Florida Powerball winner claims $50 million jackpot

Jan 14, 2013, 10:24 am (60 comments)

Powerball

ST. PETERSBURG, Fla. — Christopher McGurran overnight went from living a modest life to living large.

The 30-year-old and his wife claimed the $50 million Powerball jackpot drawn last month in St. Petersburg.

"It's always somebody, someplace else, and you wonder if somebody won it. It's nice," said neighbor Bud Patten.

McGurran, a heating and cooling technician, bought the winning ticket at a Sweetbay grocery store just minutes from his home. Little did he know at the time that it would be his golden one.

The winning ticket was a Quick Pick.

"One of the mission statements of Sweetbay is to support our community. What better way to do that than to give somebody in our community $50 million," said assistant store manager Owen Henry.

He won't quite get $50 million, lottery officials say. He opted for the lump sum payout of $32.4 million.

Despite the figures, officials say he and his wife were calm while collecting the winnings. They've already reached out to financial advisors for help dealing with all that cash.

"They were prepared for this. They were subdued, but they were excited. I asked them what they did for living and now they said they're both retired," said David Bishop, deputy secretary of the Florida Lotto.

Their stroke of luck is spurring others at the Sweetbay to get their tickets there, hoping for lightning to strike twice.

The Sweetbay store, located at 2139 34th Street North, will receive a bonus incentive of $25,000 for selling the winning ticket.

Lottery Post Staff

Comments

LottoGuyBC's avatarLottoGuyBC

Congrats Cheers Quick Pick eh Poke

$32.4 Million can buy alot of cheeseburgers White Bounce

Ronnie316

Nice win. 32.4 million after bloated government got their share. And the store gets a $25k tip.

HoLeeKau's avatarHoLeeKau

Yay for quick picks. 

cheer up face smiley

Ronnie316

That's what I call a "quicker picker-up'er"

Ronnie316

Wink

rdgrnr's avatarrdgrnr

Quote: Originally posted by Ronnie316 on Jan 14, 2013

Nice win. 32.4 million after bloated government got their share. And the store gets a $25k tip.

That $32.4 Million is before the government gets their share.

There's no way they'd let him keep that much money.

whiteballz's avatarwhiteballz

Quote: Originally posted by Ronnie316 on Jan 14, 2013

Nice win. 32.4 million after bloated government got their share. And the store gets a $25k tip.

50 million is the annuitized jackpot. The winner opted for the 32.4 million lump sum but they will never see that amount because 25% is taken out for tax withholding and even more taxes will be due April 2014. With a top federal tax rate of 39.6%, they will get to keep roughly 19.5 million. Good thing for the winner Florida has no state tax on lottery prizes unlike New Jersey which tacks on an additional 10.8%.

ressuccess's avatarressuccess

Congratulations to this last jackpot winner in the year 2012.

Cletu$2's avatarCletu$2

Congratulations to the McGurrans.Hopefully they can enjoy their jackpot without the leeches coming out of the woodwork to ruin it for them.

Piaceri

Quote: Originally posted by whiteballz on Jan 14, 2013

50 million is the annuitized jackpot. The winner opted for the 32.4 million lump sum but they will never see that amount because 25% is taken out for tax withholding and even more taxes will be due April 2014. With a top federal tax rate of 39.6%, they will get to keep roughly 19.5 million. Good thing for the winner Florida has no state tax on lottery prizes unlike New Jersey which tacks on an additional 10.8%.

Sheesh, with that much being taxed, and at only 30 yrs old, you'd be hard pressed to live large on $16m for the rest of your life. Comfortable yes.

Congrats to the winners, and congrats for living in a state with no income tax. Thumbs Up

whiteballz's avatarwhiteballz

Quote: Originally posted by Piaceri on Jan 14, 2013

Sheesh, with that much being taxed, and at only 30 yrs old, you'd be hard pressed to live large on $16m for the rest of your life. Comfortable yes.

Congrats to the winners, and congrats for living in a state with no income tax. Thumbs Up

16 mil is nothing to sneeze at but my issue is the 50 million annuitized jackpot is usually what is advertised on billboards and the number that grabs all the headlines. Little do most people know what they'd actually win after taxes isn't even close to the advertised amount. In other parts of the world like Canada and Europe, the advertised amount is exactly what you get since money won from the lottery is 100% tax free.

