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General question(s)

Topic closed. 4 replies. Last post 11 years ago by SirMetro.

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United States
Member #17909
June 29, 2005
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Posted: June 29, 2005, 7:29 pm - IP Logged

Hey all...

Lottery (and forum) neub here. I haven't been able to find an answer to this question so here goes...

Let's say I win a powerball jackpot (10 million plus). Let's say I'm at the Lottery office when the doors open (as I most certainly would be, signed ticket in hand). How much time elapses between the moment I say "I think I have a jackpot winning ticket", and the moment I actually have cash in my possession? What is the process?

And if you could clarify me on something... I have seen a lot of discussion of the benefits of cash payouts vs lump sums. I once figured I'd take the annuity, but Iafter reading almost 30 pages of discussion last night, I'm a cash man. "Cash is King" as my Grandfather used to say.

Assuming I win the same 10 million dollar jackpot, I walk away with about 5.8 million if I take the cash option, right? If I had a stroke of insanity and chose the annuity, would my first payment would be $345,000(ish) or 200,000(ish)?

Thanks. I'm glad I found this group... My wife is tired of me talking about powerball! :)

n.

    TheGameGrl's avatar - character catafly.jpg
    A long and winding road
    United States
    Member #17084
    June 10, 2005
    4523 Posts
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    Posted: June 29, 2005, 9:34 pm - IP Logged

    My guess is anywhere from four to six weeks til you see any Ben Franklins. You'll still be asked to file forms and get legal waivers done before they cut the check. (which really isnt a check, its a EFT paper to a federal regulated bank, that shows proof that the funds were deposited.)

    No one can really say what your final cut will be since we dont know your state of residency, where your purchasing the ticket , and how you will fair come tax season. Good rule of thumb is 35% of whatever ya win will go to Uncle Sam .

     

    And lastly- we are glad you found this board too! Welcome!!!

    ~~Is it true, Is it kind,Is it necessary. ~~~

     Thanks be to the giving numbers: 1621,912,119 02014

      Todd's avatar - Cylon 2.gif
      Chief Bottle Washer
      New Jersey
      United States
      Member #1
      May 31, 2000
      23260 Posts
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      Posted: June 29, 2005, 9:47 pm - IP Logged

      Welcome to LP!

       

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        md
        United States
        Member #14047
        April 20, 2005
        579 Posts
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        Posted: June 30, 2005, 8:53 am - IP Logged

        Welcome! Your best plan of action is to: 1. sign the back of the ticket store in a safe place, 2. talk with a tax attorney asap, 3. hire both a financial planner and accountant asap, 4. use whaever means you have to get out of your existing ressidence (I'm not saying get of town per se, but get away to a place you can think and plan undisturbed), 5. create your living blueprint/plan, 6. claim your winnings, and 7. execute/implement your plan.

        Remember

        "Let yourself be crazily, stupidly enthusiastic.  Be

         

        so convinced of the possibility- no probability- of

         

        winning that you make other people believe they,

         

        too can win. " Author Unknown 

         

         

          SirMetro's avatar - center
          East of Atlanta
          United States
          Member #6191
          August 11, 2004
          1389 Posts
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          Posted: June 30, 2005, 11:00 pm - IP Logged

          I guess I have to say I would straddle the line on the Cash/Annuity option. Since MegaMillions pays over 30 years, my objective would be to hit $60 million plus. Under an annuity, I would see an annual pretax check for $2 Million for 30 years.

          I think, after tax value would put it around $1.2 million, which would result in roughly a net bring home of $36 million after 30 years.

          Now, if I took the cash option, I think I would get to see roughly $42 million pretax (not real sure about the actuall value, so don't crucify me for being wrong). The after tax value would be somewhere around $24 million.

          Now, perhaps with some wise investing, utilizing the knowledge I have of the stock market ( I love option trading), over a course of a few years, I could easily surpass the value of $36 million. But, my mind can not fathom the idea of surrendering a third of estimated win just because I have no patience.

          Now, maybye anything under $60 million, I would consider differantly, but for now, this is my general mindset, good, bad or indifferent.

          Sir Metro

          I don't always claim to be right...I just don't want to admit being wrong.