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What to Do, or Not Do if You Win the 123 Million Lottery

Topic closed. 10 replies. Last post 1 year ago by KY Floyd.

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Zeta Reticuli Star System
United States
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January 17, 2006
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Posted: July 14, 2015, 12:58 am - IP Logged

Interesting article on 24/7 Wall St.com(applies to any jackpot)

http://247wallst.com/investing/2015/07/12/what-to-do-or-not-do-if-you-win-the-123-million-lottery/

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.

    mikeintexas's avatar - tx avatar-1.gif
    Texas Panhandle
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    December 20, 2012
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    Posted: July 14, 2015, 1:58 am - IP Logged

    Good post, good article.  I particularly liked Twelve Things Not to Do If You Win the Lottery.  Some should go w/out saying, though, such as "don't leave your debts in place".  I'd pay off every one of my debts, even sending money to old friends I had once borrowed a dollar from to buy a soda pop.  I think I could die a fairly happy guy even if I had gone through most of the money but didn't owe a dime to anyone.   I think one of my hobbies would be, if I should be so fortunate as to win, would be to see how perfect I could make my credit rating.

    I still maintain the best investment you could make would be in yourself;  go back to school no matter your age, even if it was only to learn how to bake or better your photography skills.    Or, if your new-found wealth would warrant it, take that 'round the world trip you've always dreamed of, learn to be a pilot, take quilting lessons,  buy that plot of land to raise chickens or grow asparagus, whatever floats your boat. (personally, I wouldn't buy a boat)  I'd also invest in my family, sharing my money with them, as much as I could afford and Uncle Sam would allow me to do w/out tax consequences.

    "Don't give away the whole enchilada."  Def. that.  I don't really care all that much for Mexican food, anyway....too much cilantro.

      CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
      TX
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      January 4, 2012
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      Posted: July 14, 2015, 9:10 am - IP Logged

      As we all know and talk about these different large sums being advertised. The reality of most, comes down to the cash value and the "take home after taxes"part.... Yes, $123 Million would be a beautiful figure to have in your account right now, however the real cash value is at about $72.7 Million. Course lets get rid of Uncle Sam's cut of about 40%($29 million roughly), which leaves you with about 43.6 Million range..... Beautiful !!!...Opps, forgot about your state income tax(depending on where you reside) that could take out another 5-10 %. Luckily I reside in Texas and we have no state income tax.
      Still, having $43 Million in the bank should be enough for most of us folks here on LP. Spend a few million on house(s) and toys and vacations and the things in life that would be enjoyable(to you), which leaves you with a base of lets say $40 Million, invested with returns of 3 - 5% annually..Resulting in an annual income of 1.2 - 2 Million per year. Not too shabby of a deal. So lets say we get the average of $1.5 Million a year that needs to be taxed and Uncle Sugar gets his cut of 40% leaving you with about $900K to spend as you see fit.
      Maybe you make various donations and purchases to help out family because after all, you are a good person with morals and values that are a mainstay in the way you were raised or have grown into. Perhaps you are generous and give 1/3rd or even half of it away. So now you are down to somewhere in the $450-600K range. Still a lot to live on but not enough so you can be stupid with.
      All this being said...Anyone who uses sound judgement, listens to those who have the expert advise, should never want again. They key is to listen and learn to say "no" to people with their hands out. As I have learned over the years,"it's much easier to stay out of trouble than it is to get out of trouble"........Just my 2cents worth

      Stay Positive, Believe and good things will come your way

        HoLeeKau's avatar - YheaShea
        Idaho
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        Posted: July 14, 2015, 10:12 am - IP Logged

        As we all know and talk about these different large sums being advertised. The reality of most, comes down to the cash value and the "take home after taxes"part.... Yes, $123 Million would be a beautiful figure to have in your account right now, however the real cash value is at about $72.7 Million. Course lets get rid of Uncle Sam's cut of about 40%($29 million roughly), which leaves you with about 43.6 Million range..... Beautiful !!!...Opps, forgot about your state income tax(depending on where you reside) that could take out another 5-10 %. Luckily I reside in Texas and we have no state income tax.

         

        This really bugs me about my state lottery.  On their facebook page they will often post the annuity value (say 100 million) and a photo of a huge property that costs 25 million and say "If you win tonight you could buy this property and still have 75 million!!!

        No, you can't.  If you buy that property you'll probably have about 10 million left and you'll be broke within 10 years just trying to keep it up and pay the property taxes. 