HoLeeKau's avatarHoLeeKau

Quote: Originally posted by Piaceri on Jan 14, 2013

Sheesh, with that much being taxed, and at only 30 yrs old, you'd be hard pressed to live large on $16m for the rest of your life. Comfortable yes.

Congrats to the winners, and congrats for living in a state with no income tax. Thumbs Up

Spend 1 M on a house and furnishings and put 15 M in a low risk tax free investment.  He'd get at least 200K per year right now, even at today's low rates, and that's tax free.  If he can't live really well on that amount, with no mortgage payment, there's something wrong.   When the return rates go back up to 6% like they were 10 years ago, he'll be getting 900K tax free.  And his initial 15 M stays untouched.

dallascowboyfan's avatardallascowboyfan

Congratulations to Mr. & Mrs. McGurran......Thumbs Up

maringoman's avatarmaringoman

Quote: Originally posted by whiteballz on Jan 14, 2013

16 mil is nothing to sneeze at but my issue is the 50 million annuitized jackpot is usually what is advertised on billboards and the number that grabs all the headlines. Little do most people know what they'd actually win after taxes isn't even close to the advertised amount. In other parts of the world like Canada and Europe, the advertised amount is exactly what you get since money won from the lottery is 100% tax free.

I love the idea of tax free lottery winnings. The reason behind my belief is that winner will spend that money in this economy and will end up paying sales taxes, property taxes, excise taxes, capital gains taxes and dividend taxes, interest taxes Thumbs Down

Jill34786's avatarJill34786

Quote: Originally posted by maringoman on Jan 14, 2013

I love the idea of tax free lottery winnings. The reason behind my belief is that winner will spend that money in this economy and will end up paying sales taxes, property taxes, excise taxes, capital gains taxes and dividend taxes, interest taxes Thumbs Down

I Agree! But unfortunately our Government loves getting these tax dollars so they can waste it among themselves.

rdgrnr's avatarrdgrnr

Quote: Originally posted by maringoman on Jan 14, 2013

I love the idea of tax free lottery winnings. The reason behind my belief is that winner will spend that money in this economy and will end up paying sales taxes, property taxes, excise taxes, capital gains taxes and dividend taxes, interest taxes Thumbs Down

Well thank God they ain't no tax on moonshine!

That's what I heard anyway.

I really wouldn't know.

Never seen the stuff around here, that's for sure.

Probably ain't none around here for a hundred miles.

Never will be neither.

helpmewin's avatarhelpmewin

Quote: Originally posted by Piaceri on Jan 14, 2013

Sheesh, with that much being taxed, and at only 30 yrs old, you'd be hard pressed to live large on $16m for the rest of your life. Comfortable yes.

Congrats to the winners, and congrats for living in a state with no income tax. Thumbs Up

I Agree!

helpmewin's avatarhelpmewin

Quote: Originally posted by rdgrnr on Jan 14, 2013

Well thank God they ain't no tax on moonshine!

That's what I heard anyway.

I really wouldn't know.

Never seen the stuff around here, that's for sure.

Probably ain't none around here for a hundred miles.

Never will be neither.

Cheers

msharkey2001's avatarmsharkey2001

Quote: Originally posted by rdgrnr on Jan 14, 2013

Well thank God they ain't no tax on moonshine!

That's what I heard anyway.

I really wouldn't know.

Never seen the stuff around here, that's for sure.

Probably ain't none around here for a hundred miles.

Never will be neither.

I don't know, I think you bear a striking resemblance to one of the dudes on the Discovery Channel reality series "Moonshiners".Cheers

JPJohnson

He's not taxed on $50 Million. $50 Million is an ANNUITIZED jackpot, the lottery doesn't hide that. He is taxed on his $34.2 Million. This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason.

Cash payouts (before state income tax) are 75% of the advertised CASH VALUE. Mega Millions CASH VALUE is usually around 56-58% of the advertised annutized jackpots. There's a "Jackpot Analysis" link on the main page (if you come from USAMEGA) that gives a breakdown of payouts for different states. That information has only been on USAMEGA since forever.

Ronnie316

Quote: Originally posted by helpmewin on Jan 14, 2013

I Agree!

       I Agree!

