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Re: $315M Powerball Winner is now broke
Old 01-15-2007, 06:14 PM   #21
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Re: $315M Powerball Winner is now broke

Until he was sought out by one of the companies that 'buys' your future annual payouts with an immediate lump sum...
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Re: $315M Powerball Winner is now broke
Old 01-15-2007, 07:18 PM   #22
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by Cute 'n Fuzzy Bunny
Until he was sought out by one of the companies that 'buys' your future annual payouts with an immediate lump sum...

...which he could have then re-annuitized...

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Re: $315M Powerball Winner is now broke
Old 01-15-2007, 07:36 PM   #23
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by DRiP Guy
...which he could have then re-annuitized...
... all for suitable commissions, fees, and 12(b)-1 expenses...
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Re: $315M Powerball Winner is now broke
Old 01-15-2007, 07:43 PM   #24
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Re: $315M Powerball Winner is now broke

Rough estimate:

Jack Pot: 315,000,000
Annuity Payment (over 30 years): 10,500,000
AAA-rated general obligation bond yield (10 yr Treasury): 5.20%
Period: 30

Present value: $157,795,126.06
25% Federal Tax: $39,448,781.52
Virginia: 4% State Tax: $6,311,805.04
Payout after tax: $112,034,539.50 (not exactly $113M).
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 03:44 AM   #25
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Re: $315M Powerball Winner is now broke

And this guy was actually a millionaire businessman before he played the Powerball.

The claim for being broke is suspicious. His bank said something like they are investigating small discrepancies. In other words the amount claimed to have been stolen is very small.
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 10:54 AM   #26
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by Spanky
Rough estimate:

Jack Pot: 315,000,000
Annuity Payment (over 30 years): 10,500,000
AAA-rated general obligation bond yield (10 yr Treasury): 5.20%
Period: 30

Present value: $157,795,126.06
25% Federal Tax: $39,448,781.52
Virginia: 4% State Tax: $6,311,805.04
Payout after tax: $112,034,539.50 (not exactly $113M).
It was in WEST Virginia. There's a world of difference, especially in taxes.

Mike D.
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 11:00 AM   #27
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by Warthog

As soupxcan said, "people who actually know how to manage thier money, don't play the lottery".

-Warthog
is that an official litmus test here? sounds like a poll is in order!
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 11:21 AM   #28
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Re: $315M Powerball Winner is now broke

Who was it that said there was one investment worse than a lottery ticket...a second lottery ticket?
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 11:26 AM   #29
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Re: $315M Powerball Winner is now broke

I buy lotto tickets on occasion, but I am well aware of the odds. I know 99.9 cents of the dollar are allocated to entertainment value ( pondering with DW on what we'd do with the money etc.) and .1 cents is the value of the actual chance of riches....
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 11:31 AM   #30
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Re: $315M Powerball Winner is now broke

I'll admit to buying a ticket, but only if the jackpot is over 10 mil. The way I figure it, anything less than that doesn't offer enough "dream entertainment" to throw away the dollar.
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 04:11 PM   #31
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by Nords
... all for suitable commissions, fees, and 12(b)-1 expenses...
Exactly! Just seeing how quickly we could whittle that lump sum down to size
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 04:14 PM   #32
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Re: $315M Powerball Winner is now broke

Wil Rogers (or someone famous...) once said:

"A lottery is a tax against people who can't do math".....
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Re: $315M Powerball Winner is now broke
Old 01-16-2007, 04:24 PM   #33
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Re: $315M Powerball Winner is now broke

the lottery is a tax on the dumb
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Re: $315M Powerball Winner is now broke
Old 01-22-2007, 07:55 PM   #34
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by soupcxan
The problem is: people who actually know how to manage their money, don't play the lottery.
I feel dumb reading this thread. I play the lottery. I probably spend anywhere from $20 to $150 a year on it. Although honestly, I wouldn't want to retire based on it. I want the satisfaction that only comes from retiring through saving and investing.
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Re: $315M Powerball Winner is now broke
Old 01-22-2007, 08:53 PM   #35
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by NinjaPigeon
I feel dumb reading this thread. I play the lottery. I probably spend anywhere from $20 to $150 a year on it. Although honestly, I wouldn't want to retire based on it. I want the satisfaction that only comes from retiring through saving and investing.
I dissagree, the satisfaction comes in retiring, by whatever (legal/moral) method.
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Re: $315M Powerball Winner is now broke
Old 01-22-2007, 09:14 PM   #36
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by NinjaPigeon
I feel dumb reading this thread. I play the lottery. I probably spend anywhere from $20 to $150 a year on it.
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Re: $315M Powerball Winner is now broke
Old 01-23-2007, 07:48 AM   #37
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Re: $315M Powerball Winner is now broke

I pay my stupidity tax from time to time (probably about $20 a year). It is fun to dream of having more money than I would know what to do with.
I also feel a little left out, as I don't smoke and the smokers get to pay their own stupidity tax (which is likely much more than what I pay for mine).
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Re: $315M Powerball Winner is now broke
Old 01-23-2007, 07:59 AM   #38
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Re: $315M Powerball Winner is now broke

I play when the amount is over $75M. I read somewhere that it is "worth it" if the jackpot is over $80M or something - can't find the link right now...

I just do it for fun. If I spend $20 on it a year, it's not going to impact my FIRE plans!

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Re: $315M Powerball Winner is now broke
Old 01-23-2007, 12:04 PM   #39
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Re: $315M Powerball Winner is now broke

Quote:
Originally Posted by NinjaPigeon
I probably spend anywhere from $20 to $150 a year on it.
Quote:
Originally Posted by kaudrey
I play when the amount is over $75M. I read somewhere that it is "worth it" if the jackpot is over $80M or something - can't find the link right now...
I just do it for fun. If I spend $20 on it a year, it's not going to impact my FIRE plans!
You could look at it as a tax-deductible gambling loss against other gambling winnings, an investment education expense (good luck defending that to the IRS), or as a part of building a diversified asset allocation...
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Re: $315M Powerball Winner is now broke
Old 01-23-2007, 12:19 PM   #40
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Re: $315M Powerball Winner is now broke

A diversified portfolio of lottery tickets - Oklahoma, Texas, Kansas + most small tech companies.
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