So with all this money, will you.....

dereksbicycles said:
Wow, you have to pay taxes on money you have in your account!!???

I mean, the interest rate is so low. IF taxes were more than the interest rate, then what is the point of having an account? Just stash money in closet or somewhere where no one will even think of looking.
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Yes, that interest is taxable income, but I don't think it's a case of earning $35k in interest and having to pay $42k in taxes on it. However, that's not the whole story, and I always trip up the bankers trying to get me into savings accounts - the inflation rate is higher than the interest rate, so even though you have $100 in the bank and you earn $5, giving you $105 at the end of the year (and you DON'T get near that on these accounts), if gas was $3.50 at the beginning, it would only have to rise to $3.67 to wipe out the interest rate earnings. The interest/gas example used 5% interest and inflation rates to illustrate the point. So, the money in the closet or in a concrete cube with 15-feet-thick walls is LOSING value.
 
Yeah, this is true.

I would have invest into something and hope for fat ROI (Return On Investment). All investment are generally risk, but far less risky than winning lottery ticket.

The idea of interest rate is really based on risk factor. If you want guarantee ROI, saving is one way to do but with stinky low rate that no one wants it. If you decided to invest something that may be very risky, you either lose big or win big. So, one way to guarantee some ROI is to diversify the investment. Don't be like one of these Enron former employees that invested entirely on Enron Stocks.

Stocks is not just only place to invest. You could come up with somebody that got brilliant idea and need your money. You could invest in that person if your predict is correct on their brilliant idea marketable, you could hit another jackpot, or another cliff. One way or other. You could go up in Alaska and buy equipments in hope to find more gold. That is another possibilities to get even richer.

Bottom line is when one hits jackpot the shock is sheer that can throw weak mind off havoc. Its like go bed rags, then wake up rich the next morning. I think that is where people get thrown off. Very small percentage of people can handle that kind of shock and will come out just fine.

deafdrummer said:
Yes, that interest is taxable income, but I don't think it's a case of earning $35k in interest and having to pay $42k in taxes on it. However, that's not the whole story, and I always trip up the bankers trying to get me into savings accounts - the inflation rate is higher than the interest rate, so even though you have $100 in the bank and you earn $5, giving you $105 at the end of the year (and you DON'T get near that on these accounts), if gas was $3.50 at the beginning, it would only have to rise to $3.67 to wipe out the interest rate earnings. The interest/gas example used 5% interest and inflation rates to illustrate the point. So, the money in the closet or in a concrete cube with 15-feet-thick walls is LOSING value.
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dereksbicycles said:
Wow, you have to pay taxes on money you have in your account!!???

I mean, the interest rate is so low. IF taxes were more than the interest rate, then what is the point of having an account? Just stash money in closet or somewhere where no one will even think of looking.
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If you win the lottery so you are required to pay taxes so it is LAW.
 
If 578 million dollars were paid in lump sum, the winners will get about 144 millions dollars. That is after the annuity were deducted and the taxes were paid. But if no lump sum, then the winners gets about 14.5 millions dollars each year after taxes were paid for, and for 20 years.

I am not sure which way is better, but from some of financial advisers suggested get sum lump so can get better return.
 
diehardbiker said:
Did you know that more than 50% of lottery winners aren't happy after 3 years.

Once you hit lotto, you are going to be forced to change lifestyle and change friends cause if not change, you will get constantly harassment from anyone asking for money. You can't hide that you won lotto jackpot. Only two states that allows anonymous but remaining anonymous is almost impossible.

These mandatory changes, I don't want to deal with. So it is not worth the dollar.
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because they don't know how to spend it or live with it.
 
dereksbicycles said:
Do you get tired of hearing......