Ronnie316

Quote: Originally posted by helpmewin on Jan 14, 2013

Cheers

       Cheers

Ronnie316

Quote: Originally posted by JPJohnson on Jan 14, 2013

He's not taxed on $50 Million. $50 Million is an ANNUITIZED jackpot, the lottery doesn't hide that. He is taxed on his $34.2 Million. This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason.

Cash payouts (before state income tax) are 75% of the advertised CASH VALUE. Mega Millions CASH VALUE is usually around 56-58% of the advertised annutized jackpots. There's a "Jackpot Analysis" link on the main page (if you come from USAMEGA) that gives a breakdown of payouts for different states. That information has only been on USAMEGA since forever.

Thx fer splainin..........Yes Nod

Ronnie316

Quote: Originally posted by msharkey2001 on Jan 14, 2013

I don't know, I think you bear a striking resemblance to one of the dudes on the Discovery Channel reality series "Moonshiners".Cheers

You can be certain, that's just a stunt double.......

rooster8786

Actually, the cash payout is not a certain percentage.  It is the amount of cash, invested in "secured" gov't bonds today, it would take to make the annuity payments.  Because the interest on gov't bonds is so low, the present cash value has increased dramatically.  I think you should ALWAYS take the cash option because gov't bonds may become useless in the future, ESPECIALLY at the rate America is currently spending money...

Ronnie316

Quote: Originally posted by rooster8786 on Jan 14, 2013

Actually, the cash payout is not a certain percentage.  It is the amount of cash, invested in "secured" gov't bonds today, it would take to make the annuity payments.  Because the interest on gov't bonds is so low, the present cash value has increased dramatically.  I think you should ALWAYS take the cash option because gov't bonds may become useless in the future, ESPECIALLY at the rate America is currently spending money...

Finally, someone with a brain speaks up.... Thank you   rooster8786

RJOh's avatarRJOh

Quote: Originally posted by JPJohnson on Jan 14, 2013

He's not taxed on $50 Million. $50 Million is an ANNUITIZED jackpot, the lottery doesn't hide that. He is taxed on his $34.2 Million. This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason.

Cash payouts (before state income tax) are 75% of the advertised CASH VALUE. Mega Millions CASH VALUE is usually around 56-58% of the advertised annutized jackpots. There's a "Jackpot Analysis" link on the main page (if you come from USAMEGA) that gives a breakdown of payouts for different states. That information has only been on USAMEGA since forever.

"This is something you'd think you wouldn't have to explain to people on a lottery website"

No one has to explain anything around here but someone is always volunteering to do so.  This is the place to be if you don't know much.

Ronnie316

Quote: Originally posted by RJOh on Jan 14, 2013

"This is something you'd think you wouldn't have to explain to people on a lottery website"

No one has to explain anything around here but someone is always volunteering to do so.  This is the place to be if you don't know much.

I Agree! Lots of voluntary explaining going on round here.......

rcbbuckeye's avatarrcbbuckeye

Quote: Originally posted by rdgrnr on Jan 14, 2013

Well thank God they ain't no tax on moonshine!

That's what I heard anyway.

I really wouldn't know.

Never seen the stuff around here, that's for sure.

Probably ain't none around here for a hundred miles.

Never will be neither.

Hey ridge, when you sending my next shipment of 'shine??? I put the check in the mail!

OOPS!

Never mind everybody. Nevermind.

 

(Uh...ridge, I'll send you a pm).

haymaker's avatarhaymaker

Quote: Originally posted by whiteballz on Jan 14, 2013

50 million is the annuitized jackpot. The winner opted for the 32.4 million lump sum but they will never see that amount because 25% is taken out for tax withholding and even more taxes will be due April 2014. With a top federal tax rate of 39.6%, they will get to keep roughly 19.5 million. Good thing for the winner Florida has no state tax on lottery prizes unlike New Jersey which tacks on an additional 10.8%.

Yea, a 10.8 % tax law that was passed in the middle of the night and not reported on by the so called vigilant media.

If that's not bad enough it was made retroactive to the first day of the year it was passed, (2009 ?)

because someone here hit a big JP on 1 of the multi-state games, MM I think, and greedy jersey missed out on the action.

But the retro made up for it.

And Caused a major tax headache for the winner.

 

How did it happen ?

simple, one person, even one w/a big lottery win can't fight the lawmakers and no one else cares, especially non-players.

also media don't care about players cause not the general populace.

I saw no editorial about the retro part either, and that is inexcusable.

