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cash or anuity and what is the taxes % depending on the states

Topic closed. 6 replies. Last post 1 year ago by Romancandle.

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wander73's avatar - Lottery-038.jpg
Philadelphia, PA
United States
Member #153774
March 24, 2014
1168 Posts
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Posted: January 8, 2016, 2:39 pm - IP Logged

So whoever hits:

 

1.  Should they take cash or annuity?

2.  What is the advice next?

3.  What is the tax rate?   is it 40% and I know that every state is different in the country? 

4.  Should the lottery winner trust anyone?

5.  Of course no one has to give any money out to anyone but likely it could happen.

6.  How much should you invest?  make money on interest the rest of your life?

7.  What if the person has a heart attack and what are the laws regarding every state?

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    United States
    Member #169365
    October 13, 2015
    135 Posts
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    Posted: January 8, 2016, 6:37 pm - IP Logged
    1. Take it all - before all states end up like Illinois handing out I.O.U.s  - Unless you don't think you can't invest more wisely than the lottery is capable of.
    2. Don't tell anyone.  Show up for press conference with a Nixon mask on.
    3. Who cares what the tax rate is, you're bloody rich.
    4. ???  The Lottery will probably not accept a winning ticket that has been drawn up with crayon.
    5. If you give money to anyone, they will resent you for it.  Carry lots of lottery play slips and hand those out instead.
    6. All of it.  You'd need only to spend a fraction of the interest.
    7. If the heart attack happens immediately after the draw, person who happens across the corpse = hella lucky.  If it happens after the prize is claimed, then the funds go to your beneficiary (like your dog).
      travelintrucker's avatar - morph
      Greenville, SC
      United States
      Member #169870
      November 4, 2015
      374 Posts
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      Posted: January 8, 2016, 9:18 pm - IP Logged

      Cash. If you invest $200 mil, with a modest 10% return compounded over the same time frame as the annuity, you'd end up with more money. The trick is getting a 10% return each year.

      May the balls bounce in your favor!

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        NY
        United States
        Member #23835
        October 16, 2005
        3502 Posts
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        Posted: January 8, 2016, 9:22 pm - IP Logged

        "with a modest 10% return

        If you're paid by the mile you must be rich, what with having driven all the way to the last millennium.

          ArizonaDream's avatar - Lottery-009.jpg

          United States
          Member #169277
          October 10, 2015
          630 Posts
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          Posted: January 8, 2016, 9:46 pm - IP Logged

          1.  Should they take cash or annuity?

          I would take the annuity. I can manage dealing with the annual payment, but overwhelmed with the total all at once.  Yeah, I know the usual arguments against this, but 496 million minus taxes is an insane amount of money and (see anwer to #4).

          2.  What is the advice next?

          3.  What is the tax rate?   is it 40% and I know that every state is different in the country? 

          40% + state income tax, 0 in a couple of states, up to 10 or 12%, I think, in others. 

          4.  Should the lottery winner trust anyone?

          No. 

          5.  Of course no one has to give any money out to anyone but likely it could happen.

          I have plans to give some to a few people and much to certain charities. 

          6.  How much should you invest?  make money on interest the rest of your life?

          7.  What if the person has a heart attack and what are the laws regarding every state?

          Usual estate and inheritance laws apply. Make out a will ASAP if you don't already have one.

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            Arizona
            United States
            Member #165073
            March 24, 2015
            220 Posts
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            Posted: January 9, 2016, 7:33 pm - IP Logged

            Cash. If you invest $200 mil, with a modest 10% return compounded over the same time frame as the annuity, you'd end up with more money. The trick is getting a 10% return each year.

            If someone promises you a 10% annual return for the next 30 years, check whether his name is Bernie Madoff.

            If yes, call the police to report his escape.

            If no, call the FTC to investigate him. He's either lying, insider trading, or running a Ponzi scheme.

              Romancandle's avatar - moon
              Upacreek
              United States
              Member #136306
              December 8, 2012
              431 Posts
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              Posted: January 9, 2016, 7:45 pm - IP Logged

              #7 Good grief call 911 right away... Unless of course they haven't signed the back of the ticket yet...interesting moral dilemma on your hands there LOL

              -RC