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Win the jackpot...now what?

Topic closed. 25 replies. Last post 8 years ago by LckyLary.

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Espanola NM
United States
Member #72722
March 25, 2009
133 Posts
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Posted: March 25, 2009, 6:52 pm - IP Logged

Simply for FYI purposes. Let's say you win the jackpot.   What would be your immediate, short-term, and long-term activity

Obviously hiring professionals is likely a good idea to guide a novice.   My question is who should a jackpot winner hire.  A tax lawyer, a financial advisor, an accountant, some hybrid of the above, or none at all.       When it comes to money.....in order to avoid getting ripped off......what should be the going rate/retainer to pay these professionals.   A one time flat fee, a commission-based rate, an annual salary, or more incentive/tax reduction based approach?  Basically what is a good process and decision making process in choosing the folks that are gonna be entrusted with your funds?

Next....is the step to find ways to lighten your tax burden.  Obviously winning the jackpot stands to put you into the top fed income  long-term tax bracket which is hovering around 35%.   Add in your state portion and that becomes quite alot of money that Uncle Sam will receive.    For pure informational purpose, what is the best way to lighten the burden? Any general ideas and tips?

As a devout religious man...I plan on contributing 10% to my church.   Likely that would be considered a charitable contribution.   Would this noble act aid my efforts to soften my own personal tax burden?   

I plan on gifting amounts to immediate-close family members(siblings, parents, etc.).  I think the gift tax exclusion allows one to give 12,000 per person per yr.   I am fully aware of the gift tax advatages and disadvantages.

Perhaps I am too conservative or cheap....but I am not necessary the spending fool.  I want my winnings to last.

If I shall ever win.....my plans include finding suitable financial insitutions.  I would be a fool to deposit all my money into one bank.   Perhaps researching a min. of 5 sound banks and a solid investment firm. Then investing part of my winning(40%) in money market account and CDS. These conservative savings provide  a safe 5% annual return of interest that is more than enough to provide for my needs until retirement.

Then with 50% of my winnings I take a more daring but still relatively safe investment growth strategy.   A diversified mutual fund portfolio with limited stocks on the low-end.    Given the low economy we are in right....given time and past history shows a likely bounce and comfortable capital gains with stable dividend yields.

Then with the remaining 10%.  Perhaps this is how I spoil myself and my family.   Pay off debts.  Secure housing and land.   Vehicles and vacations to enjoy life.   Checking account and source of revenue for necessary expenses such as food, utilities, and bills.

How would you all rank my rather simple strategy.  Not bad for a 25 yr old SINGLE man with no children......right? What would you all do different?   Just for fun.

What are your plans? Discuss :)

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    United States
    Member #61232
    May 16, 2008
    126 Posts
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    Posted: March 25, 2009, 11:36 pm - IP Logged

    I'd hire a tax attorney/accountant.  Interview no less then 5 attorneys & accountants before you make your final decision on who you want to hire.  I'd skip the financial advisor.  You can learn everything they know by educating yourself on the various types of investments.  I'd probably spread the money amongst 3 different brokerages (Schwab, Fidelity, and Vanguard).

    Your tax attorney/accountant would be best qualified to answer your tax questions.

    I wouldn't bother much with CD's.  I'd invest 75% of it in tax free municipal bonds.  Some municipal bonds are paying 3.5-4% right now which is equivalent to about 6.5-7% CD rate.  Then 25% of it in the stock market.  I invest in the market now as a hobby (and it wouldn't be any different if I won).  I enjoy researching companies, their products/services, reviewing their balance sheets, and investing in the ones that best meet my goals and objectives.  I also enjoy tracking the performance of my investments.  

    I buy my tickets in a state that allows you to remain anonymous.  Like you I am not married and have no kids.  No one in my family would know (not even my own mother, she can't keep secrets).  I'd quit my job soon after I collect the winnings.  I probably wouldn't even tell my family that I quit because I don't really talk about my job with them now so I would have no reason to bring it up.  If the subject did come up I'd just casually say I haven't been working lately and been living off my investments.  They may wonder how I do it but they'll never know till after I'm dead and gone.