Ronnie316

Quote: Originally posted by RJOh on Jan 14, 2013

"This is something you'd think you wouldn't have to explain to people on a lottery website"

No one has to explain anything around here but someone is always volunteering to do so.  This is the place to be if you don't know much.

I Agree!

Ronnie316

Quote: Originally posted by rcbbuckeye on Jan 14, 2013

Hey ridge, when you sending my next shipment of 'shine??? I put the check in the mail!

OOPS!

Never mind everybody. Nevermind.

 

(Uh...ridge, I'll send you a pm).

Keep that shine flowin like a river my friends..........Yes Nod

Ronnie316

Quote: Originally posted by haymaker on Jan 14, 2013

Yea, a 10.8 % tax law that was passed in the middle of the night and not reported on by the so called vigilant media.

If that's not bad enough it was made retroactive to the first day of the year it was passed, (2009 ?)

because someone here hit a big JP on 1 of the multi-state games, MM I think, and greedy jersey missed out on the action.

But the retro made up for it.

And Caused a major tax headache for the winner.

 

How did it happen ?

simple, one person, even one w/a big lottery win can't fight the lawmakers and no one else cares, especially non-players.

also media don't care about players cause not the general populace.

I saw no editorial about the retro part either, and that is inexcusable.

I Agree! I have a friend on payroll who is paying an extra $110. per month in payroll taxes as of this week. 

That's on a $50k income.................  I don't do fundamental mathematics, but it sounds like a bunch.

Ronnie316

Quote: Originally posted by RJOh on Jan 14, 2013

"This is something you'd think you wouldn't have to explain to people on a lottery website"

No one has to explain anything around here but someone is always volunteering to do so.  This is the place to be if you don't know much.

I Agree!LOL

Ronnie316

Quote: Originally posted by Ronnie316 on Jan 14, 2013

I Agree!LOL

               See Ya!

rdgrnr's avatarrdgrnr

Quote: Originally posted by JPJohnson on Jan 14, 2013

He's not taxed on $50 Million. $50 Million is an ANNUITIZED jackpot, the lottery doesn't hide that. He is taxed on his $34.2 Million. This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason.

Cash payouts (before state income tax) are 75% of the advertised CASH VALUE. Mega Millions CASH VALUE is usually around 56-58% of the advertised annutized jackpots. There's a "Jackpot Analysis" link on the main page (if you come from USAMEGA) that gives a breakdown of payouts for different states. That information has only been on USAMEGA since forever.

" This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason."

"That information has only been on USAMEGA since forever."

Sorry we made you so mad, Mr Johnson.  Frown

Is there any way we can make it up to you?  Sad Wavey

Piaceri

Quote: Originally posted by HoLeeKau on Jan 14, 2013

Spend 1 M on a house and furnishings and put 15 M in a low risk tax free investment.  He'd get at least 200K per year right now, even at today's low rates, and that's tax free.  If he can't live really well on that amount, with no mortgage payment, there's something wrong.   When the return rates go back up to 6% like they were 10 years ago, he'll be getting 900K tax free.  And his initial 15 M stays untouched.

There's a difference between living large and living comfortable. I never said he could not live well. I just said that at the age of 30, and retired, he can live comfortable for the rest of his life. Live large? Buying fancy cars every year or so? Buying multiple lux vacation homes or lux vacations? No. Comfortable and worry free? Yes. 

At the age of 30, the temptation to live large is, well, large. Party

JPJohnson

Quote: Originally posted by rdgrnr on Jan 14, 2013

" This is something you'd think you wouldn't have to explain to people on a lottery website, but people like riling themselves up for whatever reason."

"That information has only been on USAMEGA since forever."

Sorry we made you so mad, Mr Johnson.  Frown

Is there any way we can make it up to you?  Sad Wavey

You already make it up to me by reading my post and educating yourself.  Jackpot Analysis has the answers you are looking for.

whiteballz's avatarwhiteballz

Quote: Originally posted by maringoman on Jan 14, 2013

I love the idea of tax free lottery winnings. The reason behind my belief is that winner will spend that money in this economy and will end up paying sales taxes, property taxes, excise taxes, capital gains taxes and dividend taxes, interest taxes Thumbs Down

that is a good reason. Another reason is the lottery player is taking all the risk when they spend their money on lottery tickets and the government takes no risk. When the lottery player picks the wrong numbers he loses his money, the government loses nothing but if somehow the lottery player picks the right numbers and wins the jackpot, the government takes half.

