Too Much Money?

Reply #38

CarlJohnson — Fri, 05 Jul 2019 11:08:28 GMT

Everything depends on the demands of every person. If you need a couple of tickets to the best show or concert, $100-200 thousand will be enough.

Reply #37

darthfury78 — Wed, 26 Jun 2019 21:35:12 GMT

A $500 Million payout, I would take that in annual installments and have it sent into a family trust whereby the money is fully invested in the stock market. Once the money is diversified, use the dividends as that money is taxed at federal income tax level of no more than 16%. The money would not be complicated to me as I would set up a Trust to handle that situation. When I die, the trust would protect the money from estate taxes because I will not have direct ownership over that money. This i... [ More ]

Reply #36

Ameru — Wed, 26 Jun 2019 13:40:48 GMT

Hello,

I use to be negative about scratch offs, lol, until I met a few people in Georgia that live off of them. They routinely check which scratch offs have the most high end prizes left and they spend the $300 to buy the entire book of scratchers. In GA every complete set is $300. So the $30 tickets have exactly 10 and the $1 tickets $300. The diehard players travel to surrounding states. They say that $5 and above tickets are your best bet. Look on YouTube. There seems to be some logi... [ More ]

Reply #35

Rexer90 — Sat, 22 Jun 2019 05:16:46 GMT

The Church of American Secular Humanists... CASH for short :)

I think it was Frank Zappa who came up with that one.

Reply #34

jerryb*49 — Mon, 10 Jun 2019 16:15:34 GMT

Thanks for the link LL. Glad someone won MM so now I can play for the $40 million. A bit much but I think can handle it. Hope the additional travel doesn't wear me down

Reply #33

Murgatroyd — Mon, 10 Jun 2019 02:42:05 GMT

They probably know about Discordian Popes, too.

Reply #32

thamizhpayan — Sun, 09 Jun 2019 17:02:55 GMT

same here

Or

20 - 1$ plays for Lotto America

Reply #31

thamizhpayan — Sun, 09 Jun 2019 17:02:38 GMT

same here

Or

20 - 1$ plays for Lotto America

Reply #30

Lucky Loser — Sun, 09 Jun 2019 16:57:17 GMT

I'm amazed that people will regularly drop $20 or more on a scratchoff trying to win a million dollar prize.

Okay, gotta admit I'm one of those people! Not too regular but, when I feel that little something, I grab one. Usually get something, and, have actually broke even quite often. Yes, the odds are better in that regard.

Reply #29

rcbbuckeye — Sun, 09 Jun 2019 16:46:30 GMT

I'm amazed that people will regularly drop $20 or more on a scratchoff trying to win a million dollar prize. Yes the odds are much better, but in a state like Texas, which is huge, those few winning scratch tix are spread all over. I'd rather take a shot at MM and PB for $2, even for only a million bucks. At my age, I'm set to retire.

Reply #28

Lucky Loser — Sun, 09 Jun 2019 16:35:46 GMT

When I read the title of your topic, I was immediately taken back to something similar I brought up for discussion just over seven years ago now. It seems that a certain type of player feels it's only worth playing PB and MM's when the jackpot is, in fact, around a half billion give or take and I just couldn't understand the logic. Still can't. Does this mean that a base $40M PB jackpot isn't worth playing for? Furthermore, just how does a person arrive at what is an 'acceptable' amount for them... [ More ]

Reply #27

Coin Toss — Sun, 09 Jun 2019 04:25:34 GMT

Hopefully you're not talking Universal Life Church or a clone of it, the IRS is hip to the whole story, trust me on that.

Reply #26

eddessaknight — Sun, 09 Jun 2019 02:17:20 GMT

Money (neutral energy) can be a great servant or a tyrannical master

Reply #25

Rexer90 — Fri, 07 Jun 2019 23:12:10 GMT

In reply to KY Floyd:

I'm already an ordained minister. Costs less than $50 you can do it online.

So when I win, the mansion will fall under the parsonage tax loophole

Reply #24

grwurston — Thu, 06 Jun 2019 21:20:06 GMT

The winner in SC back in March was the first.

Now that is something I wouldn't mind being second in.

Reply #23

KY Floyd — Thu, 06 Jun 2019 20:16:04 GMT

First, a good attorney should be working to make sure you don't have a meaningful fight with the IRS. You might end up there anyway depending on your risk tolerance and how aggressively you try to earn money or avoid taxes, but you should be expecting your advisors to keep you out of trouble in the first place rather than get you out of trouble. Being audited and paying some modest penalties isn't a big deal, but losing a fight over the legitimacy of your private foundation or a questionable tax... [ More ]

Reply #22

music* — Thu, 06 Jun 2019 16:19:01 GMT

Thank You KY Floyd for this very informative article on Charities. There is a lot more to them besides giving them a check.

Have you heard of Donor Advised Funds ? I believe it is like a foundation but less restrictions are placed on it.

A winner will have the best attorneys to fight the IRS.

Reply #21

hearsetrax — Thu, 06 Jun 2019 13:24:58 GMT

which is why I can't wait for July 1st

Imagine being the 1st instant billionaire in anonymous state

Reply #20

jerryb*49 — Thu, 06 Jun 2019 12:30:56 GMT

If you win a really big jackpot with all the publicity, you and your family will need ID and physical security as well.

Reply #19

KY Floyd — Wed, 05 Jun 2019 15:05:39 GMT

the disbursements from the charity would also be considered tax free (because charities don't pay taxes).

