heard of anyone coming after a lottery winner from another country. The reality is that people on here think and worry about all stuff more than average people out there do. This site is hardcore lottery players, most are casual players. The people on here seen it all and focus on the bad stories when most people out there are not even aware of any of it. They move on with their lives and forget about it after a week. It is good to be prepared but it is stupid to become obsessed and over-paranoid and let it ruin your life. As I said you may as well not even play then if you are worried that every bad person will come out of the woodwork after you. Unless you are complete idiot who flaunts it every where they go chances are you will be fine. The world is not going to stop and hunt you down because you won the lottery. Not most of the time anyway if you are at least somewhat intelligent and know how to handle it.

        sirbrad's avatar - Lottery-062.jpg
        PA
        United States
        Member #22983
        October 6, 2005
        2226 Posts
        Offline
        Posted: January 10, 2016, 7:58 am - IP Logged

        You want to know the approximate amount you will take home based on the Cash Option now (just want to make sure we're on the same page)

         

        First of all, you don't know if you are going to be the ONLY winner. With large jackpots (and sometimes but rarely smaller jackpots) there are multiple winners.  A good example would be Marie Holmes who was one of three winners of a jackpot over $500 million.

         

        Next, you haven't provided enough information to get an the approximate amount you asked for.  Do you live in a state that has no lottery tax?  Some states tax you on your lottery winnings and others don't.  It varies from Zero to a state like New York where it's 8.82% (that's getting close to 10% of your Cash Option) Look at the left side of this webpage.  Look for USA MEGA, click on that then look at the bottom left under Powerball and click on Jackpot Analysis then scroll down to see what your tax rate is for your state.

         

        Next you gotta pay Uncle Sam his due. 39.6% is his take. That's 39.6% of your Cash Option. Yeah it can be reduced somewhat but that all depends on whether you get help from your CPA who knows what you can and cannot do to reduce that amount. The lottery will automatically take out 25% BEFORE they transfer your money to your bank. You are responsible to pay Uncle Sam the remaining taxes due.  When you go to USA MEGA and look at the Jackpot Analysis for the Wednesday's drawing you will see that they figure out how much you will get based on taking out the 25%. Therefore that number you will get is incorrect.  You will end up with less.

         

        The current Cash Option is $806 Million.  Assuming you are the only one who wins, do the math and you will see that you will walk with roughly half of that assuming you are the sole winner.  Makes sense because if you add 39.6 plus 8.82 you get almost 50%.  If you live in a state with no taxes then good for you!   $806M less 39.6% is $486.82M  For example: $806M times 8.82% is substantial, just over $71 million that goes to New York State. Use a spreadsheet program if you want to mess around with the numbers and do "What If" scenarios. 

        Uncle Sam is the biggest crook in history, every time someone wins and beats the odds he steals 36% and didn't even have to pay a dime to play. I would love to see his bank account balance. I am guessing a few warehouses of double stacked pallets like this? (Trillion dollars) LOL

         

          Erzulieredeyes's avatar - spider miss.png
          Painesville, Ohio
          United States
          Member #117718
          October 12, 2011
          215 Posts
          Offline
          Posted: January 10, 2016, 8:07 am - IP Logged

          Now you are really going to see ticket sales explode. Going to be at least $1.5 billion by drawing.

          Wouldn't be surprised if it reaches 2 billion by Wednesday. I'm ready for this hit already, lost all $60 no return at all...lol Now I'm only playing $20 unless it gets over $1.8 or 2 B then I'll fork down $100

            Avatar

            United States
            Member #171275
            January 5, 2016
            105 Posts
            Offline
            Posted: January 10, 2016, 8:09 am - IP Logged

            Uncle Sam is the biggest crook in history, every time someone wins and beats the odds he steals 36% and didn't even have to pay a dime to play. I would love to see his bank account balance. I am guessing a few warehouses of double stacked pallets like this? (Trillion dollars) LOL

             

            That is the beauty of living in the USA, you have to put up with Uncle Sam!  For the most part living anywhere else is unthinkable. Do you have any idea how many people would give their left arm to live here? So many people want to live in the USA it's not even funny. Why? Because we have the lottery of course.....but really it's because our country is a free country compared to the crappy countries some people live in.  I have spoken to many people from all around the world and a lot of them would prefer to live here granted there are a lot of Europeans who think their country is the best in the world and it is if you don't mind the cold weather.  Yeah the Europeans have some things going for them and in fact I was reading that London is supposedly the number one country to live in.  Yeah that's way too cold for me. I like where I am and I like that although we get killed on taxes to some degree we still live in one of the greatest countries on the planet if not the best country.  When I compare the good to the bad the good far outweighs the bad. So hey every one is entitled to their opinion but if you feel that Uncle Sam is a crook that's cool with me. By the way, you gonna need a number of bank safes for all that money.

              mamamary517's avatar - Lottery-024.jpg
              Brooklyn, NY
              United States
              Member #115853
              August 29, 2011
              71 Posts
              Offline
              Posted: January 10, 2016, 8:30 am - IP Logged

              Thanks Todd for being there for us last night,  Lottery Post was the only site I was able to log onto to get the PB numbers.  I will have to try again though for Wednesdays drawing.  May the lucky winner be me or a family member!