It's funny, most people consider Canada and Europe to be more socialist than the United States, meaning to say Canada and Europe have more social welfare programs than the US but even then Canada and Europe allow their winners to keep all of their lottery money without imposing any tax.

rdgrnr's avatarrdgrnr

Quote: Originally posted by JPJohnson on Jan 15, 2013

You already make it up to me by reading my post and educating yourself.  Jackpot Analysis has the answers you are looking for.

That's super!!! Hyper

Thank you, Mr Johnson!!! See Ya!

 

Now we're happy shiny people again, yay!!!Banana

hotslot3

Quote: Originally posted by Piaceri on Jan 14, 2013

There's a difference between living large and living comfortable. I never said he could not live well. I just said that at the age of 30, and retired, he can live comfortable for the rest of his life. Live large? Buying fancy cars every year or so? Buying multiple lux vacation homes or lux vacations? No. Comfortable and worry free? Yes. 

At the age of 30, the temptation to live large is, well, large. Party

Just out of curiosity, what how much would someone need to have to "live large" by your standards? He will be able to live "well" or "comfortable and worry free"  I would also propose that he can live large as well. My god, he now has about $20 million in cash.  A good money manager can get well above some of the $200k/year interest some here have thrown around if he's willing to put some of it in more aggressive investments. 

Congrats to the winner!  Wish it was me. 

Enjoy the money and remember that you had an extreme stroke of luck that most will only dream about.

Don't blow it all in 5 years like other winners. 

Thumbs Up

IPlayWeekly's avatarIPlayWeekly

Congrats, alot of bank to play with

DG1USA

Congratulations to the McGurran family. Party

Godspeed.

HaveABall's avatarHaveABall

Quote: Originally posted by whiteballz on Jan 14, 2013

50 million is the annuitized jackpot. The winner opted for the 32.4 million lump sum but they will never see that amount because 25% is taken out for tax withholding and even more taxes will be due April 2014. With a top federal tax rate of 39.6%, they will get to keep roughly 19.5 million. Good thing for the winner Florida has no state tax on lottery prizes unlike New Jersey which tacks on an additional 10.8%.

Thanks, whiteballz, for providing the FULL picture (our only member cleaver enough to know AND post thus far).  It was necessary, as even the excellent "jackpot analysis" page on usamega.com doesn't mention the VITAL 39.6% eventual/full Federal Income Tax Rate that all jackpot winners of $1M+ amounts will have to face (admin could inform us at the top of the page; displaying in January each year the current top federal income tax bracket is changed, writing in italics, yet not necessarily adding into their figures below if they insist on only showing the U.S.A. Federal Government's 1st of 2 unequal income tax deductions)!  Certainly, if the jackpot winner doesn't donate or have deductions that etch away at this spread over that initial, smaller deceptive 25% withholding, they will be shocked when their tax account goes to pay any short-falls during the following year!

In reading the many other posts that discuss final amount, most members are displaying their continued misunderstanding of this extra up to 14.5% in Income Taxes probably due later.  Not much help to them self/household/group if they are running #s for their annual business and life plans come January each year.

Most importantly ... congratulations on your exciting Powerball jackpot win McGurrans!!!

Conehead US Flag Troll

HaveABall's avatarHaveABall

Attention all tax accountant, lotterypost members.  This is a unique situation for we members to analyze, since this Powerball Jackpot was drawn last year, at a much lower Federal Income Tax top tax bracket % rate.  Tax Accountant(s) Professional, would you please explain if the U.S.A. Federal IRS expects to see these Powerball jackpot winners to document the win as when claimed by claim-form (which would be year 2012), or when Florida Lottery Headquarters takes off their lower 25% Federal Income Taxes before printing the check/electronically transferring the after income taxes, etc. funds to winner's checking/financial account (which would be year 2013)? 

Thanks tax accountants, in advance, for your Federal IRS research and explanation. See Ya!

HoLeeKau's avatarHoLeeKau

Quote: Originally posted by hotslot3 on Jan 15, 2013

Just out of curiosity, what how much would someone need to have to "live large" by your standards? He will be able to live "well" or "comfortable and worry free"  I would also propose that he can live large as well. My god, he now has about $20 million in cash.  A good money manager can get well above some of the $200k/year interest some here have thrown around if he's willing to put some of it in more aggressive investments. 

