What is wrong with this picture ?

Reply #11

Guru101 — Sat, 16 Jun 2007 00:31:11 GMT

A jackpot isn't just an amount. It's the amount and the time in which that amount is to be paid. That defines what a jackpot is. For example, I could say Saturday's PowerBall jackpot is $66 million , when in reality, the technical correct answer is Saturday's PowerBall jackpot is $66 million over 29 years . Of course, most people just go ahead and use the first way of saying it. The lottery knows that a lot of people would rather have their prize in one lump sum, so they made a cash option.... [ More ]

Reply #10

codmander — Fri, 15 Jun 2007 22:01:45 GMT

lets not foget the current t-bill intrest rate of 5% heck 200k will give you 5k every 6 months in intrest imaging 25 mill interst wooo

Reply #9

guesser — Fri, 15 Jun 2007 13:29:09 GMT

I never said it wasn't, I implied the tax is too high, regardless of if it's on the cash payout, or the annuity.

I know it will never change, I was just venting..

Reply #8

dvdiva — Fri, 15 Jun 2007 04:56:36 GMT

Don't expect the idiots in Congress to have tax-free jackpots like the rest of the world. At least the Europeans and Canadians do it right.

Reply #7

KY Floyd — Fri, 15 Jun 2007 03:04:43 GMT

The jackpot is what it is.

That's exactly right. The jackpot is what it is, and not what it will be somewhere down the road. It's a really simple concept.

1. $1 million a year for 26 years

2. $26 Million

Which of those is actually $26 Million? If you can't tell the difference I'd like to buy your house for 150% of its market value.

Reply #6

Guru101 — Thu, 14 Jun 2007 18:24:34 GMT

The jackpot is what it is. The reason you're saying it's not, is because you think that all jackpots are in terms of actual present day cash value. That's not what a jackpot is. A jackpot is a TYPE of prize, and there are TERMS that go along with that prize. $44 Million over 26 years is EXACTLY what the jackpot was here. They took the cash OPTION. See, this is where most people think you're not getting what you really won, but you did. The cash option is exactly that, an OPTION. Just because th... [ More ]

Reply #5

Stack47 — Thu, 14 Jun 2007 12:10:20 GMT

$25.3 million is the current price for purchasing a $44 million 26 year annuity. The lottery commission gives jackpot winners the option of purchasing an annuity for them or a one time payoff of the cost.

Yeah, I know, we have discussed this ad nauseum, and I also know folks will pipe up and say '7 mill is better than zero - I'd take it', but still, after taxes, they get just 31.8% of the actual 'jackpot'.

This pre-tax jackpot of $25.3 million was split by two people (After taxes, each w... [ More ]

Reply #4

KY Floyd — Thu, 14 Jun 2007 04:41:39 GMT

If they won't give it to you now, then it isn't what the jackpot is. If you have to wait for it, then it's a potential future value of the real jackpot.

Reply #3

fja — Wed, 13 Jun 2007 04:06:18 GMT

have not quite figured out where they came up with 1.69 mill x 26, because that adds up to 43.94 mill. Gee, why don't they specify what THAT amount would actually be after taxes ?

Actual its 1.6923079 X 26 years, they just rounded off...taxes would be approx. 35-38% per year. If the lump sum is a 50% payoff (22 mil) and you took 36% taxes from that, it would leave about 14 mill between the 2 ppl. 64% of the pot.

Reply #2

Guru101 — Wed, 13 Jun 2007 03:40:00 GMT

No, the jackpot IS $44 million. You have the option of taking THAT prize amount annually over 26 years, or you can take a present day value. Both options are taxed. You ARE getting what you won and there's nothing to complain about. Lottery jackpots are advertised as ANNUAL payouts.

Reply #1

CA LotteryGuy — Wed, 13 Jun 2007 01:39:57 GMT

guesser...the govenment doesn't get 68.2% of the money. Remember they have to pay off the lower prizes also.

What is wrong with this picture ?

guesser — Wed, 13 Jun 2007 01:27:38 GMT

'A Florida financial-services firm employee and a Henrico County dental-clinic worker came forward Monday to claim a $44 million Mega Millions lottery jackpot.

Dan Franks, who lives in the Tampa Bay, Fla., area, and Kimberly Swanson chose to take a lump sum payment of $25.3 million rather than annual payments of $1.69 million for 26 years. After taxes, each will pocket about $7 million.'

Yeah, I know, we have discussed this ad nauseum, and I also know folks will pipe up and say '7 mil... [ More ]