Would you have money power with the banks after you hit the lottery?

Reply #23

grengrad — Sun, 04 Jan 2009 17:28:26 GMT

The Federal Reserve is not federal, but the government does get to appoint the majority of it's leadership, which gives some control over it.

Also, while it may not be federal, it is a reserve system.

Member banks have to send a portion of their deposits to the Federal Reserve, which gives the Fed Reserve it's reserve .

It is from this reserve of cash that the Fed Reserve can act as a lender of last resort, which it has done to help keep the economy stable during the financial crisis of... [ More ]

Reply #22

time*treat — Sun, 04 Jan 2009 08:17:29 GMT

LL @ jxp.

@dphillips: I think your results will depend on the ratio of the amount you want to short-term borrow and the amount you won.

Winning 5 mil would easily allow you to borrow 50 grand. They know that's their in to offer pricier services .

If you want 500 grand before your jackpot clears, the bank's gonna need a little more sweet-talkin'

*side note* That annual exclusion amount has been changing every year for the last few. Gotta check it every year.

Reply #21

justxploring — Sun, 04 Jan 2009 06:22:04 GMT

GamerMom, you don't have to pay gift tax on any amount as long as the total in your lifetime is under $1 million. It's just more paperwork. The $13,000 is the annual exclusion. (per person) So you can give $50,000 or even $100,000 to one person. But you just need to report it to the IRS.

Reply #20

GamerMom — Sun, 04 Jan 2009 03:34:07 GMT

Wonderful idea!! I still wouldn't give anyone over $13,000. I love my family but paying a 45% gift tax is just rediculous!

I mean, how much do you need to spend in 3 or 4 weeks?

Exactly. I couldn't enjoy the money knowing it was borrowed. Besides that, I wouldn't even quit my job, no matter how much I won, unless I knew for sure the $$$ was in my bank. Nothing in this life is certain until it happens.

Reply #19

justxploring — Sun, 04 Jan 2009 03:22:52 GMT

You can use the search feature.

Check out time*treat's blog. He's been ranting about that subject for over 2 years.

Reply #18

four4me — Sun, 04 Jan 2009 03:21:08 GMT

Ah that makes sense now i thought you meant while you were typing because so many times posts used to get lost when taking to long to post. Here's an idea type it it the body of an email or in note pad, edit it, copy and paste to a post. Or save it in note pad etc until you return to finish editing.

Reply #17

four4me — Sun, 04 Jan 2009 03:14:43 GMT

If i have won the lottery jackpot and i have waited most of my adult lifetime to do so i think i could wait a few weeks for my money, it will give me additional time i need to get it together for the big plans i already have.

Financially I'll have no need to borrow money before i collect my lottery win, realistically if you win you should set up your trust fund and update any insurances you have as well as your will. Reason being nobody knows if he or she will pass away soon after a lottery w... [ More ]

Reply #16

justxploring — Sun, 04 Jan 2009 03:13:55 GMT

Okay, thanks, four4me. But I meant after I post it. I left my computer and came back to edit later. I think we only have 20 minutes to make changes to a post. I guess I should just think through a comment before posting it, but I sometimes post and then have an idea that pops up in my so-called brain.

Reply #15

four4me — Sun, 04 Jan 2009 03:05:05 GMT

justxploring said: i I began to edit my last post, but I ran out of time.

If you are using the rich text editor look at the life saver next to the ABC icon that lifesaver refreshes your post text and keeps it intact until you are ready to post I believe you have unlimited time to post to a thread. no time limit.

Reply #14

BuyLow — Sun, 04 Jan 2009 03:02:28 GMT

Good to know. Thanks.

Reply #13

justxploring — Sun, 04 Jan 2009 02:58:37 GMT

BuyLow - we've had this discussion many times in the blogs. So you are not alone

Reply #12

BuyLow — Sun, 04 Jan 2009 02:55:55 GMT

Our money is monopoly money anyways.....the FEDERAL reserve is NOT federal at all and there are no RESERVES, in fact it's a monopoly of PRIVATE parasitic banks sucking off of us.