Congrats to the winner!  Wish it was me. 

Enjoy the money and remember that you had an extreme stroke of luck that most will only dream about.

Don't blow it all in 5 years like other winners. 

Thumbs Up

Yeah I'd be living quite large on $200K per year with no mortgage.  Comfortable would take maybe $75K.

But I do understand what Piaceri is saying.  I remember seeing years ago that Brittney Spears was spending almost a million dollars a month.  I'm sure some people would need to feel like they don't even have to think about whether they have enough $$$ to buy something.  If they want it, they get it.

Jill34786's avatarJill34786

Quote: Originally posted by HaveABall on Jan 15, 2013

Attention all tax accountant, lotterypost members.  This is a unique situation for we members to analyze, since this Powerball Jackpot was drawn last year, at a much lower Federal Income Tax top tax bracket % rate.  Tax Accountant(s) Professional, would you please explain if the U.S.A. Federal IRS expects to see these Powerball jackpot winners to document the win as when claimed by claim-form (which would be year 2012), or when Florida Lottery Headquarters takes off their lower 25% Federal Income Taxes before printing the check/electronically transferring the after income taxes, etc. funds to winner's checking/financial account (which would be year 2013)? 

Thanks tax accountants, in advance, for your Federal IRS research and explanation. See Ya!

If the winner filed/turned in their jackpot claim in 2012 and then received their payout in 2013, the Federal tax rate will be based on 2012 figures. The most recent PB winners that split the $587 million jackpot adhered to that guideline because they knew the top Federal tax rates were going up. 

In years past, many winners have waited to claim their winnings until the new year thereby prolonging their tax obligations to the folowing year.

HaveABall's avatarHaveABall

Quote: Originally posted by Jill34786 on Jan 15, 2013

If the winner filed/turned in their jackpot claim in 2012 and then received their payout in 2013, the Federal tax rate will be based on 2012 figures. The most recent PB winners that split the $587 million jackpot adhered to that guideline because they knew the top Federal tax rates were going up. 

In years past, many winners have waited to claim their winnings until the new year thereby prolonging their tax obligations to the folowing year.

Thanks, tax account Jill34786, for sharing your expertise.

The only problem with WAITING to claim, IN MY STATE, is that if a MM or Powerball jackpot winner claims more than 2 months after the drawing date, they give up the right to claim the lump sum and are forced to accept payment as a yearly annuity amount.  Plus, for those November and December winners, some years, like this year the tax rate brackets aren't published early, by October, for the following year and Congress instead hurts them by publishing radically higher rates in January; as it, unfortunately, happened this year.

Coffee

Jill34786's avatarJill34786

Quote: Originally posted by HaveABall on Jan 15, 2013

Thanks, tax account Jill34786, for sharing your expertise.

The only problem with WAITING to claim, IN MY STATE, is that if a MM or Powerball jackpot winner claims more than 2 months after the drawing date, they give up the right to claim the lump sum and are forced to accept payment as a yearly annuity amount.  Plus, for those November and December winners, some years, like this year the tax rate brackets aren't published early, by October, for the following year and Congress instead hurts them by publishing radically higher rates in January; as it, unfortunately, happened this year.

Coffee

The Bush tax rates had been in effect for the past 10 years since 2003 so the only issue with someone hitting the jackpot near the end of year was whether they wanted to hold off their tax obligations until the following filing year. The rate was the same either way. If I were in a situation where I won in October and faced the 60-day grace for taking a lump, my choice would be to claim the lump sum even though the additional taxes would be due in roughly 4 months. 

The new rates that went into effect for 2013 will definitely hurt and going forward the pain may get even worse as Obama is conjuring ways to limit deductions strictly for the wealthy.

Jill34786's avatarJill34786

Quote: Originally posted by HoLeeKau on Jan 15, 2013

Yeah I'd be living quite large on $200K per year with no mortgage.  Comfortable would take maybe $75K.

But I do understand what Piaceri is saying.  I remember seeing years ago that Brittney Spears was spending almost a million dollars a month.  I'm sure some people would need to feel like they don't even have to think about whether they have enough $$$ to buy something.  If they want it, they get it.

