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POWERBALL CREATES WORLD'S FIRST BILLION-DOLLAR JACKPOT

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

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HoLeeKau's avatar - YheaShea
Idaho
United States
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July 17, 2010
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Posted: January 12, 2016, 10:44 am - IP Logged

I don't have time to figure out where I stopped reading last night, so I hope no one has posted this.  Mark Cuban's advice to the winner.

http://finance.yahoo.com/news/heres-mark-cubans-advice-winner-135430907.html

 

My favorite, and the one that so many (I'm talking about posters on non-lottery forums) fault me for and call me greedy:

 

  • Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.

    United States
    Member #108380
    March 25, 2011
    505 Posts
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    Posted: January 12, 2016, 11:11 am - IP Logged

    $800 million? Nobody will get $800 million unless you're referring to the Annuity.  If you're in a no tax state you gotta give Uncle Sam 39.6%. The current Cash Option is $868M so multiply that by .604 (60.4%) and you get $524,272,000 Million.

    So lets' get spending!

    Now assuming I want to spend my money like a madman, I would buy that beautiful home in Beverly Hills for $85,000,000 (you can see it on YouTube) I can't even imagine what the property taxes are but it must be insane. The upkeep has to be expensive too. Will need a maid and yard man at a minimum so more expenses.  Also need some seriously good insurance in case my home falls off of that hill it's on.  Still got $442.272M (actually less because of unknown expenses)

    Next buy that yacht I always wanted and since I'm rich so I'll get that Italian yacht called the Quinta Essentia at 180 foot long for a measly $41,146,434. Again I'll need a crew to both maintain the yacht and to drive it around wherever I want to go.  Also will need at least one maid/server/hostess who has to be pretty so that my friends really enjoy the cruises we go on. Oh and a first mate like they had on Gilligan's Island so minimum is the Captain, First Mate, Hostess and a maintenance crew. Dunno what that costs but I'm sure it's not cheap.  Oh and of course gotta gas her up with diesel fuel so add on the fuel expense and also the insurance on my boat in case it catches on fire or sinks or something. Now still got $398,125,566 (well actually less because of unknown expenses)

    Next gotta fill up that incredible glass garage in my $85M home with some exotic cars.  Buggati Veyron $2.8M, Ferrari's La Ferrari $1.4M Lamborghini Aventador Pirelli Edition $400K, Aston Martin Vanquish Carbon Edition $350K and a Mercedes Pullman Limo $600K

    Again, need insurance for these toys and the total is $5.55M now I got $392,620,566 (again actually less gas costs & maintenance)

    Since I am rich I will get me one of those nice global private jets, a Bombardier 850 for $32M so again huge insurance and jet fuel and maintenance plus FAA checkups.  Dunno the price on those are but it's gotta be high.  Still got $360,620,566.

    I have already spent $163,651,434 (actually more) probably closer to $200,000,000.  So that leaves me with $324,272,000.  Maybe I'd be smart to stop so that I can earn interest on that because the expenses are getting crazy and I still haven't got a wife that wants to divorce me and take half.

    Of course there are those smaller expenses that come with having the best of everything.  New cats and dogs. Love those Savannah cats so I'll get two of those,  $40,000 total.  Couple of Goldens at least $6000.  Vet bills: Unknown, Food bill negligible.

    I want the best beds money can buy, I like that Majesty VI-Spring Bed for $85K each. One for each for the bedrooms in my new $85M home.

    Oh that reminds me, a vacation home in Hawaii. Just a couple of bedroom condo will work for me.  Easily $1.5M ocean view, what else?  Add two more beds at $85K each.

    I like that Beovision 4-103 TV by B&O for $135,000.  At least a few for my new home and one for the Hawaii condo. That's over a half million.

    Also I will need at least one or more personal assistants that are trustworthy. That could really cost because I need smart people who I can trust to execute my decisions and dependable.

    So I'll stop there but when you say that no one here has the remotest  idea of what to do with $800M trust me I can spend it all if i really want to and it certainly would be fun.  Let us not forget that there are a lot of people out there who need a hand up so charity is something that if I had $800 million I'd start a Foundation to help those who are less fortunate/have special needs/our veterans who are struggling/help animals I care about and the list goes on and on and on.  It really is NOT so difficult to spend all that money, trust me as I've thought about what one can do with millions. 

