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would you take cash or payments on the PB

Topic closed. 62 replies. Last post 11 years ago by CASH Only.

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Goleta, CA
United States
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October 12, 2005
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Posted: October 13, 2005, 8:42 pm - IP Logged

i wish i could spit it, but if i couldn't i'd take the cash

    truecritic's avatar - PirateTreasure
    Michigan
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    September 24, 2005
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    Posted: October 13, 2005, 8:56 pm - IP Logged

    lchoro

    Oops. Should of known that.  Actually it is explained at that site as well. 

    Thanks.

      Tenaj's avatar - michellea
      Charlotte NC
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      June 18, 2005
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      Posted: October 13, 2005, 9:03 pm - IP Logged

      Big Grin I would choose cash.  Get it while the getting is good.  You'll never know what can happen.  They can go bankrupt or something.  I'm financial literate, I think I could handle it.   

       

      takeemtothebank

        dvdiva's avatar - 8ball

        United States
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        September 17, 2003
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        Posted: October 13, 2005, 9:25 pm - IP Logged

        lchoro

        The site says 25% Federal (Michigan is 3.9%) so total 28.9%

        Some States have no tax on lotteries.  That would be considerably less than 40%

        dvdiva

        So you are saying you could have enough cash and still buy an annuity to make up the $148 million?  Do you have any estimates of the cost of such an annuity? 

        If you think it's only 25% than you would get a rude awaking on the April after winning. Not to mention how the state tax authorities would take it. Every major winner (over 200 million) took cash. Odds are they consulted lawyers before hand. Since I would also take cash and form a diverse trust I would not be in the market for an annuity. If you felt that you can't handle the money or have a relative you know can't handle the money it's far wiser to set up a perpetual annuity for tham rather than depending on the lotteries annuity unless you know they will die before the 26(MM) or 30(PB) annuity runs out. Lotteries purchase annuities it's not magic. If you have the cash (take the cash prize) you can set up annuities or have diverse trusts. It would be your choice. If you can't handle money at all and take the lotteries annuity plan on either dying before the annuity runs out or get a very rude awaking when that last check comes and you didn't save anything. With perpetual annuities you don't have to save since the money just keeps coming.

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          Sparta, NJ
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          July 9, 2005
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          Posted: October 13, 2005, 9:35 pm - IP Logged

          I see no advantage of annuity over cash. Whatever you can make happen with annuity, you can make happen with cash - they both start from the same baseline. The variable from the baseline is the difference. You can chose to have zero control on what happens, sit back and pay whatever fees and taxes the Government dictates, and see a hundred million in tax (close to it) disappear. Or you can get the cash, hire people a zillons times more savy than a civil servant (nothing against them personally) and be responsible for your own fate.

          Ask Bill gates, Donald Trump, or any one else in the Fortune 500, if their first choice is to turn their money over to the Government for the rest of their lifes - and forfet all control. Ask them if that would be the smartest move. You can bet your anties smelly panties they would never go for that!

          Cheers

          |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

          I only trust myself - and that's a questionable choice

            BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
            Magnolia, Delaware
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            Posted: October 13, 2005, 9:35 pm - IP Logged

            I have said it once before and I'll say it again! Why in God's name would anyone take an annuity for? I want my dollars while they are valued as close to a dollar as they can be today. What is meant by that is, the dollars value changes all the time. Today it's worth .76 cents and tomorrow it could be only worth .66 cents, which would you want it to be worth? You see when you take an annuity today the dollar is worth .76 cents. But the dollar could be worth a lot less even 5 years down the road (.69 cents).

            Take the cash while the dollar is worth the .76 cents today, or your going to come to the realization that the dollar of tomorrow is steadily losing value on the world markets and is only worth half what it was when you won the lottery 30 years before! Be smart and dollar wise, not greedy! 

            Keep dreaming the impossible dream, it just may come true! Thumbs Up

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              Sparta, NJ
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              Posted: October 13, 2005, 9:42 pm - IP Logged

              i wish i could spit it, but if i couldn't i'd take the cash

              You CAN split it.

