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Magnificent Bastard

Powerball 1.3 Billion

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Yeah but no. After someone wins it resets to 40 million. You going to spend $350+ million to "win" 40 mill AND risk sharing it potentially with another winner.

 

Flawed theory

 

Yeah but how many people can say they've won two Powerballs? :shocking: You can't buy an icebreaker like that. :dunno:

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Based on the above marketwatch article posted by Bunny, the rate on the 30 yr annuity is about 1.65%.

 

900 million = 558 million × 1.0165 ^ 30

 

You'd pay more in taxes taking it all in one lump sum however tax rates could go up. Historically speaking, income taxes have certainly been higher in other time periods.

Now you could potentially take the annuity option and move (for year 2) to an income tax-free state which would help at all but the federal level.

And go buy things in sales tax-free states.

 

But regardless, if you can't beat the 1.65% rate then you are doing it wrong.

 

Is there really no beneficiary continuation option?

That doesn't seem legit.

There's no doubt then you'd take the lump sum.

Lump sum is better without question. Anyone who says otherwise doesn't understand what they are talking about.

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Yeah but how many people can say they've won two Powerballs? :shocking: You can't buy an icebreaker like that. :dunno:

I'm pretty sure "hey, I have $750,000,000" is all the icebreaker you need.

 

That will get you into any chicks pants you want. And her sisters. At the same time.

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And hope you don't get focked in the ass like Detroit bond holders.

You don't have to hope. You just have not be stupid enough to lend money to Kwami Kilpatrick.

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You guys need to all start sucking up to me now. I joined a pool here at work when it was $500m or whatever on Jan 6. Then we reinvested our $60 or so into more tickets, plus threw in more on Jan 9. Then we did the same for this one. Plus, 2 new side pools for bigger money emerged.

 

The thing is, when a pool forms, I have no choice but to join. Why? It's not because I need to be rich. It's me pitching in so that I don't have to kill myself if I say no and they win. Basically, I'm paying to ensure I'm still alive next week.

 

So the net result is.....I'm now part owner in 457 PowerBall tickets. Boom. :music_guitarred: I haven't done the exact math, but I think that gives me like a 35% shot of being a millionaire this time tomorrow.

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Lump sum is better without question. Anyone who says otherwise doesn't understand what they are talking about.

Annuity is the way to go. It's fact. You end up with 20% more money. And it's guaranteed. Doesn't stop if you die. Goes to your estate.

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Annuity is the way to go. It's fact. You end up with 20% more money. And it's guaranteed. Doesn't stop if you die. Goes to your estate.

I should probably qualify my statement: was too strong.

 

The best reason for taking the annuity is so you don't squander your money foolishly. But let's pretend we're not dumbasses that would do that even though most lottery winners probably are.

 

When you get past that reason there is not a good reason to take the annuity. Your 20% figure assumes that you invest in the same ultra low risk bonds as the annuity would. In that case, yes, you do end up with more $$ due to tax advantages.

 

But if you invest as a more typical investor and get, say, an 8% rate of return (average yearly market return) instead of the 2% on the annuity, I imagine you come out ahead. Now I'm not a tax analyst so there's the possibility that I'm wrong, but think about the magic of compound interest at a much higher rate of return spread out over 30 years. THAT'S why you go with the lump sum, IMO.

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8% Average return you say? Over how many years is that average determined? Is it the whole market, or just the Dow or the S&P? Applying a term like average without specific time periods of classifications of the investments tells you very little actually.

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Cuban's advice is pretty good, but I'd still give a million to each of my parents, in-laws and siblings.

 

http://www.wpxi.com/news/news/national/mark-cubans-advice-eventual-powerball-jackpot-winn/np4Jt/

 

Not sure if it's on Cuban's list of advice, but one of the first things I would do is pay an NFL punter to drop kick Cuban's nuts.

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Its funny to me that these lotteries are ultimately government revenue machines. There will be 1 billion + tickets sold, (no factoring in power play) so over $2 billion in revenue. they will pay out 935 million. The the lucky guy who wins will then give 50-55% back in taxes... So the government is netting 75% + of this

 

 

And the vast majority of tickey buyers are low income, who then complain about fair taxation.... lol

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Its funny to me that these lotteries are ultimately government revenue machines. There will be 1 billion + tickets sold, (no factoring in power play) so over $2 billion in revenue. they will pay out 935 million. The the lucky guy who wins will then give 50-55% back in taxes... So the government is netting 75% + of this

 

 

And the vast majority of tickey buyers are low income, who then complain about fair taxation.... lol

Its the best scam there ever was. The old mafia numbers racket. Sell 10 tickets, pay out 5 bucks, profit 5 bucks.

