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Where can you put that money if you win?

Topic closed. 4 replies. Last post 13 years ago by Bug.

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rundown99's avatar - cigar

United States
Member #567
August 14, 2002
484 Posts
Offline
Posted: September 26, 2003, 9:03 am - IP Logged

People on this message forum talk about this system software or that system software.  People argue about cash versus annuity.  This or that, this or that.... why this?.... why that?  But nobody who places their posts or strategies have come close to winning the jackpot!!!!!  And believe me, if they did win it, and people asked them how they did it, they wouldn't tell anybody...... A DAMN THING!!!! But considering that the lottery is totally RANDOM anyway, I would be more concerned about what to do if I ever WIN the jackpot.  I play the same combination of numbers for some plays, and I'll add a few quick picks.  That powerball jackpot right now is at $60 million, so the cash is probably at about $30 million before taxes.  After taxes, it's probably $15-$20 million (I heard that you lose about half of it in taxes).  (I know that the Mega Millions jackpot is at $126 million, but I live in Nebraska which is a Powerball state, and the closest Mega Millions state is Illinois, and I am NOT driving that far just to buy lotto tickets.)  But the banks only insure up to $100,000.  So what I'm getting at is, Where the HELL would you place that kind of money?  I've read about Treasury bills and tax-free municipal bonds, but how do you go about setting those up?  Do you go to the bank???? NYSE????? WHO ????  (Of course, I know that I COULD, SHOULD, and WOULD talk to a financial adviser, tax attorney, and accountant about this if I ever won, but I'm just curious about what people think about the matter).

Smart lottery winners form trust to claim their winnings.  They send an attorney to the lottery headquarters to claim the prize in trust, so that ONLY the name of the trust is revealed.  And they tell NO ONE, especially relatives.

If you ever win a lottery and you are single, the only person you should ever marry is someone who was truly in love with you BEFORE you won the jackpot!

    hypersoniq's avatar - 8ball
    Pennsylvania
    United States
    Member #1340
    April 6, 2003
    2450 Posts
    Offline
    Posted: September 26, 2003, 5:11 pm - IP Logged

    learn all you need here...

    http://www.fdic.gov/

    looks like $100,000 per person... per institution. Certain P.O.D. trusts can establish 100,000 per beneficiary insurance. In short, it looks like you would need to "spread the love" to many different institutions to go solely on FDIC insurance. Certain credit unions can provide members with "excess share insurance" which bumps the member limit to $250,000 to $350,000.

    I think I would open enough accounts in different institutions to rack up about $2,000,000 in protected funds (20 accounts)... lessen the risk by only using well-established financial institutions and stockpile some choice non-liquid assets (property)  

    of course you could always drive around to ATM machines and withdraw the daily limit on all accounts for a year and fill up a safe at home, that would put over 2,000,000 in cold-hard cash...

    Playing more than one ticket per game is betting against yourself.

      twisted's avatar - underground
      New Jersey
      United States
      Member #2376
      September 25, 2003
      582 Posts
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      Posted: September 26, 2003, 6:16 pm - IP Logged

      I dont think taxes take close to 50% of what you win.  Its not like income you have earned so I think it is taxed differently.  As Powerball goes it takes away I think 27% federal tax and then your state taxes which I dont think go higher than 8%(MAX).  But Mega Millions is different.  For some reason they only withhold 25% federal tax and then your state tax you have to pay to the state.  But I'm lucky in a way that my "legal" residency is in NJ but I dont live in NJ right now.  I can tell someone to buy tickets for me in NJ and then pay no state tax.  So I guess "if" i wing the jackpot I will get 75% of the jackpot.

        hypersoniq's avatar - 8ball
        Pennsylvania
        United States
        Member #1340
        April 6, 2003
        2450 Posts
        Offline
        Posted: September 27, 2003, 5:52 pm - IP Logged

        here in P.A. there are zero state and local taxes on lottery winnings IF you are a PA resident.

        they WITHHOLD 27%, you are responsible for 35% (used to be 39.6% or something like that)... that means you will still owe 8%... one of the many traps lottery winners can fall into because there really is no one-stop source of info on what to do if you win

        1/2 to 2/3 of ALL jackpot winners of $1,000,000 or more end up worse than they were before winning (a 16Million dollar PA lottery winner had his brither try to have him killed, now he's broke ,living on social security and couldn't be happier)

        If I ever do win, I wouldn't sell the system that picked the numbers, but I would write a "guidebook" for those that end up in the same situation... ;-)

        Playing more than one ticket per game is betting against yourself.

          Bug's avatar - avatar php?userid=678402&dateline=1071851147

          United States
          Member #788
          October 15, 2002
          471 Posts
          Offline
          Posted: September 28, 2003, 5:54 am - IP Logged

           

          If you create an estate in each family members name and then name family members beneficiaries, I think that you can increase the amount of your insurance per account. Not sure, but  thought that was how it worked.