    I will say that short of being a madman I'd most enjoy helping others through my foundation much like other very wealthy people do.  It's not all about you once you're THAT wealthy as your needs are being met.  It's like Eddie Murphy said in his comedy act, "making ends meet? the ends are meeting like a bleep bleep" when he was speaking of Johnny Carson being worth $300 million.

    thanks for making my point. you couldn't and wouldn't do all that obviously. the energy that you would consume trying to do all that would kill you. no, it's fun to dream and fantasize about it but you probably have trouble just getting your mail out of the mailbox every day. just 1 maid and yardman wouldn't be enough to remotely take care of your beverly hills domicile. so re-evaluate that. if the boat sinks just be sure you're not on it. also, impossible to find personal assistants you can trust. nice fantasy though.

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      Posted: January 12, 2016, 11:11 am - IP Logged

      The news anchor just said she tried to buy PB tickets yesterday , but she didn't know it was cash only and she only had credit cards. Wow!

      Dah.....which way did they go George......

      LOL

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        Portland, OR
        United States
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        August 20, 2013
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        Posted: January 12, 2016, 11:13 am - IP Logged

        $1.5B already!

        "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

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          February 15, 2015
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          Posted: January 12, 2016, 11:14 am - IP Logged

          CBS is reporting that Canadians are crossing the border to buy the PB at Niagara Falls

          Quick, someone notify Homeland Security!

            HoLeeKau's avatar - YheaShea
            Idaho
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            Posted: January 12, 2016, 11:15 am - IP Logged

            $1.5B already!

            $930 cash value!


              United States
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              March 25, 2011
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              Posted: January 12, 2016, 11:17 am - IP Logged

              I don't have time to figure out where I stopped reading last night, so I hope no one has posted this.  Mark Cuban's advice to the winner.

              http://finance.yahoo.com/news/heres-mark-cubans-advice-winner-135430907.html

               

              My favorite, and the one that so many (I'm talking about posters on non-lottery forums) fault me for and call me greedy:

               

              • Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.

              tell your friends and relatives yes. take all you want because i need help getting rid of this albatross that's hanging over my head. if you don't you will be resented or worse. what fun would that be. that advice is sound if you only won a million or so but this is an exception to that rule.

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                Portland, OR
                United States
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                August 20, 2013
                226 Posts
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                Posted: January 12, 2016, 11:18 am - IP Logged

                I don't have time to figure out where I stopped reading last night, so I hope no one has posted this.  Mark Cuban's advice to the winner.

                http://finance.yahoo.com/news/heres-mark-cubans-advice-winner-135430907.html

                 

                My favorite, and the one that so many (I'm talking about posters on non-lottery forums) fault me for and call me greedy:

                 

                • Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.

                Thanks.  He said:

                 

                • Don't take the lump sum. You don't want to blow it all in one spot.

                 

                Agree.  Annuity all the way.  Too much stress right off the bat too.

                "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

                  Groppo's avatar - cat anm.gif

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                  Posted: January 12, 2016, 11:45 am - IP Logged

                  who cares? even your own tax situation if you win doesn't matter. no one could keep track of all that money anyway. you'd have to hire a dozen people just to make sure someone isn't siphoning it off and out of those 12 people some of them will steal some of it. life would be hell if you won. you would be besieged by countless individuals and organizations 24 hours a day. when you wake up every day if you can even sleep you will be consumed by having all this money and there is no way to enjoy it. what are you going to do. buy 7 houses and 14 cars, take trips. all that will get boring quick. you say i'll take care of my family. there would be no end to that. if you try to give it away you would be constantly hounded. foolish to invest it as why would you need more money. you only live so long and whoever you invest it with will steal it anyway. think before you play more than 2.00 on this. if you say i'm only playing for 2nd prize then it makes sense. be careful what you wish for.

                  .

                  Yes sir, I had said earlier, that I am playing for only the million dollar prize!

                  But then, I saw the long post by the guy who mentioned about the 4%, and then I'm like
                  "hmmm".    I'm getting ready to reply to their post, because I have a couple of questions about the details they posted.

