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Best Method to Collect - Powerball

Topic closed. 24 replies. Last post 11 years ago by sirbrad.

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Zoozie's avatar - back
South Fort Myers
United States
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November 23, 2005
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Posted: February 18, 2006, 9:56 am - IP Logged

Since we are all on the discussion of the Powerball today, if you win tonight... how are you going to accept your winnings and why?

Cash Option or 30 Year Annuity

Cash Option - you have to pay taxes on the lump sum... but you are also going to have to pay taxes on the interest you receive each year from your bank accounts.

30 Year Annuity - Pay taxes each year on the check you receive each year.

If I do win the powerball tonight *grin*, I just want to know the best way to get the money tax wise.

Zoozie  Dance

 

"Whatever the mind can conceive and believe, it can achieve"
Napoleon Hill

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    Sparta, NJ
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    Posted: February 18, 2006, 10:45 am - IP Logged

    Get the money - where is the confusion?  Bird in the hand thing.  How do you know what the government people have in store for you tomorrow?  Do you think the Tax Cutting George Bush will be around forever?  Do you really believe a Democrat won't raise taxes as soon as possible?  Look what Billie-Bob Clinton did.  Promised no taxes, then raised all taxes - including death tax back for six months.

    The state of New Jersey is whinning about being almost bankrupt - because of corrupt politicians, not its residents. Residents don't bankrupt a state, the elsected officials do.  They have to no state tax on lottery's played and won in New Jersey.  How long do you think that will last?  Go annuity, and the state can add taxes, the county can add taxes, the city can add taxes, and the feds can add taxes.  You?  You would have zero option to get away.  They got you by the small hairs. Tax, tax, tax, then tax again.

    GET THE CASH AND RUN!

    Cheers

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

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

      Zoozie's avatar - back
      South Fort Myers
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      Posted: February 18, 2006, 10:48 am - IP Logged

      Thanks Chewie for that enlightening post.  Yes, I figured take the lump sum.

      "Billy-Bob Clinton" - I laughed so hard on that one...

      Zoozie  Dance

       

      "Whatever the mind can conceive and believe, it can achieve"
      Napoleon Hill

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        Baton Rouge, LA
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        May 7, 2004
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        Posted: February 18, 2006, 12:56 pm - IP Logged

        CNN published a list of states by state and local tax liability. If you win a big jackpot and don't want to give too much of it away, you can relocated to one of the states at the bottom of the list. You can't escape federal taxes, but it is possible to lower your state and local taxes.

        Here is the list:

        http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html

          Zoozie's avatar - back
          South Fort Myers
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          Posted: February 18, 2006, 1:08 pm - IP Logged

          Yep if I win the powerball, Indiana will only see the dust I leave behind moving back to Florida!  They are going to get the LEAST amount of money I have to give the state of Indiana.  Florida does not have state taxes, only federal.  Many tax benefits there.

          Zoozie  Dance

           

          "Whatever the mind can conceive and believe, it can achieve"
          Napoleon Hill

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            Palm Harbor, FL
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            Posted: February 18, 2006, 1:23 pm - IP Logged

            reading on powerball.com.  And reading the tax info and how it works...If you take the lump sump..you will get maybe around $90 mil. That is still alot of $$$, but why so many taxes? You go from winning $365 mil to leaving w/ $90 mil What?. But it also states if you take annuity, you also earn interest. That will be a tough 60 days to think of which option to take

              hypersoniq's avatar - 8ball
              Pennsylvania
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              Posted: February 18, 2006, 1:54 pm - IP Logged

              on a jackpot this big, I might be tempted to take the annuity (over 7 million a year), wait until a democrat is elected and sell the balance of the payments to one of those companies that does such a thing before the inevitable tax increase...

              the other scenario is to find out how much it would cost to buy supplimental insurance on about 100,000,000 and have it wired to an account all at once... they make you pick an account to wire the winnings to, I can't imagine letting all those millions go uninsured (1 bank only covers 100,000, CDARS covers 20 million, no federal program covers 100,000,000+)

              I'm truly torn... and I hope I am faced with that problem tonight ;-)

              Playing more than one ticket per game is betting against yourself.

