cash or anuity and what is the taxes % depending on the statesPrev TopicNext Topic

• wander73

  

  EveryMailBox Type in Search.

  Philadelphia, PA
  United States
  Member #153,767
  March 24, 2014
  8,465 Posts
  Online
  Jan 8, 2016, 2:39 pm

  ▲▼

  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?
• thebizdude

  

  United States
  Member #169,357
  October 13, 2015
  135 Posts
  Offline
  Jan 8, 2016, 6:37 pm

  ▲▼
  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

  

  Greenville, SC
  United States
  Member #169,863
  November 4, 2015
  415 Posts
  Offline
  Jan 8, 2016, 9:18 pm

  ▲▼

  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!
  
• KY Floyd

  

  NY
  United States
  Member #23,834
  October 16, 2005
  4,771 Posts
  Offline
  Jan 8, 2016, 9:22 pm

  ▲▼

  "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

  

  United States
  Member #169,269
  October 10, 2015
  629 Posts
  Offline
  Jan 8, 2016, 9:46 pm

  ▲▼

  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.
• Murgatroyd

  

  Arizona
  United States
  Member #165,065
  March 24, 2015
  299 Posts
  Offline
  Jan 9, 2016, 7:33 pm

  ▲▼
  In response to travelintrucker

  Quote: Originally posted by travelintrucker on Jan 8, 2016

  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

  

  Upacreek
  United States
  Member #136,300
  December 8, 2012
  432 Posts
  Offline
  Jan 9, 2016, 7:45 pm

  ▲▼

  #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 

  -RC