                  But, if I could win 1 million (2nd prize) , I'd stop my lotto participation, for good.

                   

                   

                  (careful there Grop, I guarantee you if no on hits, we'll see you here by Saturday)

                    Groppo's avatar - cat anm.gif

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                    Posted: January 12, 2016, 11:59 am - IP Logged

                    JAMORA is right in spirit. Anyone thinking about taking the annuity is falling for something we call the money illusion.

                    The 1.4 billion annuity is misleading as it doesn't exist beyond the cash amount they can pay you right now folks.

                    You need to stop thinking about “1.4 billion” and start thinking about true earnings power if you invested it by yourself.

                    All, the lottery does is take nearly the full cash jackpot and invest it into a government bond on your behalf. So the question becomes can they earn more than you in the free market?

                    The core issue is the federal interest rates are deceptively low. They can't earn jack crap for you at the moment compared to the free market. IF federal interest rates were normal and not low then we would have a true debate on our hands.

                    However, there is no debate when one option is far above the others. The cash option is kind of like how Donald Trump's polling numbers are so far above everyone else's numbers LOL.

                    You could earn far more by taking the cash jackpot. Paying the full tax bill of 39.6% on the cash jackpot and investing it all yourself in the free market. To prove my point. I walk you through it. Let us say I am the only winner.

                    868,000,000 Cash won.

                    If I was to take the annuity they would give me $21,072,009 of the cash right away to use now and invest the rest of it or "846,927,991" in case they would invest in a government bond to be paid out over the next 29 years of my life.

                    So am going to take that 846,927,991 part of the cash they would have invested in a government bond for me and do it myself.

                    First off: 846,927,991 Max fed rate of -39.6% = 511,544,506 (half a billion to invest is just absurd.)

                    Alright, so am going to invest this amount in the free market. Only the most profitable and safest stock market investments will do. (No high-risk bets allowed here folks.)

                    So am limiting my investments to say the likes of Coca-Cola - Nestle - Hershey, McDonald's - Exxon Mobil - etc.

                    Now say I will earn 4% the first year easy in dividends alone. ( 4% is very conservative) That is 20,461,780 million.

                    Now some of you will see the 2nd annuity payment amount is 22,125,610 and go: Hahahaha the annuity is earning me FAR more than you Mr. cash option guy. I would laugh right back at you annuity people. First off, my tax rate is now different to the annuity option person.

                    You're sure paying 39.6% for all the payments for next 29 payments (or whatever the rate changes too in that time period) I changed all my future rates over to the current lower rate of 23.8% max on all investment income. Yes, really your dividend income is taxed at a lower rate. Am playing the really long game here.

                    Annuity 22,125,610 -39.6% = 13,363,868
                    Cash 20,461,780 -23.8% = 15,591,876

                    Mr. Cash has over 2 million more to invest the next year.

                    Now for the really amazing part. For you see while I only got around 15m back from the corporations that year. 15m is not all true earnings from my new ownership.

                    They didn't send out all the "earnings" per share. The dividend they send out is only a part of the story.

                    They earned much more money than they sent out to you as a general rule. So they reinvested the profits back into the business on your behalf.

                    If you never sell and just hold on to really great companies. You will watch your dividend go sky high along with watching the company's total earnings go over the top in the coming decades.

                    Take a great company like Hershey: (If you love chocolate you love owning this company!)

                    Let's look back on recent history and see how the dividend paid out to owners grown over the years.

                    Let's use time jumps of 5 years...
                    What a single share paid out in total dividends that year:

                    In 1997: 0.32
                    In 2002: 0.6302
                    In 2007: 1.135
                    In 2012: 1.56

                    You see my point, right?

                    Your dividend income will go up a lot if you own best corporations and just hold on to them forever. You can't lose when owning the highest quality companies in the world.

                    Plus sense you would have never sold your "shares" in the companies. The cash keeps coming forever. There is no end date to the ownership unless you sell your ownership! The cash dividends are forever people! Hell, you could leave the stock to your grandchildren even.

                    Speaking of which, the numbers get beyond shocking when you own great companies for like 50 year plus range. (Generation wealth.)

