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Mark Cuban's Advice to Winner

Topic closed. 29 replies. Last post 10 months ago by music*.

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TheMeatman2005's avatar - lightening
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Posted: January 13, 2016, 3:35 pm - IP Logged

He recommends taking the annuity...

My recommendation on whether to take the annuity or lump sum payment is...

  • If you are age 40 or below at the time you win take the annuity. At that age, you might expect to live another 29 years. And, if you are wise with your money's spending and saving, you would have enough left to last the rest of your life, even after the last payment.

 

  • If you are over 40 at the time you win take the lump sum cash payment. You might not live to see the 29th  payment and the estate taxes due on the remaining balance of the annuity would cause undue financial problems for your heirs. You could create your own annuity to pay out each year and a trust fund would ensure your estate wouldn't have to go through probate upon your demise. 

Either way....as Mr Spock (from Star Trek) would say "LIVE LONG AND PROSPER!" Patriot

The Meatman

“The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

    TheMeatman2005's avatar - lightening
    Brooklyn, NY
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    Posted: January 13, 2016, 3:47 pm - IP Logged

    buy 10 million shares of the realty group stock symbol o and live off the monthly dividends

    10 million shares of "O" at a loss of 1.10% today would have resulted in a loss of almost $7 million.

    The Meatman

    “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

    Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

      JBounds's avatar - Lottery-029.jpg
      Missouri
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      Posted: January 13, 2016, 3:53 pm - IP Logged

      I have 180 days to think about it and prepare on what to do, and yes I'd take awhile to get the right people to help me before I even thought about going to cash it in.  No way I would do it even the first after winning.  Right when people think no one is coming forward I'd be prepared and sucker punch them all and disappear.

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        Kentucky
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        Posted: January 13, 2016, 6:25 pm - IP Logged

        http://finance.yahoo.com/news/heres-mark-cubans-advice-winner-135430907.html

        My favorite:

         

        • Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.

        As for friends and relatives, I read a unique idea. Call or email them all and ask to borrow $500. You can remind those who said "No" after you collect your winnings.

          bigdaddy's avatar - aviator2 1.jpg
          BETWEEN OAKRIDGE AND WRIGHT-PATTERSON AFB
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          Posted: January 13, 2016, 6:53 pm - IP Logged

          10 million shares of "O" at a loss of 1.10% today would have resulted in a loss of almost $7 million.

          not worried about the loss,it will go back up with t many shares BOUGHT

          Relax,Bigdaddy has your number!!!!!

          Pi is the way...

          turning $30 or less into thousands everyday!!

          here we go steelers ..here we go---------stairway to seven 

          TIME FOR THE LOMBARDI TROPHY TO  COME  HOME..

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            Posted: January 13, 2016, 7:29 pm - IP Logged

            Don't take the annuity. Just take the lump sum and buy your own annuity if you're worried about it.

              MegaWinner's avatar - Lottery-029.jpg
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              Posted: January 14, 2016, 8:45 pm - IP Logged

              At 1.5 billion bucks, or almost $700mm after taxes, I'd make a list of family and friends that i'd set up for life.  Like, I'd easily give my mother and three sisters $20 million each no problem, and I'd pay the gift tax no worries.  Unless it's a state where you can divide the winnings as you see fit as you claim the prize.  I'd keep $300mm and give the rest away to close family and a few close friends (and of course some to charities over the years).

              And on the flip side, I'd even consider the annuity.  Even if the state stops paying me after a few years for whatever reason, I'd still have more money than I would know what to do with as the first few annuity payments would be humungous.

              Sun Smiley I got my fingers crossed ready to win!!! Sun Smiley

                Nikkicute's avatar - nnjx1k
                Wisconsin
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                Posted: January 14, 2016, 9:34 pm - IP Logged

                I have 180 days to think about it and prepare on what to do, and yes I'd take awhile to get the right people to help me before I even thought about going to cash it in.  No way I would do it even the first after winning.  Right when people think no one is coming forward I'd be prepared and sucker punch them all and disappear.

                You have only 60 days if you want the lump sum, 180 days is the deadline to turn in the ticket.

                California gives its winners a year to contact lottery officials before the money automatically goes to schools. Winners in Tennessee and Florida must claim their winnings within 180 days.

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                  Kentucky
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                  Posted: January 15, 2016, 12:01 am - IP Logged

                  You have only 60 days if you want the lump sum, 180 days is the deadline to turn in the ticket.

                  California gives its winners a year to contact lottery officials before the money automatically goes to schools. Winners in Tennessee and Florida must claim their winnings within 180 days.

                  You have 60 days after you validate the ticket.

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                    Ga
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                    Posted: January 18, 2016, 2:21 am - IP Logged

                    pretty sure that you can make a trust for them that they can get around the gift tax. it has a specific name, can't remember the name of it.

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                      New Member

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                      Posted: February 7, 2016, 12:58 am - IP Logged

                      Well said. Governments, local and national, make up the rules as they go and those rules are always in favor of you giving the government free money. Paying taxes on the same money twice should be illegal. One of my least favorite taxes is property taxes on cars. I pay sales tax when I buy the car, now I have to pay taxes annually for owning it?? Seems like double taxation to me!

                        TheMeatman2005's avatar - lightening
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                        Posted: February 7, 2016, 1:35 am - IP Logged

                        Well said. Governments, local and national, make up the rules as they go and those rules are always in favor of you giving the government free money. Paying taxes on the same money twice should be illegal. One of my least favorite taxes is property taxes on cars. I pay sales tax when I buy the car, now I have to pay taxes annually for owning it?? Seems like double taxation to me!

                        Sounds like Connecticut

                        The Meatman

                        “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

                        Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

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                          Posted: February 8, 2016, 12:17 pm - IP Logged

                          As for friends and relatives, I read a unique idea. Call or email them all and ask to borrow $500. You can remind those who said "No" after you collect your winnings.

                          Interesting but you have consider to people's philosophy on borrowing money and you have to consider your relationship. I for one never "lend" money. It creates an avenue for problems to arrive. The lendee has to deal with guilt and shame should they be unable to return the money and the lender becomes hostile and angry. I instead gift the money if I can afford to and someone is in a tight spot. $500 is a lot of money for a lot of people...many people don't take home 500 bucks in a week so again that's a big ask if you're going to judge someone for it. If I weren't in a position to be able to afford to give 500 bucks but I can afford to part way with 250, I'd gift the 250.

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                            Posted: February 8, 2016, 12:20 pm - IP Logged

                            Sounds like Connecticut

                            Meatman,

                             

                            NC. I am originally from NJ so I am still not over paying propery taxes for cars and sales tax for clothes and shoes lol. But you have to pay money to drive up there so I guess everything is a trade off!

                              music*'s avatar - nw bookeep.jpg
                              Happy California
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                              Posted: February 8, 2016, 1:57 pm - IP Logged

                              Do get a tax pro to answer your questions.  I just read on forbes.com when you put "lottery" into the search box a line from Ric Edelman of Edelman Financial Services. He says to GO SLOW and ask a tax pro.

                               Ric mentioned that the 40% figure may be too low. It could be as high as 80% gift tax on amounts above $14,000.00.  You can use your lifetime exclusion as has been posted already.

                              No No

                               I've been rich and I've been poor. Believe me, rich is better. 

                               Attributed to Joe E. Lewis and others