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What If Ya Won the Lottery


Starfighterpilot
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If you're serious about investing, always take the lump sum. You'll end up making more in the long run because your interest will be compounding on your investments. Plus, on a lot of these lotteries that pay in the form of an annuity (i.e., a certain amount over a 20- or 30- year period), those payments stop on your death. They do not necessarily transfer to your survivors. So if you punt off after a couple of years, away goes the money. Always read the fine print.

 

Now, if you don't care about trying to play the game of can-I-use-compounding-interest-to-beat-the-annuity-payment, you can take $20 million lump, just invest it into a bunch of tax-free municipal bonds at 5 percent (very doable right now) and end up taking home $1 million federal and state tax-free (provided you invested in bonds from your home state, or a U.S. territory) every year for the rest of your life (you'd have to reinvest every time a bond got called, but that's not a big deal).

 

I think I can live off $1 million tax free forever, by the way. :)

 

So now we've turned $20 million lump into a series of $1 million tax-free annual payments, and assuming I live to 70, even though inflation is eating into my take-home (bond interest doesn't index for inflation), getting $40 million tax-free over that time period, I promise you I feel good about my standard of living. And I just kept myself from blowing it all on the front end by locking it into a laddered bond structure.

 

Jess

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if they were not in it just for themoney lotery systems would have multipal pay out's of say $1 mill cash but to more people , haveing 30 $1mill winners would help more then 1

 

also the biger the winnings the more the holders make an the less they pay out ,,the pay out over 30 years is such that the oreg moneys are still there and all you pay out is intrest on the total,, it's a win win for the lotery people that hold the loterys

 

 

not sure about you guys but most rich people i have met have not been happy people , too worry'd about some one geting their money to be happy with what they have

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if they were not in it just for themoney lotery systems would have multipal pay out's of say $1 mill cash but to more people , haveing 30 $1mill winners would help more then 1

 

also the biger the winnings the more the holders make an the less they pay out ,,the pay out over 30 years is such that the oreg moneys are still there and all you pay out is intrest on the total,, it's a win win for the lotery people that hold the loterys

 

 

not sure about you guys but most rich people i have met have not been happy people , too worry'd about some one geting their money to be happy with what they have

 

I've met some really happy people that are pretty well off and wealthy. My mother in law has some friends that are filthy stinking and they pretty well adjusted god loving peeps. Don't let the horror Hollywood celeb stories fool you to believing that everyone with money is an alcoholic pain med coke addict with serious depression issues.

 

I think it would be a strange thing to go from just surviving to having a boat load of money. Alot of those folk don't know what the heck to do with it. Not to mention all the moochers that pop out of the woodwork to pretend to be your friend or your "favorite" family member after winning big bucks. I think that's where the depression comes for alot of winners.

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I'd pay off my 3 credit cards, my car loan, my cell phone bill, and the buy a nice house with a garage that has heated floors....and a lift, toolboxes full of tools. Out behind the garage....would be my collection hut. All of the cars I collect would get tossed in there.

 

1987 Toyota Supra Turbo Targa

1995 Toyota Supra Twin Turbo Targa

1977 Datsun 280Z

1980 Datsun 280ZX Black Gold Edition

1983 Mitsubishi Starion

1989 Mitsubishi Starion ESi-R

1999 Mitsubishi 3000GT in Yellow

1988 Mazda RX-7 TurboII

1995 Mazda RX-7

1968 Dodge Charger R/T

1970 Dodge Challenger R/T

1971 Plymouth 'Cuda

1969 Imperial Brougham

1977 Pontiac Trans Am

1984 Pontiac Trans Am

2004 Mercury Marauder

2005 Ford Mustang GT

 

this is just the beginning. Blah

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