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Cuban's advice is pretty good, but I'd still give a million to each of my parents, in-laws and siblings.

 

http://www.wpxi.com/news/news/national/mark-cubans-advice-eventual-powerball-jackpot-winn/np4Jt/

So you want to put 400 million dollars in the bank. A bank that is FDIC insured for $250,000.00 ?

 

Does not sound like sound advice.

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8% Average return you say? Over how many years is that average determined? Is it the whole market, or just the Dow or the S&P? Applying a term like average without specific time periods of classifications of the investments tells you very little actually.

Cute.

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On one hand, the lottery allows the government to shamefully exploit it's poorest citizens with the worst payout odds on the planet. About as wrong as can be on so many levels.

 

On the other hand, the lottery helps keep poor dumb families in poverty for generations to come ensuring my kids, grand-kids, great-grand kids won't have to compete with them for college, jobs, neighborhoods, etc. Also helps lower everyone's taxes.

 

Yin/yang :)

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On one hand, the lottery allows the government to shamefully exploit it's poorest citizens with the worst payout odds on the planet. About as wrong as can be on so many levels.

 

On the other hand, the lottery helps keep poor dumb families in poverty for generations to come ensuring my kids, grand-kids, great-grand kids won't have to compete with them for college, jobs, neighborhoods, etc. Also helps lower everyone's taxes.

 

Yin/yang :)

It exploits the stupid.

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And helps pay for education. Oh the irony.

I always thought that was funny.

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Ok here's the play: biggest issue with winning something like this is the notoriety that comes with it. To do away with that, you first take the winning ticket and put it in a safe deposit box. Make sure you have copies pictures ect. You then contact a hedge fund or an investment bank that has access to 400 million or so. After assuring your privacy, you then sell the ticket to them, letting them be out front. Now the public doesn't know you won, and you might have a shot at a normal life.

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Ok here's the play: biggest issue with winning something like this is the notoriety that comes with it. To do away with that, you first take the winning ticket and put it in a safe deposit box. Make sure you have copies pictures ect. You then contact a hedge fund or an investment bank that has access to 400 million or so. After assuring your privacy, you then sell the ticket to them, letting them be out front. Now the public doesn't know you won, and you might have a shot at a normal life.

Trust Funds are your friend.

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Ok here's the play: biggest issue with winning something like this is the notoriety that comes with it. To do away with that, you first take the winning ticket and put it in a safe deposit box. Make sure you have copies pictures ect. You then contact a hedge fund or an investment bank that has access to 400 million or so. After assuring your privacy, you then sell the ticket to them, letting them be out front. Now the public doesn't know you won, and you might have a shot at a normal life.

What's in it for them - you sell it to them for a cash discount on the value of the ticket? :unsure:

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What's in it for them - you sell it to them for a cash discount on the value of the ticket? :unsure:

You give them a profit of 50 mill, and you get to remain anonymous, which would be worth 50 mil to me.

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What's in it for them - you sell it to them for a cash discount on the value of the ticket? :unsure:

You put the ticket in an LLC and sell them the LLC. Then when they cash it they can call the proceeds "carried interest" in the LLC instead of regular income, and pay capital gains on it instead of income tax. :thumbsup:

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You put the ticket in an LLC and sell them the LLC. Then when they cash it they can call the proceeds "carried interest" in the LLC instead of regular income, and pay capital gains on it instead of income tax. :thumbsup:

Nice - a good old fashion fiscal reach around. :thumbsup:

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Ok here's the play: biggest issue with winning something like this is the notoriety that comes with it. To do away with that, you first take the winning ticket and put it in a safe deposit box. Make sure you have copies pictures ect. You then contact a hedge fund or an investment bank that has access to 400 million or so. After assuring your privacy, you then sell the ticket to them, letting them be out front. Now the public doesn't know you won, and you might have a shot at a normal life.

 

I've always felt the notoriety factor was an over rated concern. If I win, I'm going to do plenty for the people around me anyway. So they'd know in any case. And word would spread to some acquaintances, causing some headaches, but I have the maturity to deal with them.

 

Beyond that, I can't imagine it being a big issue. I'm pretty plugged in and culturally aware, yet I can't tell you the name of one person (besides Thomas "Hollywood" Henderson) in the world that has won the lottery.

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I've always felt the notoriety factor was an over rated concern. If I win, I'm going to do plenty for the people around me anyway. So they'd know in any case. And word would spread to some acquaintances, causing some headaches, but I have the maturity to deal with them.

 

Beyond that, I can't imagine it being a big issue. I'm pretty plugged in and culturally aware, yet I can't tell you the name of one person (besides Thomas "Hollywood" Henderson) in the world that has won the lottery.

Google "lottery losers".

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Google "lottery losers".