              Get the cash. Put half into the same system the state does - they don't have exclusivity to investment companies. The rate may be a little lower, because the investment is lower, but it is the same difference. I have dealt with a lot of "rich" people and they could find their butt if you placed both their hands on it. It doesn't take a mental giant to make money, it only takes money to make money. Banks are full of people who will help you stay rich; thats how they make their bonus money.

              Cheers

              |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

              I only trust myself - and that's a questionable choice

                konane's avatar - wallace
                Atlanta, GA
                United States
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                Posted: October 13, 2005, 9:49 pm - IP Logged

                Big Grin I would choose cash.  Get it while the getting is good.  You'll never know what can happen.  They can go bankrupt or something.  I'm financial literate, I think I could handle it.   

                 

                                I Agree!

                Good luck to everyone!

                  sirbrad's avatar - Lottery-062.jpg
                  PA
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                  October 6, 2005
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                  Posted: October 13, 2005, 11:57 pm - IP Logged

                  The withholding rate of 25 percent is what they're required to withhold from you when you get paid.  The top tax rate of 35 percent is what you're required to pay by April 15th when you file your annual return.  If less than 35 percent was withheld, you have to send in the difference with your return.  For the latest tax rates, check here:

                  http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=367 

                  The state income tax in Virginia is 5.75 percent.  Most state have income tax rates above 5 percent.

                  http://www.taxadmin.org/fta/rate/ind_inc.html

                  Other states compensate by having much higher real estate tax rates or sales taxes.

                   

                  I am not too sure about how taxes would work for that. Are you saying you would have to pay 35% of your income again after the 25% is withheld? As I said in another thread that is 60%! Say you won $100 million, and after taxes you had about $75 million. Would you then have to give up 35% of that the following April? ($26 million) Is this a one time payment for the taxes, or every year 35%? If so that is  a crock of BSCan you explain in more detail how the taxes are charged, and how much? In my state there is no state, or local tax on lotteries. Seems as though these jackpots really are nothing more than overinflated lies.

                    dvdiva's avatar - 8ball

                    United States
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                    Posted: October 14, 2005, 12:15 am - IP Logged

                    The withholding rate of 25 percent is what they're required to withhold from you when you get paid.  The top tax rate of 35 percent is what you're required to pay by April 15th when you file your annual return.  If less than 35 percent was withheld, you have to send in the difference with your return.  For the latest tax rates, check here:

                    http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=367 

                    The state income tax in Virginia is 5.75 percent.  Most state have income tax rates above 5 percent.

                    http://www.taxadmin.org/fta/rate/ind_inc.html

                    Other states compensate by having much higher real estate tax rates or sales taxes.

                     

                    I am not too sure about how taxes would work for that. Are you saying you would have to pay 35% of your income again after the 25% is withheld? As I said in another thread that is 60%! Say you won $100 million, and after taxes you had about $75 million. Would you then have to give up 35% of that the following April? ($26 million) Is this a one time payment for the taxes, or every year 35%? If so that is  a crock of BSCan you explain in more detail how the taxes are charged, and how much? In my state there is no state, or local tax on lotteries. Seems as though these jackpots really are nothing more than overinflated lies.

                    Judging from that quote I would hope you would hire a pro after winning. It's 25% withheld. Since the current Federal rate is 35% that would mean you would own 10% later (on April 15). Thus we can see that 35 - 10 is 25. That should be simple math. Since it is very unlikely you will have a lot of deductions the first year the IRS could hit you with penalties for not giving them the full 35% at a quarterly. Since most W2 wage slaves don't have to fill out quarterlies and most of the weathy do the IRS will not consider that you just didn't know any better. Hence the need for Professionals. You would also get hit with what ever state taxes there are in the state the ticket was purchased or possibly the state you live in.  The 25% is only the ATM which may be going away shortly. Income tax will not. If you get an annuity expect to pay 35% a year and have that amount go up (how much depends on which party is in power).

                    This isn't Europe or Canada where you get the money tax-free and in cash. The pots are mostly just marketing since the post tax cash amount is far less than the advertised amount. The reason why the rich get rich is they have investments and a change in wealth is not taxed, just income. The two can be mutually exclusive. If you get the money in cash you are only hit once with tax, after that you can grow your wealth like the rest of the rich. Or if you are from WV just spend it on booze and strippers.


