Interest on Lotto winnings?

Reply #18

justxploring — Wed, 12 Dec 2007 22:58:55 GMT

Thanks, but when I wrote...

Investing $50 million is too complicated to explain in a post. If anyone here can do it well, then he/she probably isn't running around buying lottery tickets to win a jackpot.

I was talking about myself too. But please keep in touch. LOL What I want to know is what do you do with the jackpot check? Where do you park it until you invest the money? That is probably the first thing I would ask an attorney or a financial planner. I actually do know a few... [ More ]

Reply #17

MissNYC — Wed, 12 Dec 2007 22:41:31 GMT

Wow! I have an idea, when I win the mega millions this Friday, I'll just hire you to be my financial advisor! LOL

Reply #16

MissNYC — Wed, 12 Dec 2007 22:40:06 GMT

Has anyone heard of CDARS? It's suppose to insure your money up to 50 mil. Here's the link: http://www.cdars.com/index.php

Thoughts

Reply #15

justxploring — Wed, 12 Dec 2007 21:26:22 GMT

Thanks fastball. As I said, I'm not a financial expert. Just sharing some stuff I've learned. TexasDreams is right about risk. You can double your money in a good year - just look at 1999 and tech funds. But you need to know when to pull out and say okay, I've made a bundle. There are personal reasons I don't like financial planners, so I admit I am biased.

Anything that can go up 100% can go down 100% too, which is why it's called risk. Then there are people who say to be diversified,... [ More ]

Reply #14

fastball 9 — Wed, 12 Dec 2007 15:12:44 GMT

Your first post was really good stuff. It ventured into the complex world of investing that anyone with a lot of cash should deal with. Reminds me some of college accounting and finance class.

People probably have short sightedness when thinking about lottery winnings and assume many things about money which aren't true. So, they have to get up to speed. And soon.

I look at David Edwards and see someone who, through poor decisions, blew all of his dough. That's fine, but I'm sure it w... [ More ]

Reply #13

TexasDreams — Wed, 12 Dec 2007 13:35:14 GMT

I think it depends on the degree of risk, before my divorce I had a basic conservative portfolio of investments, split between stocks and bonds. Since my divorce to recoup the loss of assets I have a very risky portfolio, all stocks. When I win, I think putting the money in a brokerage house where I could buy FDIC insured CD's from someone like Fidelity or BOA Investment Securities, so as to spread the money around. Also, since a member made a good comment comparing FDIC to FEMA, I would might w... [ More ]

Reply #12

KY Floyd — Wed, 12 Dec 2007 08:35:43 GMT

If Richard Branson is making that much in interest he should forget his current businesses and get into money management so that I can retire filthy rich in a couple of years.

There are 8,760 hours in a year, so a billion dollars invested for an hour would be the same as 1,000,000,000/8,760 invested for a year. 1,000,000,000/8,544 is $114,155.25. To earn 750,000 an hour in interest he'd have to be getting about a 757% return. The 750,000 an hour would be $18 million every day, and 6.57 bill... [ More ]

Reply #11

justxploring — Wed, 12 Dec 2007 08:23:41 GMT

I don't know a thing about quantum physics, Pac. I know you are joking, but you really don't have to be a math genius if you work at a bank or handle financial products for people. You just need to be a good listener and know the products, rates and the laws be very careful conscientious.

I'm also not a know-it-all but I've studied everything I listed above at length and I've had a couple of jobs in the financial world. I like to share information, that's all.

I thought my standa... [ More ]

Reply #10

BaristaExpress — Wed, 12 Dec 2007 03:14:07 GMT

I watched a show with Larry King live (I believe) when he had interviewed Mr. Richard Branson. Now near the end of the interview, Larry stated that Mr. Branson is worth 1 billion dollars and by the time this interview has ended he will have made around $750,000.00 in interest on that 1 billion dollars! Now that just blew me away that 1 billion dollars earns $750K an hour in interest! I am only going by what Mr. Larry King stated and I might add Mr. Branson confirmed exactly what Larry stated abo... [ More ]

Reply #9

psykomo — Wed, 12 Dec 2007 02:38:12 GMT

Thank you >>>>>>>MissNYC:

Would U please allow a PSYKO to put your ??????????????????????

