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Saturday's PB Win

Topic closed. 15 replies. Last post 10 years ago by CA LotteryGuy.

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Wisconsin
United States
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June 3, 2003
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Posted: January 28, 2007, 3:45 pm - IP Logged

Saturday's Powerball win in Arizona is the absolutely perfect Jackpot hit and congratulations to the lucky ticket holder.

15 Million Powerball jkpt (7M cash), is just what a person needs to retire, buy all the toys they desire, a big new home, (and why not a yellow Humvee every other year?) ... and spend the rest of their lives traveling to distant places around the globe.

Sure, it's fun to occasionally chase the wild and crazy stratospheric rollover levels, but as I have chanted before ... a nice, neat, $15M hit (whether annuity or cash) is perfect!

... just perfect :)

... the lottery never fails to surprise!
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    Morrison, IL
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    May 13, 2004
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    Posted: January 28, 2007, 6:22 pm - IP Logged

    Yes, especially since the press will be all over the $254 million winner and off the $15 million winner. :-)

      guesser's avatar - Lottery-017.jpg

      United States
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      Posted: January 28, 2007, 6:35 pm - IP Logged

      I guarantee you if I won 15 mill the LAST thing I'd do is buy a big house and rotate cars all the time, besides, if you take the cash, you are getting closer to 7 or 8 mill after taxes.  That's enough.

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        iowa
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        Posted: January 28, 2007, 9:46 pm - IP Logged

        On a $15 million jackpot the cash value is only $7 million before taxes. Just thought you might want to recalcuate that posting. However, you are correct in that you would be in financially dire straits if you spent the money as the previous poster had suggested.

          guesser's avatar - Lottery-017.jpg

          United States
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          Posted: January 28, 2007, 10:06 pm - IP Logged

          On a $15 million jackpot the cash value is only $7 million before taxes. Just thought you might want to recalcuate that posting. However, you are correct in that you would be in financially dire straits if you spent the money as the previous poster had suggested.

          'only $7 million before taxes.'

          You sure about that ?

          Taxes will take between 45 and 55%, so 7 or 8 million IS correct. 

            weshar75's avatar - Lottery-042.jpg
            Mcminnville, Oregon
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            Posted: January 28, 2007, 10:39 pm - IP Logged

            If you are talking about taking the annuity for 30 graduated annual payments.  Then $15 million annuity is $7 million to $8 million over 30 years after taxes.  But if you choose the cash option on a $15 million annuity prize the cash on hand is $7 million.  After taxes it is going to be around $3.5 million roughly.-weshar75

              twisted's avatar - underground
              New Jersey
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              Posted: January 28, 2007, 10:46 pm - IP Logged

              'only $7 million before taxes.'

              You sure about that ?

              Taxes will take between 45 and 55%, so 7 or 8 million IS correct. 

              For Powerball the cash value is usually around 45-48% of the annuity.  If you check the Powerball website right now you'll see that the cash value is only $7 million (46.7% of annuity).  For the previous jackpot it was $7.1 million.  

              After taxes you'll have around half of the cash value (in most states).  I live in a state that doesn't tax lottery winnings so if I won I would only pay federal tax on my winnings (Highest tax bracket: $97,653.00 plus 35% of anything over $336,550).

                Guru101's avatar - rw6jhh
                Indiana
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                Posted: January 28, 2007, 11:55 pm - IP Logged

                The cash value is before taxes.

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                  New Jersey
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                  Posted: January 29, 2007, 10:36 am - IP Logged

                  Saturday's Powerball win in Arizona is the absolutely perfect Jackpot hit and congratulations to the lucky ticket holder.

                  15 Million Powerball jkpt (7M cash), is just what a person needs to retire, buy all the toys they desire, a big new home, (and why not a yellow Humvee every other year?) ... and spend the rest of their lives traveling to distant places around the globe.

                  Sure, it's fun to occasionally chase the wild and crazy stratospheric rollover levels, but as I have chanted before ... a nice, neat, $15M hit (whether annuity or cash) is perfect!

                  ... just perfect :)

                  This sounds like a formula for going broke, as so many lottery winners do.

                  It would be better to live an ordinary, comfortable, middle class existence  on the interest, quietly.

                    rundown99's avatar - cigar

                    United States
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                    Posted: January 29, 2007, 10:42 am - IP Logged

                    Saturday's Powerball win in Arizona is the absolutely perfect Jackpot hit and congratulations to the lucky ticket holder.

                    15 Million Powerball jkpt (7M cash), is just what a person needs to retire, buy all the toys they desire, a big new home, (and why not a yellow Humvee every other year?) ... and spend the rest of their lives traveling to distant places around the globe.

                    Sure, it's fun to occasionally chase the wild and crazy stratospheric rollover levels, but as I have chanted before ... a nice, neat, $15M hit (whether annuity or cash) is perfect!

                    ... just perfect :)

                    The only perfect jackpot hit is an anonymous jackpot hit.

                    Smart lottery winners form trust to claim their winnings.  They send an attorney to the lottery headquarters to claim the prize in trust, so that ONLY the name of the trust is revealed.  And they tell NO ONE, especially relatives.