                    Just thinking what I could turn half a billion investment into in 50 years is mind blowing.

                    It has been fun just doing the math on this jackpot size. I play the lottery for the entertainment value and this billion dollar jackpot is worth price tag of 2 bucks to dream this big.

                    P.S. When investing your money always remember "Murphy's Law" If there are two or more ways to do something, and one of those ways can result in a catastrophe, then someone will do it.

                    So don't be that complete and total moron you read about on lottery post news reports who lost everything. Avoid risk at all cost. If you can earn more than 4% the first year, but the road is with "risky" companies DON'T DO IT. The Coca-Cola Company will sure around in 30 years. Hell, Nestle has been at it for over 150 years!

                    I read you post several times. Even forward, backwards. And, I have a few questions.

                    1. Are you positively sure about all of this?
                    2. On the part where you talk about the '5 year jumps', are those figures you listed next to the years supposed to be percentages of the dividends paid, in those years?
                    3. I'm not sure I understand about 'taxed at a lower rate'.  What is supposed to be taxed at a lower rate and when?

                    I just want to be properly 'financially armed' if the unthinkable happens.

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                      New Member

                      Canada
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                      Posted: January 12, 2016, 12:04 pm - IP Logged

                      might be  war if a Canadian would win

                      Smilewe would pay IRS taxes maybe State tax then convert the money to Canadian and laugh all the way to the bank

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                        Posted: January 12, 2016, 1:29 pm - IP Logged

                        thanks for making my point. you couldn't and wouldn't do all that obviously. the energy that you would consume trying to do all that would kill you. no, it's fun to dream and fantasize about it but you probably have trouble just getting your mail out of the mailbox every day. just 1 maid and yardman wouldn't be enough to remotely take care of your beverly hills domicile. so re-evaluate that. if the boat sinks just be sure you're not on it. also, impossible to find personal assistants you can trust. nice fantasy though.

                        First of all, thanks for your prompt reply.  I believe that there are many very wealthy people out there who own assets far beyond what I described.  We know this because have you seen the number of used yachts for sale online? Even the used prices are incredible in the tens of millions. The same goes with used private jets. And I agree with you that just the one yardman and maid won't be quite enough which demonstrates that more money can easily be spent as your first statement was that people cannot spend $800 M. My reply was that there is no $800M and gave you the latest Cash Option which netted about $527M so I went with that figure and I managed to off the top of my head burn through $200M and yet I underestimated the expenses attached to those assets that I proposed to purchase.  The lifestyle I proposed is not out of question as there are many wealthy people living at that level and even higher.  As for all those efforts killing me I'd have to disagree with you.  Again, many people are living that lifestyle and they aren't dead.  With regards to finding personal assistants you can trust those also exist because all those wealthy people out there have them and they are still afloat, not dead, not scammed still living la vida loca. So you see it is totally possible to burn through hundreds of millions of dollars and still be alive and well.  No fantasy my friend, there are people living the reality at this very moment. Do you think all those mansions in all those private gated communities are empty? No that's where the truly rich live and they live at a standard most people will never know nor ever see.  Just go online and you can find the most incredible assets for sale at seemingly impossible prices but there are people both buying them and enjoying them on a regular basis.  Think like the people who drive their yachts into Monaco.  Those kinds of people. The ones who are more interested in the quality of life because they don't have to worry about the cost.  They leave that to their personal assistants to both arrange and pay for on their behalf.


                          United States
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                          Posted: January 12, 2016, 1:55 pm - IP Logged