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                      Posted: October 14, 2005, 12:22 am - IP Logged

                      If you're going to take the lump sum, it doesn't make much sense to put it back into an annuity.  Because of the low interest rates, they're not paying much more than 4-4.5 percent for guaranteed rates.  In addition, once you place it in the annuity, you can't take out your principal without suffering heavy surrender charges that range 3 to 8 percent.

                        sirbrad's avatar - Lottery-062.jpg
                        PA
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                        Posted: October 14, 2005, 3:45 am - IP Logged

                        Of course I would hire professionals, who in their right mind wouldn't? But it seems that your winnings will be going through a lot of hands before you will able to enjoy them, but they try and mask this with false jackpot amounts, lies, and deceit. I just think it is ridiculous that one beats such great odds, only to have a line others taking their slices of the big pie.

                        Some may not think that the constant harassment from the IRS would not be worth the windfall, not to mention everyone else. I don't know a lot about the taxes, but I do know about investing. I would rather be able to just pay one time, and be done with it.

                          Shawnintennesse's avatar - British Pint_414_.jpg
                          Springfield,Ohio
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                          Posted: October 14, 2005, 8:34 am - IP Logged

                          Of course I would hire professionals, who in their right mind wouldn't? But it seems that your winnings will be going through a lot of hands before you will able to enjoy them, but they try and mask this with false jackpot amounts, lies, and deceit. I just think it is ridiculous that one beats such great odds, only to have a line others taking their slices of the big pie.

                          Some may not think that the constant harassment from the IRS would not be worth the windfall, not to mention everyone else. I don't know a lot about the taxes, but I do know about investing. I would rather be able to just pay one time, and be done with it.

                          Theres no way to pay just one time and be done with it. Cause your taxed on that money every year you have it.

                          And if you make money with the money. They want some of that too..

                          If it weren't for Vtracs and STXS where would we be?

                            sirbrad's avatar - Lottery-062.jpg
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                            Posted: October 14, 2005, 8:59 am - IP Logged

                            Of course I would hire professionals, who in their right mind wouldn't? But it seems that your winnings will be going through a lot of hands before you will able to enjoy them, but they try and mask this with false jackpot amounts, lies, and deceit. I just think it is ridiculous that one beats such great odds, only to have a line others taking their slices of the big pie.

                            Some may not think that the constant harassment from the IRS would not be worth the windfall, not to mention everyone else. I don't know a lot about the taxes, but I do know about investing. I would rather be able to just pay one time, and be done with it.

                            Theres no way to pay just one time and be done with it. Cause your taxed on that money every year you have it.

                            And if you make money with the money. They want some of that too..

                            I was referring to the 25% withheld, and via a lump sum. But that is what I am trying to figure out, how much would those taxes be per year? What percentage? Using say a $100 million lump sum? Would the interest generated be enough to cover the yearly taxes, and taxable interest easily? So as not to lower the principle?

                              Shawnintennesse's avatar - British Pint_414_.jpg
                              Springfield,Ohio
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                              Posted: October 14, 2005, 9:05 am - IP Logged

                              Of course I would hire professionals, who in their right mind wouldn't? But it seems that your winnings will be going through a lot of hands before you will able to enjoy them, but they try and mask this with false jackpot amounts, lies, and deceit. I just think it is ridiculous that one beats such great odds, only to have a line others taking their slices of the big pie.

                              Some may not think that the constant harassment from the IRS would not be worth the windfall, not to mention everyone else. I don't know a lot about the taxes, but I do know about investing. I would rather be able to just pay one time, and be done with it.

                              Theres no way to pay just one time and be done with it. Cause your taxed on that money every year you have it.

                              And if you make money with the money. They want some of that too..

                              I was referring to the 25% withheld, and via a lump sum. But that is what I am trying to figure out, how much would those taxes be per year? What percentage? Using say a $100 million lump sum? Would the interest generated be enough to cover the yearly taxes, and taxable interest easily? So as not to lower the principle?

                              I guess it would all depend on the person how much those taxes would be. It would be dependant on investments. If there were IRA's,CD's.

                              If you put portions into those your not taxed on that.

                              I'm sure theres other ways to get around them as well. You would defiantly need a financial adviser.

                              If it weren't for Vtracs and STXS where would we be?