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Tax Strategies For Lottery Winners - Lump Sum vs Installments

Topic closed. 22 replies. Last post 6 years ago by weshar75.

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ca-dreamin*'s avatar - Lottery-065.jpg
Chicago
United States
Member #70678
February 8, 2009
889 Posts
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Posted: January 31, 2011, 8:44 pm - IP Logged

I would take the lump sum.

Just because this article was written by an "expert" doesn't mean he knows what's best for me or that I should follow his advice.

When it comes to installments I just keep thinking of Social Security. What happens when the State or  Gov etc decides they need to borrow from this (your) money. Never say never.......I think it could happen.

Just get me thru this so called life......

    dk1421's avatar - Lottery-024.jpg
    North Carolina
    United States
    Member #64582
    September 1, 2008
    347 Posts
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    Posted: January 31, 2011, 10:48 pm - IP Logged

    I would definitely take the lump sum. Last year (or two), my state "stole" the lottery money that was intended for schools to use for the regular budget while calling the state lottery "the education lottery".

    Truly, I think if they would steal the money intended for the schools, I can see them stealing my annuity money.

    I'm gonna go for the cash option!!!

    "Don't be a schmuck, always take the cash." -Coin Toss

      savagegoose's avatar - ProfilePho
      adelaide sa
      Australia
      Member #37136
      April 11, 2006
      3300 Posts
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      Posted: February 1, 2011, 12:40 pm - IP Logged

      here is a history of the top tax rates in USA .

      http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Tax_rates_in_history

       

      from 7% in 1913 to 94%. in 1944

      if you want to gamble on the top rate going up or down take a look. or take the money now and avoid any future shock tax hikes.

      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

        Coin Toss's avatar - shape barbed.jpg
        Zeta Reticuli Star System
        United States
        Member #30470
        January 17, 2006
        10350 Posts
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        Posted: February 1, 2011, 2:18 pm - IP Logged

        here is a history of the top tax rates in USA .

        http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Tax_rates_in_history

         

        from 7% in 1913 to 94%. in 1944

        if you want to gamble on the top rate going up or down take a look. or take the money now and avoid any future shock tax hikes.

        Good find, savagegoose. When the U.S. incomde tax came into being it was a temporary tax to help finance WWI.

        Temporary tax, yeah right. No such critter, ever.

        Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

        Lep

        There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

          Avatar
          Milwaukee, WI
          United States
          Member #3131
          December 27, 2003
          665 Posts
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          Posted: February 1, 2011, 11:12 pm - IP Logged

          If I take installments...

          I would be 85-90  when I get the last check.

          If I move to a state tax free state, I still have to file taxes in following years.

          I'm not sure that the US is stable enough now to be sure that I would still have money..

          Take the money and RUN!

            Avatar
            Monkey Butt, USA
            United States
            Member #54569
            August 23, 2007
            1124 Posts
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            Posted: February 1, 2011, 11:28 pm - IP Logged

            Annuity for me.......

            Gives me a good reason to go to the mailbox.

            Helps keep me on a tight budget.

            I'd view my annuity payment like a child support payment.......

            It might come .......

            It might not come........

            Either way it goes my life will go on and at the end of the alloted time the payments stop.........

              joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

              United States
              Member #32537
              February 12, 2006
              698 Posts
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              Posted: February 2, 2011, 1:40 am - IP Logged

              Lump Sum vs. Installments

              Lum Sum for the wisest investers, Installments are for idiots

               

              they have a saying about investments

              assumption is the mother of all f ups

              by taking the installments, are you making the assumption, the Govt bonds they buy to pay for your Annuity are better then taking the 35% full tax rate hit now, and investing all the cash into "other" then govt bonds


              i give you real numbers backed up by what a real clever invester would do right now"me" if i win MM jackpot

               

              $57,000,000 cash jackpot

              sense  max fed rate is 35%,  i remove that, and we have

              Your net payout: $37,050,000

              as taking the annuity would give you  2,275,000 to spend that year right away,  i take that out of total i would invenst 34,775,000

              now watch how i turn that 34m Atfer tax's , into beating $57,000,000 cash the lottery invested into govt bonds without tax's eating at it first