                          First of all, thanks for your prompt reply.  I believe that there are many very wealthy people out there who own assets far beyond what I described.  We know this because have you seen the number of used yachts for sale online? Even the used prices are incredible in the tens of millions. The same goes with used private jets. And I agree with you that just the one yardman and maid won't be quite enough which demonstrates that more money can easily be spent as your first statement was that people cannot spend $800 M. My reply was that there is no $800M and gave you the latest Cash Option which netted about $527M so I went with that figure and I managed to off the top of my head burn through $200M and yet I underestimated the expenses attached to those assets that I proposed to purchase.  The lifestyle I proposed is not out of question as there are many wealthy people living at that level and even higher.  As for all those efforts killing me I'd have to disagree with you.  Again, many people are living that lifestyle and they aren't dead.  With regards to finding personal assistants you can trust those also exist because all those wealthy people out there have them and they are still afloat, not dead, not scammed still living la vida loca. So you see it is totally possible to burn through hundreds of millions of dollars and still be alive and well.  No fantasy my friend, there are people living the reality at this very moment. Do you think all those mansions in all those private gated communities are empty? No that's where the truly rich live and they live at a standard most people will never know nor ever see.  Just go online and you can find the most incredible assets for sale at seemingly impossible prices but there are people both buying them and enjoying them on a regular basis.  Think like the people who drive their yachts into Monaco.  Those kinds of people. The ones who are more interested in the quality of life because they don't have to worry about the cost.  They leave that to their personal assistants to both arrange and pay for on their behalf.

                          those people would thumb up their nose at you trying in infiltrate their inner circles. those people built up their wealth gradually. you can't hit a lottery and just jump into that societal lifestyle. sure, you could buy a yacht. but you wouldn't use it more than once more than likely. it would be something completely foreign to you. and do you drive a yacht or is it steered or piloted. you could move to a gated community, sure. but the haves that already live there would ignore a johnny come lately lottery winner with no pedigree such as you would be. is your plan to dump all the less affluent people that you now know and try to hob nob with the rich. it just wouldn't work. you would end up going back to your old life and find out they really wouldn't be that enamored with you either. you might as well buy an island as you will feel a sense of isolation after winning this. good thing for you that it will not happen.

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

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                            Posted: January 12, 2016, 5:28 pm - IP Logged

                            I read you post several times. Even forward, backwards. And, I have a few questions.

                            1. Are you positively sure about all of this?
                            2. On the part where you talk about the '5 year jumps', are those figures you listed next to the years supposed to be percentages of the dividends paid, in those years?
                            3. I'm not sure I understand about 'taxed at a lower rate'.  What is supposed to be taxed at a lower rate and when?

                            I just want to be properly 'financially armed' if the unthinkable happens.

                            Groppo, on #1 I'm very sure about long term returns.

                            As for #2 about the 5 year jumps. The idea was I was trying to show you the longer you hold a great company. The more money they will make and send out to you the shareholder/part owner.

                            For each single share you had ownership of at start of 1997 you was paid 32 cents in total in 1997.
                            So...
                            In 1997: $0.32 or 32 cents.
                            In 2002: $0.6302 or 63 cents
                            In 2007: $1.135 or 1 dollar and 13 cents
                            In 2012: $1.56 or 1 dollar and 56 cents per share.

                            The point is, your income will grow as the companies grow in profits.

                            Another way of putting it is in 2014 the dividend was $2.14 or 2 dollars and 14 cents.

                            That's a 669% hike in the dividend paid out to you the shareholder over 18 years. As the profits grow at the company level, it all get's passed on down to you the owners (the shareholders).

                            #3 Max federal tax rate is 39.6% of normal income. However, dividend income is not the same as normal income.

                            23.8% are the max rate for that class of income.
                            Its combo of 20% dividend tax, plus a 3.8% Medicare surtax on net investment income from Obama health care bill.

                            This Wells Fargo link goes into tax details for investors.
                            http://tinyurl.com/gthuzxn

                            P.S I also sent you PM with some more links. Much more experienced people talk about investing far beyond my ability.

                            No bees, no honey.

                              ecnirP's avatar - prince symbol_black-mini.jpg
                              Farmington Hills
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                              Posted: January 12, 2016, 5:44 pm - IP Logged

                              Looking at the amount of money coming in with this jackpot, I can honestly say I have zero interest in investing it wisely to earn a good return. I'll be spending my energy on finding fun ways to spend it, knowing darn good and well that I'm really not going to be able to do so.

                              I've often thought about how to handle all those people who would inevitably come to you to invest in their great idea or business opportunity. I will start the conversation with "you need to ask me the right question before we proceed."

                              The right question is "do you want to make more money?" My answer would be "no." Kind of puts a damper on the sales pitch.

                              In putting the money away, I might even opt for interest-free checking accounts. Lowers the headache of having to account for all that interest income come tax time each year!

                                 
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