Lotto winners don't seem to "win" much

[biosurfer1]

I was reading that the second $587.5 million powerball winner came forward in Arizona and they were breaking down how much each winner will get when all is said and done...and I was a bit surprised.

Being from different states, each will pay slightly different taxes but roughly get the same amount, which will be $114-$117 million.

I know on the surface that seems like a lot (which of course it is) but when you think that the total pot was originally $587.5, so half of that would be $293.75. I understand the taxes, cash option, etc but is it just me or does taking home only $117 million seem like a rip off when technically they won $293+ million?!?

Good problem to have, though

[ckissick]

I don't remember the figure, but if the winners had chosen the annual payments for 30 years, they would have gotten almost $100 million more. I'd rather take annual payments, since I'm young enough to collect all the payments. Also, with the annual payments, you can screw up year after year until you get it right. Kind of like Groundhog Day.

[BlueSkyJaunte]

Pretty sure I wouldn't turn up my nose at $114mil. I probably wouldn't complain that it wasn't $500mil, either.

[GWN7]

Give me the winning numbers and I'll be happy paying the taxes.

[Rick Lee]

I wouldn't take the annual payments, especially in this latest mega jackpot. The money will be worth so much less over the next 20 yrs. They don't index it for inflation or taxes. And, if you took the lump sum before we go over the fiscal cliff, you'd get many, many millions more than in 2013 and beyond. If you could invest that lump sum at 5% somewhere, you'd live the life of Riley without ever touching the principal.

[JJ 911SC]

Originally Posted by ckissick

I don't remember the figure, but if the winners had chosen the annual payments for 30 years, they would have gotten almost $100 million more. I'd rather take annual payments, since I'm young enough to collect all the payments. Also, with the annual payments, you can screw up year after year until you get it right. Kind of like Groundhog Day.

+1, so many people screw up...

Ours is tax free but the Jackpot stop at 50 Million and the rest go in extra 1 million draws.

[VaSteve]

Originally Posted by Rick Lee

I wouldn't take the annual payments, especially in this latest mega jackpot. The money will be worth so much less over the next 20 yrs. They don't index it for inflation or taxes. And, if you took the lump sum before we go over the fiscal cliff, you'd get many, many millions more than in 2013 and beyond. If you could invest that lump sum at 5% somewhere, you'd live the life of Riley without ever touching the principal.

Thats the theory, but please tell me where you're getting 5% these days?

[imcarthur]

My first stop would be the Cayman Islands to open an account.

Ian

[URY914]

I believe if you take the annual payments and get hit by a bus and die during week #2 your winnings stop.

[sc_rufctr]

Lots of TAX anyway you cut it but please let me have that problem

[Aggie93]

Originally Posted by URY914

I believe if you take the annual payments and get hit by a bus and die during week #2 your winnings stop.

9. What happens to Mega Millions payments if the winner dies before collecting?

If a winner dies before receiving all annual payments, Mega Millions will continue to pay the annual payments, as scheduled, to the winner's designated beneficiary or to the winner's estate.

Mega Millions Official Home

[strupgolf]

To clear the air on jackpot's, let me explain. When you see a big jackpot of say $500 million, there is not a jackpot of $500 million dollars sitting in a bank. The $500 million is say, $250 million, or $200 or whatever cash amount figure the lottery has on hand at that drawing, times 30 years worth of interest at today's rates. The higher the interest ,the lower the money neeed to pay out those annual payments. It's best to choose the lump sum payment because I can invest that money better then the lottery. If they say they will pay you for instance 150,000 per year for 30 years, and they invest your money and make 200,000, they will keep that extra $50k. If I invest it, I keep all the money. So when you see large jackpots, they don't exsist, it's only called compound interest.

[Jim Richards]

I would love to win back the $4 I spent on two tickets.

[VaSteve]

Originally Posted by Jim Richards

I would love to win back the $4 I spent on two tickets.

There's still hope:

http://forums.pelicanparts.com/off-topic-discussions/722547-ppot-gift-exchange-version-3-12-a.html

[Crowbob]

Plus, taking the lump sum allows you to slink off into nowhere w/o having to leave the paper trail for your new friends and relatives to follow.

[azasadny]

REDDIT had a thread with a guy who had won the lottery and it was very insightful and entertaining. I think the "rough" figure is that the net winnings are 1/3 the total amount won if you take the lump sum distribution. For instance, if you won $600M, you take home $200m. If you win $10M, you take home $3.3M, etc... This is after all taxes and reflects the decreased amount you "won" if you take the lump sum and not the annualized amount. Not too shabby, I might add...

[Rusty Heap]

Considering the average MLB Baseball player makes, yawn, $20 million a year?

ON A MULTI YEAR CONTRACT

so quick numbers, 20 mill yearly = roughly that's ~2 million a month, or $500,000 a week, or ~$65,000 a day?


oh yeah, baseball season is only what, 4-5-6 months a year too? so the rest is golfing and resting on YOUR island in the caribbean?

[Scott Douglas]

From what I've read and heard about winners, most only win a quick trip to the poor house.

[ckelly78z]

Originally Posted by Scott Douglas

From what I've read and heard about winners, most only win a quick trip to the poor house.

Only if you are undisciplined in your buying habits. I have learned to not go for impulse buys at all, and I know I am one of the few that could make even $1,000,000 last for a lifetime by only spending 20% and then living off the interest of the remaining $800,000.

[weseeeee]

Notsure if I could live a life time on 100 million, but I;d sure like to give it a try