              Diviend paying Stocks, why, cease A govt Inventment SUCK,

              am now going to find a company i love, that pays must of ita PROFITS out to the share holders, o lookie, my fav, WWE Div & Yield:1.44 (12.00%

              so if i buyed the stock right now, by their earnings math to payout in return i get, is 12%, whats 12% of that 34m, its 4,173,000 A YEAR, if the company keeps growing  or does not lose money per share, that what you have for the REST of your life

              now, what the installments atfer 35% withheld,

              $2,275,000

              Now, here the intesting thing, the max tax rate on dividend, 15%, so minus 15% on my investments = minus 625950 in taxs= 3547050

              so my 3,547,050 atfer tax's for your Annuity of 2,275,000 atfer tax's,  Oh, i think am Kicking your beep

              o and 1 thing, your annuity has a End date, you need to Reinvest that money, to keep it going FOREVER,


              my dividend paying stocks, are mine forever, i just keep getting a share of the profits long as i own the stock, aka never sell it,

              their NO end to the first investment

              ,and i can reinvest their divdend payments just like you can with your annuity payments!

              , so atfer 3 decades, i sure be getting my 4.1m plus whatever divindend paymanys i reinvest, vs you only having what you reinvested  giving you future money atfer 3 decades

              Dude, you just got Owned by my investment in the long run. You Can't possibly Beat me

              and i can also sell the stock anytime i need to down the future to get cash Now,. thro i could  less about stocks price, long as i get that dividend checks, am happy,  if the stock goes up in price, great

              Sucks to be you...... I dont need to reinvest, but if i DO, i just add it onto my investments i get for LIFE



               

              Ps, do your own research about dividend investment,  companys that force on giving their owners  checks ever year for their earning, have little to no debt, that make a profit, and has a Strong History of doing it for many years, aka no startup companys , only proven Companys you should invest into

              did you know, thats How the Billioners play? welcome to the big leagues of investment,  majority of their income, = dividend payments form the companys they have ownership of stocks of

              they also reinvest, and keep growing their ownership of stocks that pay dividend, its how they Stay rich, and get richer

              fithy rich beeps have it all figuered out don't they , LOL

               

              also notice how my MAX tax  rate 15%, vs 35%  vs ever other income, why, its cease the Rich boys own R's in congress Hehehehe

              even if it was the same tax rate of 35%, my  paying stock investment would Sure beat you

               

              ps never invest into companys with debt, o but its alright to invest into a govt promise to pay you when their in trillions of debt, and future debt of what they own out via SS,medical etc

              right?


              their a reason 1% of americans own over 30% of all the wealth in our nation, ITS cease their NOT BLOODY idiots ,  they have lots of money, and KNOW how to invest it into the future, they make this nation wealthy,

                majority of people Don't have a clue how to make a nation Wealthy, yet alone them self's

                however the majority have ownership of ALL the debt, bank loans, cc debt, etc,             and they reflect that in their govt they put in power!


              , sense they are the majority, their people are in power, and what have their people done as of today , they  got their own govt into 14.1 Trillion debt as of Right now,

              plz, for the love of all that right in the world, , Don't invest into the group/govt thinking , or think govt investments can somehow beat the wisest investments   we humans have options above and beyond the govt bonds


              only thing the lottery has by using govt bonds, is you get it INVESTED before tax's, they just invested the cash jackpot FOR YOU WITHOUT tax's ,


              i get taxed by full 35% Now, invested the money my self, AND OWNED the govt investment with investing all the cash, govt bonds really Can go To Hell, their a sick joke,

               

              I have studyed and understand how the billioners play it, and I  "get it"   they live in the world you Never touch if you Trust  how the "majority" thinks,  the fastest way to hell  on earth, is to spend and invest the money, like the MAJORITY do it,

               

              for god sakes, look at the richest people on the plant, and how they invest, THEY ARE THE SMART ONES, not group think of majority, thats borders on retardness Line

              however IF  thinking for your self, is much to Hard, right then......, you rather have the lottery invest the money for you, ROFL,

               

              also death tax's are a joke, its a double tax on all your earning, god forbid you pass on whats rightful yours to your KIDS, thefts is what the govt is

              so just put the <snip> divindend paying stocks i into a trust, once your dead, they now belong to your KIDS, and they are set for life,

              divindend paying stocks by strong companys that last a life time= beats the HELL other kinds of investments

              owning a % of company and getting your fair stake in company overall profits=wise investing


               


              This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

                weshar75's avatar - Lottery-042.jpg
                Mcminnville, Oregon
                United States
                Member #3013
                December 13, 2003
                3047 Posts
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                Posted: February 2, 2011, 6:30 pm - IP Logged

                When I win the lottery tonight that is powerball.  I am going to take the 30 year annuity.  I like the payment plan because I will grow old with the money coming to me every year.-weshar75