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237 million up for grabs on new years eve
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237 million up for grabs on new years eve
of a way to start the new year if you were to win.
if anyone wins in this thread, they should also give everyone here $500.
Pffffttt.
I always contend that the first people I would tell are the best lawyer and accountant I can find. The lawyer would be there to keep the accountant from ing me, and the accountant would be there to let me know if the lawyer is skimming money off the top.
If I won that kind of money I would buy a midget.
355 mil or a 224 mil lump sum being drawn tonight...
its gone up like 50 mil since saturday
I actually bought 10 tickets!
Sure, wtf. I could use $500.
i bought 3 tickets i'm awesome
I'm in.
(time to create 100 trolls to post in this thread...)
A quick (and very loose) calculation of the expected payout of a lottery ticket for this size jackpot reveals that it is actually a good investment to purchase this lottery ticket (i.e. the expected payout is slightly higher than the dollar cost of the ticket.)
I only based this on the 355 million annualized payout, but did not factor in the time value lost over the 26 payments. Additionally I didn't factor in the expected value of non-jackpot payouts. So its possible that this is still not a good investment, but it is close.
Edit: Awww, scratch that. I really don't know enough about the non-jackpot payouts to make such a claim. I have bought 1 lottery ticket in my life and it was a scratch off (+$7!). All I can say is that for a $1 ticket, and a 355 Million dollar payout (if it was lump sum at that amount), then the expected payout is higher than the cost of the ticket.
Last edited by Drachen; 01-04-2011 at 04:18 PM.
Would y'all get the lump sum or monthly? I'd do monthly to save quite a bit on taxes overall, BUT that means more than likely the government will likely get it all back once I've shuffled off this mortal coil.
i could live with 224 million
Definitely lump sum. Take your tax hit at current rates and put it in a trust. Make sure all income from then on is taxed as capital gains.
probably the lump sum. It kinda depends on the rate that they are discounting it from the 355 million to get back to the 224 and if I think I can earn more over the same time span with the 224 lump sum (I don't have my financial calculator with me to figure this out). How would it help your tax situation? I would assume that even the payment option would put you in the highest tax bracket.
Damn, but you lose so much money. I have a hard time giving the government money. Very hard time.
It's annual payments. You are gonna pay taxes on it anyway and the ordinary income rate could be a lot higher than it is today.
Take the lump sum, pay taxes on it, then invest it at a decent return and pay cap gains tax at 15% on your profits and you still come out ahead in the long term.
You aren't taking inflation and taxes into account on those 26 annual payments.
Definitely lump sum.
I bought mine.
I'd blow about 20 million right off the bat and just invest the rest. A modest Texas Ranch, A modest Montana Ranch, A house in Pedregal in Cabo and a modest 40ish foot sportfisher.
How very modest of you.
It's practically his middle name
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