Sorry for the truth. Don't believe it...do some research. Fed Reserve act 1913 is a good place to start.

Reply #11

justxploring — Sun, 04 Jan 2009 02:54:13 GMT

Unfortunately, the rates are really low. You'd be lucky to get 4%, even with a large deposit. There are better investments IMHO. I also wouldn't put too much money in any one bank. The banks with the best rates often have the lowest ratings and could possibly fail. That's one reason they offer CD specials, that is, to raise money to increase assets.

Reply #10

rcbbuckeye — Sun, 04 Jan 2009 02:50:44 GMT

I wouldn't be going to a bank for a loan, I would be finding the bank that paid the highest interest rates for the use of my money.

Reply #9

justxploring — Sun, 04 Jan 2009 02:40:05 GMT

Disagree. Jarasan, sure some loans are written that way, but what you say isn't true in all cases. Many loans have penalties for early payment. A short-term loan might have very steep penalties if all the interest isn't paid.

I began to edit my last post, but I ran out of time. As I began to say, a ticket is just a piece of paper. What if you die before you get the money? Yes, I know it goes to your estate, but using a lottery ticket isn't good collateral. Also, let's say I work at a bank som... [ More ]

Reply #8

justxploring — Sun, 04 Jan 2009 02:07:53 GMT

I'm not so sure I agree. Just because someone is coming into a lot of money doesn't mean he/she is responsible. A lot of people with money don't pay back debts. However, if you have a good credit history as you stated, why not just use a credit card for a few weeks? I mean, how much do you need to spend in 3 or 4 weeks? Since you would be getting your money before the monthly bill is due, you wouldn't even pay an interest charge!

It's not as if banks have millions sitting around, so these thi... [ More ]

Reply #7

jarasan — Sun, 04 Jan 2009 01:51:04 GMT

Yes, they would give a loan. Credit is extremely tight right now, even if you have a good credit rating it is tough to get. Proof of a large future income would just about guarantee a loan. Remember a loan can be paid off at any time without penalty for the most part and of course no interest for that remaining principal.

Reply #6

dphillips — Sun, 04 Jan 2009 00:41:22 GMT

Thanks, grengrad, for the vote of confidence! Now, I'm geared up

Reply #5

grengrad — Sun, 04 Jan 2009 00:34:50 GMT

So, I was thinking...since lottery winners do not receive their check/direct deposit into their accounts until approximately 4-6 weeks, depending upon the state, and if a winner needed a loan, would banks be willing to grant the winner a loan?

Yes, most definitely.

Reply #4

dphillips — Sat, 03 Jan 2009 23:49:19 GMT

Guru101, I am not going to promote being submissive, fearful, and non-assertive. What I mentioned is what I would do. Other LP members might decide their strategy.

How would you react

Reply #3

Guru101 — Sat, 03 Jan 2009 23:10:36 GMT

Why are you promoting the act of being a sucky customer

Reply #2

dphillips — Sat, 03 Jan 2009 22:31:34 GMT

tiggs95, great idea -- I never thought of that one. If your relatives can come through for you, then those relatives will reap the rewards of your generosity.

Reply #1

tiggs95 — Sat, 03 Jan 2009 21:27:25 GMT

1st thing you do is ask all your relatives to float you a 100.00 loan and not tell them you hit millions then whoever floats you a 100.00 loan is in luck and whoever said no oh well .....Kind dirty but fun..

Would you have money power with the banks after you hit the lottery?

dphillips — Sat, 03 Jan 2009 21:04:19 GMT

I recall a lottery winner who filed for bankruptcy one week, and the next week he hit the lottery. Talk about dumb luck!

So, I was thinking...since lottery winners do not receive their check/direct deposit into their accounts until approximately 4-6 weeks, depending upon the state, and if a winner needed a loan, would banks be willing to grant the winner a loan?

Since I would be holding the financial bargaining chip, I would not go to the bank officer begging...this would be the scenario