                Dream's avatar - dragon1

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                Posted: February 18, 2006, 2:03 pm - IP Logged

                reading on powerball.com.  And reading the tax info and how it works...If you take the lump sump..you will get maybe around $90 mil. That is still alot of $$$, but why so many taxes? You go from winning $365 mil to leaving w/ $90 mil What?. But it also states if you take annuity, you also earn interest. That will be a tough 60 days to think of which option to take

                By taking the lump sum you usually get 1/3 of the advertised jackpot after taxes.


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                  Posted: February 18, 2006, 2:16 pm - IP Logged

                  Anybody who hits tonight's PB and chooses annuity should be forced to give back all the winnings LOL

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                    Sparta, NJ
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                    Posted: February 18, 2006, 2:21 pm - IP Logged

                    You get 1/3 because there is no huge amount.  It is a book keepers imagination.  The $365M doesn't happen until 26 years later.  The cash is the actual amount in the kitty the day of the drawing.  Wrong investment, or stock market crash, and you don't get $365M, you get leftover Turkey.

                    You don't put $100M into a bank like you do with your pay check; this is not a savings account that you have.  You can use the bank to disperse it to various investments.  Then when you need cash, your financial guy(s) tranfer it around to spendable money.  You start messing with amount of $50K on a regular basis and both the IRS and DEA are going to become your least lovable best friends.  You get an American Express Centurion Card and let your Executive Assistance, or Personal Assitant, or both, handle the water and other utility bills.  Adjust your attitude towards life.  You are no longer Joe Nobody, you are now a multi-millionaire.  You never stand in line for anything again.  You no longer fix leaky toilets.  You want a new television, your assistant calls some one who delivers and installs it.

                    Cheers

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

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

                      Zoozie's avatar - back
                      South Fort Myers
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                      Posted: February 18, 2006, 2:22 pm - IP Logged

                      That brings up an entirely different issue about putting your cash money in a bank, since a bank can not insure that large amount.  What are the options - divide your money up and put it into different banks?

                      Wonder what bank houses Bill Gates' money.... LOL

                      Zoozie  Dance

                       

                      "Whatever the mind can conceive and believe, it can achieve"
                      Napoleon Hill

                        Dream's avatar - dragon1

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                        Posted: February 18, 2006, 4:17 pm - IP Logged

                        The situation in the world is very unstable. Take the cash and be your own BOSS

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                          Iowa
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                          Posted: February 18, 2006, 8:26 pm - IP Logged

                          Okay, chewie you put a new perspective on the cash v. annuity argument that I hadn't considered.  As a lurker on the boards for the last few months and only posting in the last couple weeks, I have of course become Very familiar with CASH Only's views on the subject, but I still thought annuity would be a good way to go.  Thanks for the food for thought.

                           

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                            Sparta, NJ
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                            Posted: February 18, 2006, 8:38 pm - IP Logged

                            That brings up an entirely different issue about putting your cash money in a bank, since a bank can not insure that large amount.  What are the options - divide your money up and put it into different banks?

                            Wonder what bank houses Bill Gates' money.... LOL

                            Bill Gates actually has very little actual money.  His is virtual money.  If value is up, his is up, if it crashes, he is down.  Same as the old dot com problem.  Oh, by very little money,, I mean he does not have Billions is cash, he has Millions.

                            Cheers

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

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

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                              Sparta, NJ
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                              Posted: February 18, 2006, 8:47 pm - IP Logged

                              Gold People - Gold.  Has been a staple since the beginning of the barter system.  Money comes and goes like country's come and go.  Gold is always there.  Get gold bars, get gold coins. Get gold dust.  Use it for whatever cash is popular at the moment, or just spend it.  You win a hundred million or so, buy a couple of million in gold and stash it away in the wilderness of Colorado.  Couple thousand acres in Colorado would make it impossible to find.  If you loose everything, or governments collapse, you will have the stash of all stashes.  I have no doubt, numerous Fortune 500 people have a similar plan, or the same plan.  Its not about being fair, it is about ME! 

                              Cheers

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

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