Mark Cuban's Advice to Winner

Reply #29

music* — Mon, 08 Feb 2016 18:57:52 GMT

Do get a tax pro to answer your questions. I just read on forbes.com when you put lottery into the search box a line from Ric Edelman of Edelman Financial Services. He says to GO SLOW and ask a tax pro.

Ric mentioned that the 40% figure may be too low. It could be as high as 80% gift tax on amounts above $14,000.00. You can use your lifetime exclusion as has been posted already.

Reply #28

IJustWannaWin — Mon, 08 Feb 2016 17:20:07 GMT

Meatman,

NC. I am originally from NJ so I am still not over paying propery taxes for cars and sales tax for clothes and shoes lol. But you have to pay money to drive up there so I guess everything is a trade off

Reply #27

IJustWannaWin — Mon, 08 Feb 2016 17:17:38 GMT

Interesting but you have consider to people's philosophy on borrowing money and you have to consider your relationship. I for one never lend money. It creates an avenue for problems to arrive. The lendee has to deal with guilt and shame should they be unable to return the money and the lender becomes hostile and angry. I instead gift the money if I can afford to and someone is in a tight spot. $500 is a lot of money for a lot of people...many people don't take home 500 bucks in a week so again t... [ More ]

Reply #26

TheMeatman2005 — Sun, 07 Feb 2016 06:35:08 GMT

Sounds like Connecticut

Reply #25

IJustWannaWin — Sun, 07 Feb 2016 05:58:38 GMT

Well said. Governments, local and national, make up the rules as they go and those rules are always in favor of you giving the government free money. Paying taxes on the same money twice should be illegal. One of my least favorite taxes is property taxes on cars. I pay sales tax when I buy the car, now I have to pay taxes annually for owning it?? Seems like double taxation to me

Reply #24

Brcebrce — Mon, 18 Jan 2016 07:21:08 GMT

pretty sure that you can make a trust for them that they can get around the gift tax. it has a specific name, can't remember the name of it.

Reply #23

Stack47 — Fri, 15 Jan 2016 05:01:50 GMT

You have 60 days after you validate the ticket.

Reply #22

Nikkicute — Fri, 15 Jan 2016 02:34:55 GMT

You have only 60 days if you want the lump sum, 180 days is the deadline to turn in the ticket.

California gives its winners a year to contact lottery officials before the money automatically goes to schools. Winners in Tennessee and Florida must claim their winnings within 180 days.

Reply #21

MegaWinner — Fri, 15 Jan 2016 01:45:48 GMT

At 1.5 billion bucks, or almost $700mm after taxes, I'd make a list of family and friends that i'd set up for life. Like, I'd easily give my mother and three sisters $20 million each no problem, and I'd pay the gift tax no worries. Unless it's a state where you can divide the winnings as you see fit as you claim the prize. I'd keep $300mm and give the rest away to close family and a few close friends (and of course some to charities over the years).

And on the flip side, I'd even consider the... [ More ]

Reply #20

Masone — Thu, 14 Jan 2016 00:29:40 GMT

Don't take the annuity. Just take the lump sum and buy your own annuity if you're worried about it.

Reply #19

bigdaddy — Wed, 13 Jan 2016 23:53:19 GMT

not worried about the loss,it will go back up with t many shares BOUGHT

Reply #18

Stack47 — Wed, 13 Jan 2016 23:25:55 GMT

As for friends and relatives, I read a unique idea. Call or email them all and ask to borrow $500. You can remind those who said No after you collect your winnings.

Reply #17

JBounds — Wed, 13 Jan 2016 20:53:38 GMT

I have 180 days to think about it and prepare on what to do, and yes I'd take awhile to get the right people to help me before I even thought about going to cash it in. No way I would do it even the first after winning. Right when people think no one is coming forward I'd be prepared and sucker punch them all and disappear.

Reply #16

TheMeatman2005 — Wed, 13 Jan 2016 20:47:48 GMT

10 million shares of O at a loss of 1.10% today would have resulted in a loss of almost $7 million.

Reply #15

TheMeatman2005 — Wed, 13 Jan 2016 20:35:36 GMT

My recommendation on whether to take the annuity or lump sum payment is...