                    If you ever win a lottery and you are single, the only person you should ever marry is someone who was truly in love with you BEFORE you won the jackpot!

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                      Greenwich, CT
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                      Posted: January 29, 2007, 10:45 am - IP Logged

                      I agree with the original post.  This was a perfect jackpot hit.  I'm sure most people won't even realize that it was hit again.

                      Not tough to duck the radar when you weren't even on the screen to begin with.

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                        California
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                        October 1, 2006
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                        Posted: January 29, 2007, 12:04 pm - IP Logged

                        Some thoughts on this “perfect” jackpot:

                        Yes, there will be a lot less interest by the media for this winner versus the previous winner of $254 million in Missouri.  However, the Arizona Lottery will still do its best to promote their winner and he/she should get a fair amount of attention locally.

                        Regarding the amount of winnings, here is what I came up with:

                                  Annuity Option:  After Federal taxes (based upon 2007 tax rates) of roughly 33% for the first 7 years and 35% thereafter and State taxes of 5% the winner would get a little over $9 million spread out over 30 graduated payments.  Powerball has a graduated payment schedule that increases 4% per year.  This comes out to after taxes around $165,000 the first payment and around $500,000 for the last payment.

                                    Cash Option:  based upon a $7 million cash option and with the tax rates of 35% Federal and 5% State the winner would net out after taxes $4.2 million. 

                        Whether or not I would buy a new home, travel around the world and purchase a new car every year that remains to be seen.  Whether I chose cash or annuity, I would follow the path of living a very quiet middle class life, with a few niceties thrown in every now and then. 

                        Also, any jackpot I win would be “perfect.”

                          Guru101's avatar - rw6jhh
                          Indiana
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                          Posted: January 29, 2007, 4:02 pm - IP Logged

                          It depends on which state you live in. For example I live in Indiana, so this is how I would figure out how much the actual amount of a $15 Million jackpot would be if I chose the cash option($7 Million).

                          1. Figure out how much state tax is taken out, Indiana is 3.4%:

                          $7,000,000 * 0.034 = $238,000

                          2. Figure out how much federal tax is taken out(35%):

                          $7,000,000 * 0.35 =  $2,450,000

                          3. Add them together:

                          $2,450,000 + $238,000 =  $2,688,000

                          4. Subtract from cash option:

                          $7,000,000 - $2,688,000 = $4,312,000

                          So I would get $4,312,000 after taxes for choosing the cash option.

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                            Morrison, IL
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                            May 13, 2004
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                            Posted: January 29, 2007, 9:20 pm - IP Logged

                            Some thoughts on this “perfect” jackpot:

                            Yes, there will be a lot less interest by the media for this winner versus the previous winner of $254 million in Missouri.  However, the Arizona Lottery will still do its best to promote their winner and he/she should get a fair amount of attention locally.

                            Regarding the amount of winnings, here is what I came up with:

                                      Annuity Option:  After Federal taxes (based upon 2007 tax rates) of roughly 33% for the first 7 years and 35% thereafter and State taxes of 5% the winner would get a little over $9 million spread out over 30 graduated payments.  Powerball has a graduated payment schedule that increases 4% per year.  This comes out to after taxes around $165,000 the first payment and around $500,000 for the last payment.

                                        Cash Option:  based upon a $7 million cash option and with the tax rates of 35% Federal and 5% State the winner would net out after taxes $4.2 million. 

                            Whether or not I would buy a new home, travel around the world and purchase a new car every year that remains to be seen.  Whether I chose cash or annuity, I would follow the path of living a very quiet middle class life, with a few niceties thrown in every now and then. 

                            Also, any jackpot I win would be “perfect.”

                            Heck, a $200,000 PB winner would probably generate a fair amount of local attention.


                              United States
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                              June 5, 2002
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                              Posted: January 30, 2007, 9:59 am - IP Logged

                              Some thoughts on this “perfect” jackpot:

                              Yes, there will be a lot less interest by the media for this winner versus the previous winner of $254 million in Missouri.  However, the Arizona Lottery will still do its best to promote their winner and he/she should get a fair amount of attention locally.

                              Regarding the amount of winnings, here is what I came up with:

                                        Annuity Option:  After Federal taxes (based upon 2007 tax rates) of roughly 33% for the first 7 years and 35% thereafter and State taxes of 5% the winner would get a little over $9 million spread out over 30 graduated payments.  Powerball has a graduated payment schedule that increases 4% per year.  This comes out to after taxes around $165,000 the first payment and around $500,000 for the last payment.

                                          Cash Option:  based upon a $7 million cash option and with the tax rates of 35% Federal and 5% State the winner would net out after taxes $4.2 million. 

                              Whether or not I would buy a new home, travel around the world and purchase a new car every year that remains to be seen.  Whether I chose cash or annuity, I would follow the path of living a very quiet middle class life, with a few niceties thrown in every now and then. 

                              Also, any jackpot I win would be “perfect.”

                              It sounds like the federal tax rate right now, according to you, is 35% if you take lump sum, but 33% for annuity. Better read it again.