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powerball rolls

Topic closed. 14 replies. Last post 10 years ago by guesser.

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BILOXI, MISSISSIPPI
United States
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August 3, 2005
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Posted: January 21, 2007, 12:41 am - IP Logged

$240 million

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    Morrison, IL
    United States
    Member #4657
    May 13, 2004
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    Posted: January 21, 2007, 1:19 am - IP Logged

    Powerball's cash jackpot is $114 million. This is the first time its pretax cash option made it over $100 million since April 12, 2006. The last time Mega Millions' cash jackpot was over $100 million was on April 18, 2006.

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      New Member
      Shoreview, MN
      United States
      Member #32671
      February 15, 2006
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      Posted: January 21, 2007, 1:22 am - IP Logged

      Cash option in MN after taxes is now slightly over $77 million.

       Put that in a good money market, such as Washmutual or HSBC direct and you can get 5+% annual interest.

       That is about $3.85 million gross first year interest.

       year 1 annuity payment is nearly $4.3 million.

      Thus the smart thing to do is take the annuity payment, live on a comfortable $100k/year and invest the rest into the money market fund.

       Then divide the net interest each year into 2. Take one half and reinvest back into money market. Take second half and invest into high quality small cap stocks, such as Motley Fool's Hidden Gems,(27% last year on 16 of their picks).

       In this way you can live comfortably while growing richer each passing year. What's better your principle investment grows exponentially due to increases into the money market fund.

      On top of that, over the long term small cap stocks provide the best performance.

      Not only will such a plan provide for comfort today, but will gurantee insance wealth in the future, when such wonder tech as nano-medicine will allow the doubling or tripling of the human life span.

      Worst case scenario: All your stocks become worthless,

      Because you invested only half of the net interest from the money market fund, you still grow richer each year!

      Under such a system you can't lose! You either grow from rich to crazy rich slowly, or very quickly, but either way you are set!

       Now if only I could win the damn jackpot:)

        Guru101's avatar - rw6jhh
        Indiana
        United States
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        January 7, 2007
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        Posted: January 21, 2007, 4:54 pm - IP Logged

        I'm gonna win!!!!!!!!!!!!!!!!! Ha ha!Dance

          guesser's avatar - Lottery-017.jpg

          United States
          Member #41383
          June 16, 2006
          1969 Posts
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          Posted: January 21, 2007, 11:40 pm - IP Logged

          Cash option in MN after taxes is now slightly over $77 million.

           Put that in a good money market, such as Washmutual or HSBC direct and you can get 5+% annual interest.

           That is about $3.85 million gross first year interest.

           year 1 annuity payment is nearly $4.3 million.

          Thus the smart thing to do is take the annuity payment, live on a comfortable $100k/year and invest the rest into the money market fund.

           Then divide the net interest each year into 2. Take one half and reinvest back into money market. Take second half and invest into high quality small cap stocks, such as Motley Fool's Hidden Gems,(27% last year on 16 of their picks).

           In this way you can live comfortably while growing richer each passing year. What's better your principle investment grows exponentially due to increases into the money market fund.

          On top of that, over the long term small cap stocks provide the best performance.

          Not only will such a plan provide for comfort today, but will gurantee insance wealth in the future, when such wonder tech as nano-medicine will allow the doubling or tripling of the human life span.

          Worst case scenario: All your stocks become worthless,

          Because you invested only half of the net interest from the money market fund, you still grow richer each year!

          Under such a system you can't lose! You either grow from rich to crazy rich slowly, or very quickly, but either way you are set!

           Now if only I could win the damn jackpot:)

          How much is enough ?

          I honestly am not picky - I'd take 240 mill, or 15 mill, either amt I can retire on, and so can you.

          If I were to win it, I'd put some in investments, spread some across several bank accounts (multiple FDIC insurances then), and I'd put 5-6 mill in a place I can't get to it for 5 years, then I'd spend the rest, and create some charitable trusts.

          Then I'm going to enjoy spending the rest of it, and I'm NOT going to babysit it, life is too short, the LAST thing I want to do is have to play money manager every day.

          I would not live like a King, I would not buy an island or a mansion or a private jet.