If you are age 40 or below at the time you win take the annuity. At that age, you might expect to live another 29 years. And, if you are wise with your money's spending and saving, you would have enough left to last the rest of your life, even after the last payment.

If you are over 40 at the time you win take the lump sum cash payment. You might not live to see the 29th payment and the estate taxes due on t... [ More ]

Reply #14

bigdaddy — Wed, 13 Jan 2016 20:20:28 GMT

buy 10 million shares of the realty group stock symbol o and live off the monthly dividends

Reply #13

Lucky4Life — Wed, 13 Jan 2016 20:19:49 GMT

There's the gift tax to consider. That 1 million will become 1.5 million, so on and so forth. I would give my mother money and that is the only person I would pay gift tax on. Which is something I find incredibly asinine about the gift tax system. I can marry any Joe off the street, give him half my money tax free yet my mother who birthed me and suffered me through my teenage years has to pay estate tax when I die or I have to pay a gift tax while i'm alive. Unbelievable.

Reply #12

Lucky4Life — Wed, 13 Jan 2016 20:17:12 GMT

I would never take an annuity because I don't trust the state of Florida to pay it out over the next 30 years. I'll take the money now.

Reply #11

lcoleman — Wed, 13 Jan 2016 20:14:36 GMT

And this is the last thing he said before he went bankrupt haha.

The problem is it becomes habit. So if this is what you want to do you must set up hard limits meaning you have to abide by the limits you set. With the cost of homes, superyachts (even charters), and bail for some people, I can easily see someone blowing thru this if they're not paying attention. I'm sure people thought theyd never blow through 20 million or 100 million before. It's not only possible, it's happened.... [ More ]

Reply #10

HoLeeKau — Wed, 13 Jan 2016 15:46:29 GMT

Click on this icon on the left and find your state to find out.

Reply #9

haymaker — Wed, 13 Jan 2016 15:25:12 GMT

I think LOTTOBUX was wondering what the annual payment would be.

I have no idea

Reply #8

MaximumMillions — Wed, 13 Jan 2016 15:05:43 GMT

The advertised 1.5 billion dollars.

Reply #7

ArizonaDream — Wed, 13 Jan 2016 01:51:20 GMT

Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.

No. That's OK advice for the winner of 1 million or 5 million. But at the current levels, why not give to CLOSE friends and relatives

Reply #6

LottoBux — Wed, 13 Jan 2016 00:16:09 GMT

What Would The Annuity Be On A Jackpot Of This Magnitude

Reply #5

sthl129 — Tue, 12 Jan 2016 23:20:39 GMT

What a great problem to have!! I hope I win so that I can learn how one protects 1 billion dollars. I guess I would need 20 CDARS accounts? LOL. I would absolutely need a good team of tax accountants and financial advisers to help manage this.

Reply #4

MaximumMillions — Tue, 12 Jan 2016 22:25:19 GMT

US Treasury Bonds are backed by the government. If the US government goes down to the point where it falls and the military can't even prop it up you can forget about your money anyway.

You can keep 50M$ in a CDARS account, it's a service that splits the money into 250k$ accounts and gives you one account and one statement

Reply #3

travelintrucker — Tue, 12 Jan 2016 21:55:49 GMT

I agreed with most. FDIC only, ONLY insures up to $250,000.. So, keeping it in the bank isn't feasible. I don't know about money market accounts. Taking the annuity can be good and bad. It all depends on your spending habits. There's really not much I want to buy. I mean, less than $100,000. I mean, besides a house. I just bought a brand new car and can pay that off whenever. I'm thinking about traveling and having the time to do things I've always wanted to do.

Reply #2

haymaker — Tue, 12 Jan 2016 21:51:01 GMT

That's where I stopped reading...did he say anything worthwhile after that

Reply #1

Romancandle — Tue, 12 Jan 2016 21:35:08 GMT

He recommends taking the annuity...

Mark Cuban's Advice to Winner

HoLeeKau — Tue, 12 Jan 2016 15:48:20 GMT

http://finance.yahoo.com/news/heres-mark-cubans-advice-winner-135430907.html

My favorite:

Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.