lump sum confusion

Reply #4

maximumfun — Fri, 11 May 2012 15:56:54 GMT

LOL

Reply #3

psykomo — Fri, 11 May 2012 04:55:00 GMT

lump sum don't B confused if U haete OAMO say SO!!!!!!!!!!

if U haata TOTAMOTO say SO!!!!!!

lumo sum wake UP if U heatee peopleTO say SO

Reply #2

Stack47 — Fri, 11 May 2012 04:04:36 GMT

A lump sum is the cash value of the advertised annuity jackpot. The current estimated cash value of PB is $50.4 million and the estimated annuity is $80 million. If the winner decides to take the annuity, they will get 30 annual payments of about $2,166,667. 25% is deducted for Federal taxes and an average of 6% for state taxes so the net payment will be $1.84 million annually. Depending on deductions, the winner might owe another 9% in Federal taxes.

If the winner takes the cash, they should... [ More ]

Reply #1

JWBlue — Fri, 11 May 2012 02:33:19 GMT

I am confused by these statements:

A lump-sum winning will typically get reduced by 45% or more for the time value of money (acceleration by 2o+ years)

55%, $55 million.

and then the net amount is further reduced by approximately 35% or more for taxes #65533; leaving a net amount of 35% or less of the gross winnings.

$55 million x .35 =19.25 $35.75 left

Installment collections will only generally only be subjected to the federal tax hit (depending on state rules) and the taxe... [ More ]

lump sum confusion

GHolnyuk — Fri, 11 May 2012 01:52:27 GMT

I am confused by these statements:

A lump-sum winning will typically get reduced by 45% or more for the time value of money (acceleration by 2o+ years)

ok, so say jackpot is $100, lump sum is 60% of it, so it's $60m, correct? Fine so far.

and then the net amount is further reduced by approximately 35% or more for taxes #65533; leaving a net amount of 35% or less of the gross winnings.

ok, so the taxes are taken off the $60m not the jp amount of $100m, right? Leaving $40m in the b... [ More ]