I love reading these stories. It fascinates me that there really are people this focking stupid. :D

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Google "lottery losers".

 

Wouldn't that be a list of about 99.999999999999999999999% of anyone who has ever bought tickets?

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You put the ticket in an LLC and sell them the LLC. Then when they cash it they can call the proceeds "carried interest" in the LLC instead of regular income, and pay capital gains on it instead of income tax. :thumbsup:

 

I believe that some states have provisions that do not allow you to remain anonymous if you win the lottery. So, people are going to know who you are anyway.

 

Now, having an LLC isn't a bad option to shield things anyway, but anonymity will not be one of those things that is saved.

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I have never played the lottery before last week's drawing :shocking: I did read a couple of articles of how the way this newer powerball is set is such a huge ripoff that is designed to grow this monstrously large pots so the lottery/government can get more money, and is essentially just an increase on taxing the poor.

 

All that being said, even after taxes, some nobody, nothing from Bumfock, Whogivesashit will be richer than Kobe Bryant, Peyton Manning, LeBron James, Jay-Z, Beyonce, Elton John, Mick Jagger, Brad Pitt, Leonardo Dicaprio, Robert De Niro, ect.

 

An 18 year old kid who hasn't worked a day in his/her life can win this, they will have more value than Kobe Bryant.

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I have never played the lottery before last week's drawing :shocking: I did read a couple of articles of how the way this newer powerball is set up to be such a huge ripoff that is designed to grow this monstrously large pots so the lottery/government can get more money, and is essentially just an increase on taxing the poor.

 

All that being said, even after taxes, some nobody, nothing from Bumfock, Whogivesashit will be richer than Kobe Bryant, Peyton Manning, LeBron James, Jay-Z, Beyonce, Elton John, Mick Jagger, Brad Pitt, Leonardo Dicaprio, Robert De Niro, ect.

 

An 18 year old kid who hasn't worked a day in his/her life can win this, they will have more value than Kobe Bryant.

 

Well, if you have watched any basketball this year, that's not really much of a statement.

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Well, if you have watched any basketball this year, that's not really much of a statement.

 

:doublethumbsup: Fair enough. They will be WAY richer than Steph Curry and Kawhi Leonard.

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So you want to put 400 million dollars in the bank. A bank that is FDIC insured for $250,000.00 ?

 

Does not sound like sound advice.

I take it to mean you would spread that out over many different accounts.

 

Where do the ultra rich park actually park their cash?

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I was just at one of Convenience stores dealing with a printer issue. I would say 80-90% of customers are buying Powerball tickets and probably half are only buying Powerball tickets. I was there for probably 15 minutes, during the slow time of the day, and we sold probably $500 of Powerball tickets. And our Powerball machine went down briefly in the middle of it all.

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I believe that some states have provisions that do not allow you to remain anonymous if you win the lottery. So, people are going to know who you are anyway.

 

Now, having an LLC isn't a bad option to shield things anyway, but anonymity will not be one of those things that is saved.

If you sell the ticket before cashing it you would have your anonymity, or is that not allowed?

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If you sell the ticket before cashing it you would have your anonymity, or is that not allowed?

 

My guess is that it would depend on what state you live in. I am also not sure how, logistically, you would sell it in advance of cashing it in. Even if you find some company that has the free cash who is willing to buy the ticket from you for a portion off of the amount, they are not going to give you the cash and close the deal until they have their cash in hand. In that situation, they would be risking that the state/lottery would hold things up and, if they have that kind of cash already, why would they take that risk?

 

I still have to buy my ticket for today, so I can't read the fine print on the back, but my guess is that the respective states have their laws published somewhere. :dunno:

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My guess is that it would depend on what state you live in. I am also not sure how, logistically, you would sell it in advance of cashing it in. Even if you find some company that has the free cash who is willing to buy the ticket from you for a portion off of the amount, they are not going to give you the cash and close the deal until they have their cash in hand. In that situation, they would be risking that the state/lottery would hold things up and, if they have that kind of cash already, why would they take that risk?

 

I still have to buy my ticket for today, so I can't read the fine print on the back, but my guess is that the respective states have their laws published somewhere. :dunno:

That ticket is your possession. If you want to sell it, it's none of their business. Besides, how are they going to know?

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Ill say it again, always take the lump sum nomatter how bad they screw you. Bird in hand my friends, bird in hand. With my luck, id sign away for the annual payments and then some federal scandal will hit a day later seizing all lotto activity and ill get bupkis. Or 50 random tax lawyers will appear and make some phony case against me and force me to sign it away. Dont care if I only get 10mil out of the billion, give me my check and im gone, poof, like the wind.

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I take it to mean you would spread that out over many different accounts.

 

400,000,000 will be 1,600 different banks / accounts.

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