That's also not quite right, and not nearly that simple. The tax status of charities and the tax status to a beneficiary are separate issues. If a legitimate charity decides for some reason to pay for a new roof for an entity that's not needy the gift may not count as taxable income to the recipient, but the tax exempt status of a charity is subject to a bunch of rules. One of those rule... [ More ]

Reply #18

music* — Wed, 05 Jun 2019 15:03:59 GMT

The Cash Lump Sum for Friday's Mega Millions jackpot gives the winner many challenges and opportunities. Each person is different and will deal with the win their own way.

Financial Advisers. Accountants. Trust and Estate Attorneys. Just a few of the professionals the winner/s will be able to afford.

Reply #17

Rexer90 — Wed, 05 Jun 2019 01:19:45 GMT

So if I'm reading that correctly the $100M to the charitable foundation would be tax free (as I thought)... the disbursements from the charity would also be considered tax free (because charities don't pay taxes)..

the only taxes to be paid would be by the recipient if the amount was above a certain threshold? (like if your church paid for a new roof on your trashed house* or replaced your wrecked car with a new $80k Mercedes etc).

*There's actually a loophole for this. If the f... [ More ]

Reply #16

zephbe — Tue, 04 Jun 2019 13:22:20 GMT

Info from smart asset

The annual gift tax applies to each individual person you give a gift to.

What Gifts Are Always Exempt?

Certain gifts are not considered taxable. These include:

Gifts to charities approved by the IRS A gift to your spouse (as long as he or she is a U.S. citizen) A gift to cover someone s education tuition, if paid directly to the educational institution (does not cover gifts to cover room and board, books or supplies) Gifts to cover someone s medical expenses... [ More ]

Reply #15

jerryb*49 — Tue, 04 Jun 2019 12:26:26 GMT

Don't know the answer to your question, Rex, but this is one of the complications I would rather not deal with if I won a big jackpot.

Reply #14

Rexer90 — Tue, 04 Jun 2019 05:15:32 GMT

I think I asked this question before never got an answer...

Here's the scenario:

You win $200M.... that's after taxes etc....

So now you put 50-75% of it in a charitable foundation.. lets go with 50%..

Now you have a charitable foundation that has $100M in the coffers. By law you have to give away 2% of the annual income every year. So the first year would be $2M... after the first year it would be 2% of the interest generated (I think?)

Here's the question:

Have you effectivel... [ More ]

Reply #13

Coin Toss — Mon, 03 Jun 2019 04:38:15 GMT

Good points BobP.

Reply #12

BobP — Mon, 03 Jun 2019 03:35:14 GMT

Sometimes forecasting benefits from recalculation by inclusion of additional factors. Many lottery players are not completely free to control their jackpot. Consider if you will, how often there will be a certain someone who will automatically be in control of half your prize. One might be unaware of this person's hopes, plans and dreams, not having previously been in a position to act on them. Think opening a business, going to college, plastic surgery, etc. This person's expenses might well ri... [ More ]

Reply #11

jerryb*49 — Mon, 03 Jun 2019 00:33:54 GMT

Works for me

Reply #10

gy65 — Sun, 02 Jun 2019 22:02:18 GMT

Around $25.9 million cash value . . should clear around $15 million after 37% federal and 4.95% Illinois taxes. Most of us could manage to get by on that

Reply #9

jerryb*49 — Sun, 02 Jun 2019 20:19:31 GMT

Maybe the $40 million Powerball would be okay

Reply #8

noise-gate — Sun, 02 Jun 2019 01:16:18 GMT

Jerry, ask Vince if he finds having too much money a complicated situation.

Reply #7

music* — Sat, 01 Jun 2019 17:36:10 GMT

Thanks for the question. You could take the Annuity. Depending upon your age, health, heirs.

Feel free to spend as much as you want on those professionals that you listed. You will have the gold and can make the rules.

Do your best to enjoy your new life.

Stay with Lottery Post after your win and I will be grateful for your posts.

Reply #6

mikeintexas — Sat, 01 Jun 2019 16:17:11 GMT

You can use your tax free annual gift exclusion of $15,000 to any individual (twice that if you're married), be it your brother, sister or second cousin, a bum on the street (who might be MY cousin) or your favorite waitress at the local diner. You can also give away your lifetime estate exemption of $11.4 million and not have to pay the 40% gift tax. (although your heirs will have to pay that much and perhaps more - depending upon where you live.)

If KYFloyd isn't your favorite charity, you... [ More ]

Reply #5

hearsetrax — Sat, 01 Jun 2019 16:15:38 GMT

thanks 4 the links

Reply #4

gy65 — Sat, 01 Jun 2019 16:11:22 GMT

winning half a billion dollars would complicate my life

Submit Form 5754 and share the lottery curse with others.

Keep your share of the winnings simple . . VWEAX, budget the monthly dividends, pay the quarterly estimated taxes, and the annual tax filings would not be all that complicated.

Reply #3

CDanaT — Sat, 01 Jun 2019 15:59:22 GMT

Jerry....That kind of wealth makes it easier for you. Just take what you want hire someone to give away the rest.

Ideal amount ? $12-15M in the nest egg and $10M for charities, $5M for house, vehicles, toys, misc.

Reply #2

hearsetrax — Sat, 01 Jun 2019 15:47:58 GMT

life is complicated, more so when you let things and money control you

Reply #1

KY Floyd — Sat, 01 Jun 2019 15:33:59 GMT

I've got the perfect solution. If you don't want more than $5 to $10 million you can just give me the difference between $5 to $10 million and whatever you might happen to win. I'd definitely consider that an ideal amount.

Too Much Money?

jerryb*49 — Sat, 01 Jun 2019 14:41:43 GMT

IMO winning half a billion dollars would complicate my life (accountants, lawyers, advisors, charitable giving, etc.) I think taking home $5-$10 million would be ideal. How much would be the ideal amount for you