$40 Million Man's payments end

Comment #8

bobo7703 — Wed, 01 Sep 2004 08:49:25 GMT

and didn't go to someone to get a lump sum.

Comment #7

wiseone2 — Wed, 01 Sep 2004 07:54:16 GMT

Quote: Originally posted by jeffrey on September 01, 2004I thought the federal tax rate was down to 25% now and then add the state tax. Please let me know if I'm wrong. I use the cash value amount at Ohio Lottery Web site. Ohio state tax is 3.5% and fed is 25%.Remember, it's just a game and have fun.The tax rates posted on the state lotteries websites indicate how much they withhold for state and federal taxes out of your winnings. There usually is a disclaimer stating something to the effect t... [ More ]

Comment #6

jeffrey — Wed, 01 Sep 2004 05:17:22 GMT

I thought the federal tax rate was down to 25% now and then add the state tax. Please let me know if I'm wrong. I use the cash value amount at Ohio Lottery Web site. Ohio state tax is 3.5% and fed is 25%.Remember, it's just a game and have fun.

Comment #5

fxdwg — Wed, 01 Sep 2004 03:39:09 GMT

Twenty years ago Illinois did not offer a cash option. as for cash vs annuity I guess it is all relevant as to your age.The tax liability will be 39.6% plus whatever your state tax is in Illinois it is 3% so we are looking at 42.6% before any investments which will also be taxed and because of your annuity the burden is 39.6%. Now take the lump sum and pay the taxes take a simple ten percent for frivolous spending then slip the rest in tax free municipal bonds with a 4% return depending on the... [ More ]

Comment #4

jeffrey — Tue, 31 Aug 2004 23:37:40 GMT

The state lottery web pages explain what becomes of the jackpot to pay the annuity. The jackpot is invested in bonds in such a way to yield the payments every year. This way the original jackpot remains property of the state. The clever player should be able to do the same thing and keep the lump sump intact. First decide what you need to earn or want, then examine the bond market. When rates are low invest in short term bonds and base the amount on the rate earned. Invest the remainder in longe... [ More ]

Comment #3

tg636 — Tue, 31 Aug 2004 15:09:16 GMT

I am still waiting for the proof that a lottery winner would make more money after 20 years investing the lump sum than if they choose the annuity. Please post the link to an article that will make a believer out of anyone who isn't sure. To me, it seems like you have to make back 40% of your money just to get back to zero, assuming 35% in taxes and 5% to spend on enjoying life. Then you have to make an additional X% to match or beat the annuity. But maybe I'm wrong, and its easier than I think... [ More ]

Comment #2

CASH Only — Tue, 31 Aug 2004 13:46:55 GMT

If he were to win again, I bet he'd choose cash.

Comment #1

DoctorEw220 — Tue, 31 Aug 2004 13:44:06 GMT

at least he thinks he won't need another job again, and didn't go to someone to get a lump sum.

$40 Million Man's payments end

Lottery Post — Tue, 31 Aug 2004 12:53:45 GMT

For the first time in 20 years, Michael Wittkowski and family won't be receiving their big fat annual check courtesy of the Illinois State Lottery.The $40 Million Man is on his own again.Do you remember him? If you were around at the time, who could forget?His was the first mega-jackpot in Illinois lottery history, the biggest to a single winner anywhere in the nation at the time, earning the then-28-year-old unmarried printer from the Northwest Side a spot in the Guinness Book of World Records... [ More ]