          I'd go ENJOY it. 

            weshar75's avatar - Lottery-042.jpg
            Mcminnville, Oregon
            United States
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            December 13, 2003
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            Posted: January 21, 2007, 11:59 pm - IP Logged

            I agree with you Guesser about having any Powerball jackpot.  Big or small.  I would just like to be able to say I won and had some fun with the money and did what I wanted with the jackpot.-weshar75

              grengrad's avatar - nw rogue.jpg
              Raleigh
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              January 17, 2007
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              Posted: January 22, 2007, 1:13 am - IP Logged

              I think if I won, and took the cash my formula would be something like: 

              10% Spend on One-Time gifts to family and friends (I cannot emphasize one-time enough)
              3% Spend in first year on self
              3% in self-controlled portfolio so I can have some fun investing without a large risk. 
              3% in Gold stored abroad
              11% in Cash in Euros stored abroad
              6% in Cash in GBP stored abroad
              4% in Cash in USD stored in the USA for a rainy day
              20% Long Term Bond Funds (Spread across 4 major investment firms)
              20% Long Term Multinational Funds (Spread across 4 major investment firms)
              20% Mid Term Balanced Equity Funds (Spread across 4 major investment firms)

              Live off of 40% of investment return per annum. Reinvest 50% per annum split between funds.  Save 10% per annum into other currencies.

              Self Controlled port and Cash in USD can be used at anytime for anything at my disgression.

              Funds would never be touched and be allowed to grow and grow to provide a nice estate upon my death.

              Cash in foreign currencies would be saved for an emergency.

               

              My concern with taking the cash is that it makes you a much larger target, than if you "only" have a couple million a year coming in from an annuity. Plus, it would be a lot less stress in first few years to find investments and to protect your money. Additionally, since I am only 25 years old, so I am rather likely to live thru the duration of the annuity. If I took the annuity, my investment plan would be similar to the above, but I would do very little investing for the first 3 years while I got thru the major purchases, and family gifts.

              My concern with taking the annuity is that the dollar is not that hot right now, and you could probably beat the annuity, simply by putting a fair share of your money in other currencies until the dollar stabilizes, and if our dollar did not stabilze, you could always move to another country with the money you have saved in their currency.

                guesser's avatar - Lottery-017.jpg

                United States
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                June 16, 2006
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                Posted: January 22, 2007, 1:50 am - IP Logged

                Grengrad, you think too much.

                At 25, how much money will it take for you to live the rest of your life, let's say to age 85, at $75,000/year.

                The answer is 4.5 mill.

                So take the cash, put 4.5-6 mill in some SAFE things and be done with it, then relax and enjoy the rest.

                You can do what you outline above, but to me, if I did that, it reeks of having to babysit it every day, and I don't want to do that.

                I would go to Fidelity and Schwab, throw it in 4-6 funds that do kinda what you want above, and be done with it. 

                I won't do the annuity because, for one, I'm 48, for another, I won't make it to retirement age (fact), so I'm going to put away enough to live on *IF* I live to see retirement, and then I'm going to have fun with all the rest of it.  IMO investing at 25 is OK, investing at 48 is growing a bank account for someone else to enjoy, and not me. 

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                  New Jersey
                  United States
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                  September 4, 2005
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                  Posted: January 22, 2007, 8:10 am - IP Logged

                  Grengrad: 

                   

                  Yours is one of the best and most sensible posts I've ever seen here.

                  My only disagreement is that I would take the cash because I don't expect the dollar to be worth that much in the long term.  The national policy has been a drinking binge and someone needs to pay the bill.    Thus I'd have a hell of a lot more overseas.  I'd also buy some real estate in distressed markets.

                  I'd learn to say "no" to people who wanted big cash "gifts."    But I would help people with the investment income.  People who are angry about this wouldn't be my real friends anyway

                  But the main idea, live off your investments, is excellent. 

                  The other thing is to drop out of sight.