Living "quite large" on 200k per year with no mortgage may still be stretching it. If the winner bought a $3-4 million home the property tax at least in certain parts of Florida would run $70-80k per year. Throw in a few new cars every year and that budget is decimated. 

Don't get me wrong but 200k per year can go a long way as long as you don't go overboard. A modest home $800k-1m, a new vehicle every 2-3 years and you will still be able to splurge on several vacations and moderate luxury items. If someone lives out in the sticks and isn't keen on impressing others than 75k will be more than adequate to live a very comfortable lifestyle.

hotslot3

Quote: Originally posted by Jill34786 on Jan 15, 2013

Living "quite large" on 200k per year with no mortgage may still be stretching it. If the winner bought a $3-4 million home the property tax at least in certain parts of Florida would run $70-80k per year. Throw in a few new cars every year and that budget is decimated. 

Don't get me wrong but 200k per year can go a long way as long as you don't go overboard. A modest home $800k-1m, a new vehicle every 2-3 years and you will still be able to splurge on several vacations and moderate luxury items. If someone lives out in the sticks and isn't keen on impressing others than 75k will be more than adequate to live a very comfortable lifestyle.

How much would it take to live large? If you can't "live large" on $20 million in this case as some are suggesting. What would be the number, ball park for most here?

Jill34786's avatarJill34786

Quote: Originally posted by hotslot3 on Jan 15, 2013

How much would it take to live large? If you can't "live large" on $20 million in this case as some are suggesting. What would be the number, ball park for most here?

I was answering a comment on a $200k per year budget and not $20 million. A $20 million nest egg clear of all tax obligations is more than adequate to live large for quite some time. This kind of money invested wisely should generate well over $1,000,000 per year without too much difficulty which in itself should be sufficient for most folks on this board.

HoLeeKau's avatarHoLeeKau

Quote: Originally posted by hotslot3 on Jan 15, 2013

Just out of curiosity, what how much would someone need to have to "live large" by your standards? He will be able to live "well" or "comfortable and worry free"  I would also propose that he can live large as well. My god, he now has about $20 million in cash.  A good money manager can get well above some of the $200k/year interest some here have thrown around if he's willing to put some of it in more aggressive investments. 

Congrats to the winner!  Wish it was me. 

Enjoy the money and remember that you had an extreme stroke of luck that most will only dream about.

Don't blow it all in 5 years like other winners. 

Thumbs Up

Absolutely!  If he's willing to take on more risk -- and at his age he probably is -- then he can get a lot more.  Thumbs Up

But even with 20 mil in the bank invested in moderate to high risk ventures that all work out, if he starts thinking he's rich and spending like Brittney Spears, he'll have it blown in 5 years.

Piaceri

Quote: Originally posted by Jill34786 on Jan 15, 2013

Living "quite large" on 200k per year with no mortgage may still be stretching it. If the winner bought a $3-4 million home the property tax at least in certain parts of Florida would run $70-80k per year. Throw in a few new cars every year and that budget is decimated. 

Don't get me wrong but 200k per year can go a long way as long as you don't go overboard. A modest home $800k-1m, a new vehicle every 2-3 years and you will still be able to splurge on several vacations and moderate luxury items. If someone lives out in the sticks and isn't keen on impressing others than 75k will be more than adequate to live a very comfortable lifestyle.

This is what I mean about living comfortable vs living large. A single purchase of a BMW 6 Series convertible will eat more than half your $200k budget. Taxes and insurance on a $1m home about $30k-$40k, utilities (electric, gas, water, tv/internet service, phones) will set you back minimum $1.2k per month. And now your $200k budget is down to less than $40k. Add in health insurance, car insurance on that expensive car (plus others if you have more than one). Your finance guy takes a chunk. He/she does not work for free. Don't forget you have a cpa to do your taxes, too. That money goes fast. And don't forget you still have to eat.

Let's say you are 30 years old and you put your $20m ('ll go on a limb and say he nets less than $20m after taxes) into moderate to high risk growth and we hit another year like 2008-2009. Dude, your less than $20m is now much less than $20m, like maybe a third or more is gone in less than a week of fast falling markets. Some will lose more.

People seem to think they can live with expensive things on a little budget (not that $200k is a little amount). It does not work that way. Expensive things cost more in maintenance. It's like they say when you buy a horse, the least expensive thing is the horse. It's the upkeep that'll break you. Maintaining a living large lifestyle is expensive to maintain. Just because you won a net $20m in the lottery, does not mean you are Brittany Spears who pulls in $50m or more a year, year after year.