      Kaptainess's avatar - hiro bird.jpg

      United States
      Member #63356
      July 26, 2008
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      Posted: March 26, 2009, 12:26 am - IP Logged

      Get a large safe and get in all in cash, 20's and 50's.  No 100's.

      Take a life long vacation all over the world to places I always wanted to go before they blow up our planet.

      Insure that my sister has a nice large house and money in a trust that she can live on for the rest of her life.

      Give my brother one thin dime.

      Move to California - the part where they don't have earthquakes on the beach.

      Get a full body massage everyday head to toe, especially the toes.

      Hire a physical therapist to bend me everyday.

      Hire a cook that keeps me on a healthy diet.

      Keep a doctor handy on speed dial.

      Donate my current house to the homeless project - that should make my pain ** *** *** neighbors very happy.

      Look up a few people that could really use a hand up via a third party so they never knows who did it.  Don't want them to come back for more?

      Build the best workshop/studio on the planet and play all day with my clay, woodworking, painting, sewing, and beadwork.

      Will all of my leftover money and property to the Homeless Organization that I know.

      Yeah, I know, invest the money so that some nut won't come over in the middle of the night to crack the safe!  LoL!!!

        grandpajohn's avatar - Lottery-050.jpg
        williamsburg,ohio
        United States
        Member #71029
        February 17, 2009
        603 Posts
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        Posted: March 26, 2009, 1:40 am - IP Logged

        I know what I would want to do if I won but i would make sure first if it was the right way to go. I would make sure my two kids were taken care of maybe a house for them and even a car.Then come my three  grand kids i would want to set something up for there schooling what ever they wanted and since my two kids are still young enough to have maybe one or two more kids I would what to set aside for the furture grand kids.I would also have money for the wife and I could travel a little and as big of a sports fan I am I would want to get season tix of my fav.sports teams and events.But with all this I would put money in money mkts and savings.Just some things i would do.

          Pogo's avatar - wfl
          NC
          United States
          Member #29378
          January 1, 2006
          552 Posts
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          Posted: March 26, 2009, 1:56 am - IP Logged

          Get a large safe and get in all in cash, 20's and 50's.  No 100's.

          Take a life long vacation all over the world to places I always wanted to go before they blow up our planet.

          Insure that my sister has a nice large house and money in a trust that she can live on for the rest of her life.

          Give my brother one thin dime.

          Move to California - the part where they don't have earthquakes on the beach.

          Get a full body massage everyday head to toe, especially the toes.

          Hire a physical therapist to bend me everyday.

          Hire a cook that keeps me on a healthy diet.

          Keep a doctor handy on speed dial.

          Donate my current house to the homeless project - that should make my pain ** *** *** neighbors very happy.

          Look up a few people that could really use a hand up via a third party so they never knows who did it.  Don't want them to come back for more?

          Build the best workshop/studio on the planet and play all day with my clay, woodworking, painting, sewing, and beadwork.

          Will all of my leftover money and property to the Homeless Organization that I know.

          Yeah, I know, invest the money so that some nut won't come over in the middle of the night to crack the safe!  LoL!!!

          Sounds awesome, but I'll have to put all my money in the Brazilian Market then spend all my sweet time traveling and playing with my clay - couldn't agree more - so relaxing... Pogo

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            United States
            Member #54390
            August 17, 2007
            313 Posts
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            Posted: March 26, 2009, 4:04 am - IP Logged

            If I win, I'm moving to Nigeria.

              savagegoose's avatar - ProfilePho
              adelaide sa
              Australia
              Member #37136
              April 11, 2006
              3300 Posts
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              Posted: March 26, 2009, 11:18 am - IP Logged

              I dont know what to do, the fun begins once you win.