"What will you do if you won the lottery?"
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pay off debt and my family's debt. fund my dad's business. begin my life as an entrepreneur and philanthropist. will ask to be a client of Berkshire Hathaway.

dereksbicycles said:
"If you had $1 million, what will you buy?"
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couple of agencies.

dereksbicycles said:
Jackpot: $50 million. What will you do with jackpot?
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be the Lex Luthor of NJ and kick Donald Trump out

dereksbicycles said:
"So you got the winning #, what will you do?"
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claim the ticket.

dereksbicycles said:
Don't you get tired of reading all those questions? Good grief, ya know!!! Do we run around and ask people what they're going to do with their money?
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:dunno:
 
deafdrummer said:
Just move without a forwarding order, toss your phone and your computer, and STFU. Dress poorly (or at best, decently with common clothes) and drive only a decent car, preferably used. Do not move into a McMansion. Also, act like you are having some financial difficulties (say that you're having car problems, and that you're having to pay off the repair over the next 3 months). Anything to cover up the fact that you're now a sugar mama or daddy.

You need to avoid being a hostage or a ransom magnet, or even a robbery magnet. You see, now that you have these millions of dollars, you'll learn that it's one thing to have it, it's another to keep it. The above is what Old Money does, except that the money has been in the family for generations. It's the nouveau riche who give themselves away with Bentleys parked at McMansions in "exclusive" neighborhoods. After you have lived the fast life, you get tired of the attention and look for ways to hide, as I described above.

You see, there are always people out there looking for a way to separate you from your money, especially if they find out you're loaded.

I would love to have this problem, except someone in the family of a previous generation blew it and handled the money poorly. We lost hundreds of years of progress in the family and had to start over. * I * was the youngest victim of it. I saw it all happen from ages 7-9 and learned just how fragile everything is. Enjoy it while you can, as you can't take it with you in the end...
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hostage? ransom target? this is not Colombia or Mexico, you know?
 
Jiro said:
couple of agencies.
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Go halfway with me and buy out TSA and DHS and shut them down.

(I know, I know, you have to either get a bill or something passed to either shut them down or at least "defund" them so they can't operate)
 
deafdrummer said:
Go halfway with me and buy out TSA and DHS and shut them down.

(I know, I know, you have to either get a bill or something passed to either shut them down or at least "defund" them so they can't operate)
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easy - buy politicians to do it :lol:
 
My husband buys a couple of lottery tickets each week, I buy them a few times a year. A million dollars would be wonderful - we could pay off the house, upgrade our vehicles, put some aside to help our kids put a downpayment on a home someday, share a little with our immediate family and invest what remains. Essentially it would make us feel financially secure. However, when it comes to BIG lotteries like 550 million, no thanks, I wouldn't want to win that kind of money - too permanently and vastly life-changing. I actually think all lotteries should be capped at 1 or even 5 million. I would rather see 550 families benefit from a million than one person hit 550 million.
 
Journey said:
My husband buys a couple of lottery tickets each week, I buy them a few times a year. A million dollars would be wonderful - we could pay off the house, upgrade our vehicles, put some aside to help our kids put a downpayment on a home someday, share a little with our immediate family and invest what remains. Essentially it would make us feel financially secure. However, when it comes to BIG lotteries like 550 million, no thanks, I wouldn't want to win that kind of money - too permanently and vastly life-changing. I actually think all lotteries should be capped at 1 or even 5 million. I would rather see 550 families benefit from a million than one person hit 550 million.
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Nice idea.

And actually, 1 million would generate an average of $50,000 a year invested at 5%. In a broad stock market fund, it would generate an average of about $100,000 a year at 10%.

A million is plenty to live on, if handled right.

These large jackpots are half way to billionaire status.

My parents said they'd give away all the money after taking care of the family first.

I'd do the same.
 
$1mil: Buy a home outright so no mortgage or rent, maybe a decent car, invest/put rest into high interest savings.

$50mil: As above but for family too.
 
Journey said:
My husband buys a couple of lottery tickets each week, I buy them a few times a year. A million dollars would be wonderful - we could pay off the house, upgrade our vehicles, put some aside to help our kids put a downpayment on a home someday, share a little with our immediate family and invest what remains. Essentially it would make us feel financially secure. However, when it comes to BIG lotteries like 550 million, no thanks, I wouldn't want to win that kind of money - too permanently and vastly life-changing. I actually think all lotteries should be capped at 1 or even 5 million. I would rather see 550 families benefit from a million than one person hit 550 million.
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I like that idea.
 
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