For me, a net $20m is a very nice early retirement (I'm not 30). There's enough for a cozy house on a nice sized lot for me and my critters (and a lawn gang to mow and blow), a new car every few years, a couple of expensive hobbies, maybe go back to school to study art, and trips to see my kids who live in different states attending college. There's money to send a gardener to help my Mom with her gardening, and a few fix it things around her house. Once they start making an appearance, there's money to take the future grandkids to Disney a few times. I wouldn't mind a nice RV to travel the highways to see this beautiful country of ours. I could live very well on $200k after tax (you did say no-tax munis). 

White Bounce

HaveABall's avatarHaveABall

Good examples, Piaceri, of how a solo large net lottery jackpot winner could "pace" the spending of their net millions -- or interest/dividens from that net -- every 1, 3, 5, 7, & 10 years or so.

Additional, for a large, net, jackpot winner who lives in a large metro area, they might choose (even if own a car) to mainly turn to purchasing a bunch of "yearly" or "monthly" items:  train pass, bus pass, boat pass, taxis, limousines, seasonal tickets to opera, theators, sports, spectator, movie passes, murder-mystery sleeper train adventures, amusement parks, water parks, zoos, etc.

BananaDisney

golfer1960's avatargolfer1960

Wow, another quick pick wins again!!

mcginnin56

Quote: Originally posted by golfer1960 on Jan 17, 2013

Wow, another quick pick wins again!!

But of course golfer. If your going to win big, the QP will always be your best odds and preferred choice of the savvy lottery player.  Wink

In a recent seance with Einstein, all these facts were confirmed and approved by him wholeheartedly.  Conehead

neilski50

Good win. Live day by day your way.

helpmewin's avatarhelpmewin

Quote: Originally posted by Piaceri on Jan 15, 2013

This is what I mean about living comfortable vs living large. A single purchase of a BMW 6 Series convertible will eat more than half your $200k budget. Taxes and insurance on a $1m home about $30k-$40k, utilities (electric, gas, water, tv/internet service, phones) will set you back minimum $1.2k per month. And now your $200k budget is down to less than $40k. Add in health insurance, car insurance on that expensive car (plus others if you have more than one). Your finance guy takes a chunk. He/she does not work for free. Don't forget you have a cpa to do your taxes, too. That money goes fast. And don't forget you still have to eat.

Let's say you are 30 years old and you put your $20m ('ll go on a limb and say he nets less than $20m after taxes) into moderate to high risk growth and we hit another year like 2008-2009. Dude, your less than $20m is now much less than $20m, like maybe a third or more is gone in less than a week of fast falling markets. Some will lose more.

People seem to think they can live with expensive things on a little budget (not that $200k is a little amount). It does not work that way. Expensive things cost more in maintenance. It's like they say when you buy a horse, the least expensive thing is the horse. It's the upkeep that'll break you. Maintaining a living large lifestyle is expensive to maintain. Just because you won a net $20m in the lottery, does not mean you are Brittany Spears who pulls in $50m or more a year, year after year.

For me, a net $20m is a very nice early retirement (I'm not 30). There's enough for a cozy house on a nice sized lot for me and my critters (and a lawn gang to mow and blow), a new car every few years, a couple of expensive hobbies, maybe go back to school to study art, and trips to see my kids who live in different states attending college. There's money to send a gardener to help my Mom with her gardening, and a few fix it things around her house. Once they start making an appearance, there's money to take the future grandkids to Disney a few times. I wouldn't mind a nice RV to travel the highways to see this beautiful country of ours. I could live very well on $200k after tax (you did say no-tax munis). 

White Bounce

i'm gonna get me a BMW X5 Yes Nod

 

HyperNOW i'm getting excited Hyper

golfer1960's avatargolfer1960

Quote: Originally posted by mcginnin56 on Jan 17, 2013

But of course golfer. If your going to win big, the QP will always be your best odds and preferred choice of the savvy lottery player.  Wink

In a recent seance with Einstein, all these facts were confirmed and approved by him wholeheartedly.  Conehead

Yes mcginnin, thank you. How you been brother? I haven't seen you around lately. Are you depressed about Obama winning too (like me)?

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