There's a reduction off the top if you take the cash option (instead of the 30 year annuity) - I think that would drop it right off the bat to 950 million or so. Then taxes come out of that (39.6% federal I think, plus whatever state taxes might apply).
Yeah, we wouldn't be taking the cash option. But I'm still not convinced it would be a 70% reduction, unless, maybe, you're just showing up without talking to someone. Maybe.
I found it!
Apparently, if you live in NYC, you will take home the least amount of money, paying a total of 48.5% for federal, state, and city taxes combined. So if you already slash your winnings by taking the cash option (which is 930 mil atm), you're looking to pocket 478.95 mil.
Assuming the same calculation works on the annuity, you pocket 772.5 mil.
Yeah, we wouldn't be taking the cash option. But I'm still not convinced it would be a 70% reduction, unless, maybe, you're just showing up without talking to someone. Maybe.
Yeah, you def end up with more money total with the annuity. Not much of a way to avoid federal taxes though, and the annuity would still be large enough that each installment would have the 39.6% tax. Maybe you could quickly buy a house in a non-income tax state?
Sadly, I'm pretty sure you have to claim in the state you bought the ticket. So unless you're buying in a non income state and then move your residence there, I don't think that would work. And maybe not even then if they prove you didn't live there before you won.
Yeah, you def end up with more money total with the annuity. Not much of a way to avoid federal taxes though, and the annuity would still be large enough that each installment would have the 39.6% tax. Maybe you could quickly buy a house in a non-income tax state?
But with inflation over time...wouldn't that annuity be losing it's buying power over time?
Also, if you were to invest a big chunk of the winnings, you may see it grow larger than the annuity over 10-15 years. But that depends on stock.
I dunno. This is why I am not a financial planner.
Oh, I would totally take the cash option and invest a big portion for these reasons. But with annuity there is at least less risk of accidentally losing it all on hookers and blow.
Yeah, you def end up with more money total with the annuity. Not much of a way to avoid federal taxes though, and the annuity would still be large enough that each installment would have the 39.6% tax. Maybe you could quickly buy a house in a non-income tax state?
Sadly, I'm pretty sure you have to claim in the state you bought the ticket. So unless you're buying in a non income state and then move your residence there, I don't think that would work. And maybe not even then if they prove you didn't live there before you won.
Yeah, we wouldn't be taking the cash option. But I'm still not convinced it would be a 70% reduction, unless, maybe, you're just showing up without talking to someone. Maybe.
I am such the Debbie downer in this thread... Always assume even with the haircut, you can invest your money better than the gov't can for you. I haven't looked at stats recently, however historically, over time, personal performance has been better than the annuity xoxo
But, see, the headache of investing the whole lot isn't worth the headache for us. We'll invest our ridiculous annuity and still have more money than we know how to deal with, haha.
Yeah, you def end up with more money total with the annuity. Not much of a way to avoid federal taxes though, and the annuity would still be large enough that each installment would have the 39.6% tax. Maybe you could quickly buy a house in a non-income tax state?
But with inflation over time...wouldn't that annuity be losing it's buying power over time?
Also, if you were to invest a big chunk of the winnings, you may see it grow larger than the annuity over 10-15 years. But that depends on stock.
I dunno. This is why I am not a financial planner.
Fun fact! You don't get the same payment each year. It starts smaller than average and increases by 5% each year until paid out!
But with inflation over time...wouldn't that annuity be losing it's buying power over time?
Also, if you were to invest a big chunk of the winnings, you may see it grow larger than the annuity over 10-15 years. But that depends on stock.
I dunno. This is why I am not a financial planner.
Oh, I would totally take the cash option and invest a big portion for these reasons. But with annuity there is at least less risk of accidentally losing it all on hookers and blow.
That's one of our biggest reasons we'd go annuity. It would be less likely to spend irresponsibly and go flat broke.
TTC since July 2014. CP March 2015. IVF #1 March 2016, 5R, 3M, 2F with ICSI. Transferred 2 on day 3. CP. Surprise BFP and then CP August 2016 (prep cycle for IVF). IVF #2: zero eggs retrieved IVF #3: 6R, 5M, 5F, 3 (2 8A and 1 11A) transferred, one "B" graded embryo frozen on day 5. BFP (at home 7dp3dt, confirmed 14dp3dt with 1552 beta) and U/S at 5w5d, 2 sacs and 2 yolks!
TTC since July 2014. CP March 2015. IVF #1 March 2016, 5R, 3M, 2F with ICSI. Transferred 2 on day 3. CP. Surprise BFP and then CP August 2016 (prep cycle for IVF). IVF #2: zero eggs retrieved IVF #3: 6R, 5M, 5F, 3 (2 8A and 1 11A) transferred, one "B" graded embryo frozen on day 5. BFP (at home 7dp3dt, confirmed 14dp3dt with 1552 beta) and U/S at 5w5d, 2 sacs and 2 yolks!
Post by kawaiikitsune on Jan 12, 2016 20:43:50 GMT -5
Pay off debt Buy a house for his parents & my mom Pay off my grandparent's house Take an extended vacation Buy a house here in Fl. and also a state of our choice Donate to charity and some animal/no-kill shelters Fill a room in our new house with old-school arcade cabinets Buy a new car (nothing too crazy, just something reliable) Invest some and put the rest in the bank
Saw RE 1/11/17 HSG x 2 - 2nd revealed both tubes open and arcuate uterus Cycle #1-2 Femara 5mg + TI = Cancelled - poor response Cycle #3 - Femara 7.5mg and Dex 0.5mg - another poor response - waiting to see when I O
I would buy houses in Silicon Valley and LA, and then start a venture company that funds a) social-interest technology companies b) awesome movies and TV shows and c) programs for "at-risk" kids. I would hire a bunch of people who are way smarter than me to manage the company's finances.
I'd do what PepperPottsJ, said (lawyer, financial planner... Hopefully Dave Ramsey is available) pay off all debt, set up a trust for my brother (he's developmentally delayed) and one for my mom (which will be rolled into my brother's when she passes) invest the rest so we can live comfortably off the interest.
Post by peaseblossom55 on Jan 13, 2016 19:10:09 GMT -5
Pay off our mortgages take a few nice vacations invest pay off family's mortgages I'd like to think we would keep our same house-just do some really nice upgrades though.
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