                BuyLow's avatar - palm tree.jpg
                Florida
                United States
                Member #61435
                May 22, 2008
                907 Posts
                Offline
                Posted: January 10, 2016, 8:47 am - IP Logged

                HOLY SH$T!!!!!!!!


                  United States
                  Member #106134
                  February 13, 2011
                  806 Posts
                  Offline
                  Posted: January 10, 2016, 8:53 am - IP Logged

                  Everyone is cursed with "can't win"! LOL

                    MADDOG10's avatar - smoke
                    Beautiful Florida
                    United States
                    Member #5709
                    July 18, 2004
                    20108 Posts
                    Offline
                    Posted: January 10, 2016, 8:57 am - IP Logged

                    LOL, Lottery Post was not built to handle jackpots greater than $1 billion.  It's showing up as $1300 million.  Guess I have some work to do! LOL

                    Oh MY, Heh,heh,heh.

                                                                 

                                                                   "  When Injustice Becomes Law, Resistance Becomes Duty "

                      GiveFive's avatar - Lottery-026.jpg
                      NY State
                      United States
                      Member #92609
                      June 10, 2010
                      3695 Posts
                      Offline
                      Posted: January 10, 2016, 9:00 am - IP Logged

                      Yesterday someone told me that 65% of all the 292 million possible combinations had been sold. (I've no idea if that's accurate or not)

                      If it's true, that says that 35% of them were unsold.  Therefore last nites's combo came from the 35% of combinations that were not sold. 

                      Two things come to my mind;  Can they/will they sell more than 65% of the possible combo's for next Wednesday nights drawing, and with a 65% chance of a combo that was sold being drawn, I doubt the jackpot will not be won next Wednesday.  G5

                      About playing the lottery --  You will lose more than you win. Until you hit a jackpot.  Then everything changes!

                        Avatar
                        Delaware
                        United States
                        Member #93503
                        July 1, 2010
                        453 Posts
                        Offline
                        Posted: January 10, 2016, 9:06 am - IP Logged

                        Hopefully someone who wins this and if there is a sole winner is in a state that they can stay anonymous.

                          Avatar
                          Louisville, KY
                          United States
                          Member #15734
                          May 20, 2005
                          203 Posts
                          Offline
                          Posted: January 10, 2016, 9:10 am - IP Logged

                          something stinks

                           

                           did anyone see the ball picker for powerball ?  iT comes up from below   the ball doesn't get knocked off by other balls hitting it which tells me it is on a vacuum then The vacuum stick disappears below the bouncing balls (completely out of site)  with the money they have at there disposal how hard would it be to pull a magic trick.  not hard at all and they made it obvious.  to add insult to injury it is computer based what this means it gets the numbers first from quick picks, aunt patty's birthday numbers etc. Then with this obvious cheat machine can get the jack pot high to sucker in me:-( the saddest part is it can make sure in a nano second only one winner wins if it likes or the puppet master likes. a computer is a god among men! ran by a man.

                          but ya I am playing! the only chance for humanity

                          If you had any idea how the Halogen machine works, you would see that your post is obviously flawed. To start, the balls are mixed by a turntable at the bottom of the machine. The shaft does not contain a vacuum inside it - it has an opening the size of one ball. As soon as the shaft goes down, gravity pulls one, and only one, ball into the shaft. The shaft rises and extracts the ball from the machine by a small stick inside the machine. This process is repeated 5 times. Not even computers can control gravity.

                          Please understand physics before posting such baloney.

                            Avatar
                            Portland, OR
                            United States
                            Member #145973
                            August 20, 2013
                            226 Posts
                            Offline
                            Posted: January 10, 2016, 9:16 am - IP Logged

                            I know the disadvantages of the annuity but most lottery winners should choose it or lose it.  Unless you are a financial adviser or have your ducks in a row in the financial area, annuity should be your only option.  Doesn't matter if you are 90 years old and you claim the annuity.  Hell are you going to do with $400 million dallas tomorrow!  Most likely make bad investments, be paranoid and stressed about it (like Jay Z beyonce's husband), choose the wrong financial planner/adviser/lawyers, etc. etc. and dig yourself an early grave.  $14,000,000+ for your first payment is a lot of dough!  With the annuity your kids can claim the other payments for the next 29 years if you died next week.  Yeah, and it is a good thing they don't get to pocket your large lump sum after you die or most likely they'll blow it all quick.

                            "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                                      Robert Greene

                              Goteki54's avatar - Lottery-007.jpg
                              Baltimore, MD
                              United States
                              Member #143332
                              May 30, 2013
                              398 Posts
                              Offline
                              Posted: January 10, 2016, 9:16 am - IP Logged

                              OK, I guess I have to get serious now and win this thing.Big Grin

                              Following the trends and patterns means following the money!Banana

                                 
                                Page 10 of 38