        I don't understand why they are explicitly encouraging people to think they'd have a ton of money that they just won't have.  I mean, I understand they're trying to sell tickets, but it's very irresponsible of them if someone here wins and goes broke because the lottery convinced them they're wealthier than they actually are.

          haymaker's avatar - Lottery-012.jpg
          Egg Harbor twp.south Jersey shore
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          June 29, 2011
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          Posted: July 14, 2015, 10:42 am - IP Logged

          As we all know and talk about these different large sums being advertised. The reality of most, comes down to the cash value and the "take home after taxes"part.... Yes, $123 Million would be a beautiful figure to have in your account right now, however the real cash value is at about $72.7 Million. Course lets get rid of Uncle Sam's cut of about 40%($29 million roughly), which leaves you with about 43.6 Million range..... Beautiful !!!...Opps, forgot about your state income tax(depending on where you reside) that could take out another 5-10 %. Luckily I reside in Texas and we have no state income tax.

           

          This really bugs me about my state lottery.  On their facebook page they will often post the annuity value (say 100 million) and a photo of a huge property that costs 25 million and say "If you win tonight you could buy this property and still have 75 million!!!

          No, you can't.  If you buy that property you'll probably have about 10 million left and you'll be broke within 10 years just trying to keep it up and pay the property taxes. 

          I don't understand why they are explicitly encouraging people to think they'd have a ton of money that they just won't have.  I mean, I understand they're trying to sell tickets, but it's very irresponsible of them if someone here wins and goes broke because the lottery convinced them they're wealthier than they actually are.

          They only care about selling more tickets, nothing else.

          That's why they keep playing w/ the matrix.

           

          I look @ the C/V only and divide by 2 for taxes.

          I'll look @ houses later...or maybe not...hell this one's to big !

          Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

            noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
            Bay Area - California
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            Posted: July 14, 2015, 10:42 am - IP Logged

            The " Thing" about advice is not everyone takes it serious. Custer was given advice, and ignored it, people released from prison are given advice to refrain from going back to their old lifestyle yet these same people end up looking at those four walls once again. When it comes to money,  and especially people's own money, advice is sometimes cast to the wind.....sometimes. It's like the old song " it's my party and l can cry if l want too..meaning " it's my money and I will do whatever the heck l want with it"..

            People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

              IPlayWeekly's avatar - avatarmoney
              Columbus, Ohio
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              June 5, 2012
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              Posted: July 14, 2015, 1:48 pm - IP Logged

              Quit my job and take an instant vacation with family

                LottoLucy's avatar - hereslucy header.jpg

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                August 14, 2012
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                Posted: July 14, 2015, 4:07 pm - IP Logged

                Nice find!

                reading through the list of 12 things not to do I was thinking, why this is all just common sense.  Then I started to think about some of the people I know who have no impulse control, never say no to their kids even if it means going into debt for whatever the latest toy is, and I started thinking that this is something that everyone who plays the lottery should read just in case.

                I think my worst problem would be impatience.  I want my money in cash and I want it now!  I don't want to have to talk to a lawyer or an accountant beforehand.  Let me turn in the ticket and get the ball rolling so my husband can retire and we can buy the beach house we have been eyeing.  My husband, ever the soul of reason, says what if you miss something ...we should talk to a lawyer right away before we claim.  Sigh.

                Lotto Lucy


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                  Posted: July 15, 2015, 11:11 am - IP Logged

                  The best thing to do if you win...even if you net $50 million plus after taxes is to definitely not to try living like a billionaire, or even a millionaire.

                  If I won a JP that netted me $50 mil or better, I would spend no more than $50,000 on any vehicle, and no more than $300,000 on any home/condo.  Vacations would be modest, just traveling around the U.S. and such. 

                  Most people don't realize how extremely easy it is to go broke even with large wins.

                    RJOh's avatar - chipmunk
                    mid-Ohio
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                    March 24, 2001
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                    Posted: July 15, 2015, 11:49 am - IP Logged

                    They only care about selling more tickets, nothing else.

                    That's why they keep playing w/ the matrix.

                     

                    I look @ the C/V only and divide by 2 for taxes.

                    I'll look @ houses later...or maybe not...hell this one's to big !

                    "They only care about selling more tickets, nothing else."

                    The states get their 50% cut from ticket sales and the rest is divided up among the players according to predetermined rules, ticket sales is what counts for them.

                     * you don't need to buy more tickets, just buy a winning ticket * 
                       
                                 Evil Looking       

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                      Posted: July 15, 2015, 4:41 pm - IP Logged

                      Most of it is definitely common sense, but reading between the lines of the section on not trying to be the "generous high-roller" offers something that I suspect most people don't really think about. "Having an entourage generally only works for people who keep making more money." More generally, anybody who spends a  lot of money needs to keep making more money.

                      If somebody who clears $100 million earns a 5% return they'll have an annual income of $5 million (before taxes). A lot of other people who have a net worth of $100 million will earn, and spend another $15 or 20 million per year. They can spend $8 or $10 million a year without reducing their net worth. If somebody who doesn't have that earning power looks at  them and thinks their net worth allows them to spend just as much they're probably going to going to get in trouble.

                      Plenty of rock stars and sports figures offer an excellent example when they suddenly stop earning the fat annual income but don't stop the lavish spending.