              2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

              keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                Dollar419's avatar - Lottery-050.jpg
                Santa Ana
                United States
                Member #71159
                February 20, 2009
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                Posted: March 26, 2009, 11:57 am - IP Logged

                1st of all, I would give 10% tithe to the church, hire the best attorney and accountant by referral of course

                Buy a brand new house, pay off all of my outstanding debts, try to help my immediate family as much as I can.

                Move to from California to Georgia because it is getting too expensive to live in CA.Hurray!

                  GamerMom's avatar - tails

                  United States
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                  April 21, 2008
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                  Posted: March 26, 2009, 1:51 pm - IP Logged

                  If you had your entire fortune in cash in a safe at your home it seems like the IRS would be knocking on your door to verify...

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                    Espanola NM
                    United States
                    Member #72722
                    March 25, 2009
                    133 Posts
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                    Posted: March 26, 2009, 2:45 pm - IP Logged

                    If you had your entire fortune in cash in a safe at your home it seems like the IRS would be knocking on your door to verify...

                    Why?   I thought the IRS only cares about income.....not what you do with afterwards.

                    Since MUSL already withholds 25%.   As long as you pay the estimated taxes(remaining 10%)....you would meet the IRS requirements for those in the 35% tax bracket.

                    That being said.....leaving cash inside a safe is not the brightest thing to do.    Cash is hard to track and once it is lost/stolen.....you can say goodbye to it.    At least with banks.....there is often a paper trail and FDIC insurance to protect you to an extent.

                      Billy9Fingers's avatar - Lottery-061.jpg
                      Cleveland
                      United States
                      Member #51182
                      March 31, 2007
                      16 Posts
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                      Posted: March 26, 2009, 6:41 pm - IP Logged

                      I'm prepairing even before the big jackpot even hits me.  I've been doing some research and came across this book called "Sudden Money," by Susan Bradley.    Its a what to do 'when" .....  When you inherit money, insurance policies, your now playing professional sports, lotteryies... etc.  From all that I can gather it would be money well spent up front.  As there are people who find themselves in these situations quite often.

                      Has anybody else heard of this book???

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                        San Diego, CA
                        United States
                        Member #58386
                        February 12, 2008
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                        Posted: March 27, 2009, 3:57 pm - IP Logged

                        First I go to VEGAS!

                         

                        After a two week vacation there, I come back and start educating myself on the stock market (more than I currently am.)  A lot of my money goes into a CDARS account which is a CD that is spread out over banks up to $100,000 each.  A lot would go into treasuries.  I send some of my money to a financial advisor that I trust and see what she can do with it.

                         

                        After that.  Find a cute and fun girl, start a family, and enjoy life.

                          GamerMom's avatar - tails

                          United States
                          Member #60535
                          April 21, 2008
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                          Posted: March 27, 2009, 6:52 pm - IP Logged

                          Why?   I thought the IRS only cares about income.....not what you do with afterwards.

                          Since MUSL already withholds 25%.   As long as you pay the estimated taxes(remaining 10%)....you would meet the IRS requirements for those in the 35% tax bracket.

                          That being said.....leaving cash inside a safe is not the brightest thing to do.    Cash is hard to track and once it is lost/stolen.....you can say goodbye to it.    At least with banks.....there is often a paper trail and FDIC insurance to protect you to an extent.

                          I'm sure they would want to verify you didn't give it all away so as to not miss out on their hefty gift tax.

                            hearsetrax's avatar - 0118

                            United States
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                            May 21, 2007
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                            Posted: March 27, 2009, 7:17 pm - IP Logged

                            Blue Thinking seriously giving thoughts to moving to the UK and or canada


                              United States
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                              November 14, 2008
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                              Posted: March 27, 2009, 7:33 pm - IP Logged

                              Sounds like a great plan!  I do one thing different, I would attend a college or university to educate myself on how to take care my money! I would not leave that in someone elses hand or to their opinions.