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                    Morrison, IL
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                    Posted: January 22, 2007, 8:15 am - IP Logged

                    I'd definitely have to invest a lot in gold if I won Powerball, due to the dollar's likely demise in the next 30 years. Gold is the only stable "currency," and it does not appreciate or depreciate - only the currencies used to purchase it do.

                      grengrad's avatar - nw rogue.jpg
                      Raleigh
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                      January 17, 2007
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                      Posted: January 22, 2007, 3:49 pm - IP Logged

                      Fair enough. You have convinced me that cash is better.

                      Now, I just need to buy the winning ticket.

                        guesser's avatar - Lottery-017.jpg

                        United States
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                        Posted: January 23, 2007, 2:17 am - IP Logged

                        Fair enough. You have convinced me that cash is better.

                        Now, I just need to buy the winning ticket.

                        I DO like your investment strategy, but if you had 'that much' money, you will be fine as long as you don't go whacko.

                         

                        As far as my comments about spending time babysitting it - that's fine - IF you want that to be your new, full-time job. My investment strategy is simple - when my investments (stocks) make 20%, I SELL and go into cash with them, and then just kinda wait for the next thing I know about.   I made many a mistake sitting in a stock after it goes up 25% or more - just waiting for it to go up 50% - fact is few do, so I learned to be happy with 20% over 6-8 months.

                        It sounds like you already know what you would invest in, so go for it, and hang stop/loss orders on all of them, when they hit that number, they sell and go into cash, that way you don't have to babysit them every minute of the day.  I have had stocks go up 600% in the morning, and down 650% 4 hours later - all in the same day.  Unless you are watching the ticker, you missed it.

                        I don't micromanage my investments anymore - it's all automated, and it works great. 

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                          Atlanta
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                          May 24, 2005
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                          Posted: January 23, 2007, 9:48 am - IP Logged

                          Hey XMSR3....are you serious? If you won 240M, you would only live on 100k per year?????????????? Wake up and smell the coffee....I would bet 100K that you would not do that if you truly had it in your hands. The temptation would be wayyyyyy too much. Plus, I guess that meeans you would give nothing to some sort of charity and keep it all to yourself? Sorry, just a thought after reading your post. Good luck to all in a Powerball state.

                            grengrad's avatar - nw rogue.jpg
                            Raleigh
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                            Posted: January 23, 2007, 1:51 pm - IP Logged

                            I have played the market a fair amount, and I enjoy it, which is why my formula has part of the money available just for me to play with, which would not be a full time job. The majority of the money would be in funds that were not managed by me and would only require a minimal amount of time to manage. The way I see it, if I won the lottery, I would want there to be enough money for my grandchildren to be wealthy, so I would be willing to put a little time into it to try to make that more likely.

                            As for the market: A rule I like to keep in mind is to never buy shares of a stock that you could not convince a friend to buy. Too many people buy/sell on impulse. Also, never hold a stock simply because you are down on it and want to get your money back. If you would not buy the stock again under the current conditions, then it is time to sell.

                              guesser's avatar - Lottery-017.jpg

                              United States
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                              Posted: January 23, 2007, 3:16 pm - IP Logged

                              Hey XMSR3....are you serious? If you won 240M, you would only live on 100k per year?????????????? Wake up and smell the coffee....I would bet 100K that you would not do that if you truly had it in your hands. The temptation would be wayyyyyy too much. Plus, I guess that meeans you would give nothing to some sort of charity and keep it all to yourself? Sorry, just a thought after reading your post. Good luck to all in a Powerball state.

                              'Live on' and 'spend' are two totally different things.

                              I have no problems 'living on' 100k a year: I buy my $400,000 house - it's paid for.  Furnishings - paid for.  Cars - paid for.

                              So what I now 'live on' is what it takes to pay house taxes, phone, cell, gas, electricity, insurance, cable tv and so on.

                              And from another posting, I'm not into making my children or grandchildren 'wealthy', it leads to 'lazy'. I'll fund their education, but beyond that, they can earn a living just like the rest of us did.  I'd also only fund their education if their GPA is above 3.0 - which is nearly impossible to have a GPA UNDER 3.0 anymore. Call in incentive.   And it's a better offer than one they have - which is no financial help at all.

                              I have very rich uncles and a multi-millionaire brother - none of them have ever offered to help me in any way, and I never expected them to, but the offer would have been thoughtful.