Under Advisement............it is complicated!!!!!!!!!

Please answer a few question's........>>>>>>>>>>>>>PLEASE!!!!!

(1) what are you'r investment risk

(do you like high or low RISK?)

(2) do you recieve a goverment check of any kind?

(note: you will loss it if they know you WIN a LOTTERY!)

(3) are yoy able to make finenatcinal......>>>>decision's??????

THAnk's for you... [ More ]

Reply #8

Coin Toss — Wed, 12 Dec 2007 00:33:17 GMT

Believe it or not, banks have a celiing on cold hard cash and don't want to have over a certain amount 'on hand', especially by one depositor.

After that amount, things change and they have people from outside the bank crawling aroubnd all the time.

We have an ass't professor of marketing here at a community college who put together a bank promotion involving collector rifles.

The bank he was working with actually asked him not to do it again because of these rules.

There's a... [ More ]

Reply #7

pacattack05 — Wed, 12 Dec 2007 00:18:40 GMT

My God Justxploring...you seem to have vast knowledge in just about every subject that comes along. I'm impressed.

What's your take on Quantum physics, and it's application on dualism and sub-atomic particle degeneration propensity equations proposed by Shroedenger's cat theory ?

All kidding aside, you're on the ball.

Reply #6

justxploring — Wed, 12 Dec 2007 00:04:30 GMT

OMG! I had no idea I typed so much - sorry. It didn't look as long on notepad.

By the way, I'm writing this in advance, since I know time*treat is going to comment that I typed some info he/she already mentioned. That's only a coincidence. I was on the phone for 30 minutes. You've mentioned this before on several threads as if I am copying your posts. I composed this offline and then pasted it. Many times I see comments or suggestions I've made but I never say anything to the other mem... [ More ]

Reply #5

justxploring — Tue, 11 Dec 2007 23:47:23 GMT

RJOh, I agree with you, and banks often have partners, but you can have a lot more than $100,000 in a bank. You need to have qualifying beneficiaries however. But if you have children, siblings, etc., you can leave them each $100,000. This also helps to avoid probate because it then becomes a revocable trust, although each state handles wills trusts differently. I believe this information is available on the FDIC website.

Investing $50 million is too complicated to explain in a post. If... [ More ]

Reply #4

time*treat — Tue, 11 Dec 2007 22:36:53 GMT

With 50 mil, you could shop around for competitive interest rates on a 1 year CD. Banks compete ...

Investing your money (which is what the banks do with your CD deposit, that's where they get the interest from to pay you) yourself may give you more or less return on your money than a Certificate of Deposit. The other difference is that you lose the set-and-forget convenience of parking it in a bank.

Reply #3

RJOh — Tue, 11 Dec 2007 22:25:40 GMT

You could put your money in CD which usually pay more than a saving account. Banks will only insure your accounts for $100K but some banks participate in a plan where the CD are shared by other banks which allow more of your money to be insured but you should talk to a financial adviser to get the facts.

Reply #2

LuckyLilly — Tue, 11 Dec 2007 21:35:03 GMT

I've seen passbook savings accounts at 5%. However, I have no idea if you can get more if you have huge amounts in just regular savings. I suspect you can't. So if you get 50 mil AFTER taxes and put it into a 5% savings, that's 2.5 mil per year in interest alone. But you'd have to pay taxes on that income.

Reply #1

EXMECHANIC — Tue, 11 Dec 2007 21:16:13 GMT

I'm just as curious as you, as I have no real clue. But I would guess you could make close to 400,000 a year in interest with safe investments. I'm sure a person would make more than enough to live a comfortable life year in and year out on interest alone.

Interest on Lotto winnings?

MissNYC — Tue, 11 Dec 2007 21:06:27 GMT

OK...we all know that we earn interest on our money in the bank, which usually isn't much. My question is, lets say tonight, I win the mega millions jackpot and I decide it would be easier to just put it in the bank. On average, how much would I make a year in interest with the lump sum of close to 50 million? How would it be different if the money was invested