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$315M Powerball Winner is now broke
01-15-2007, 09:05 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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$315M Powerball Winner is now broke
I guess for some people if would have been worth paying for financial advice. On the other hand, as the saying goes, you can't fix stupid
http://news.aol.com/topnews/articles/_a/hard-luck-lottery-winner-[...]
LINK shortened - BMJ
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Re: $315M Powerball Winner is now broke
01-15-2007, 09:57 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Re: $315M Powerball Winner is now broke
Wow, wasted $113 million in 4 years.
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May we live in peace and harmony and be free from all human sufferings.
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Re: $315M Powerball Winner is now broke
01-15-2007, 10:04 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,668
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Re: $315M Powerball Winner is now broke
Quote:
He took his winnings in a lump sum of $113 million after taxes.
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Maybe they (Powerball folks) should make you pass a test in money management before they allow you to take it as one payment. This guy surely is the poster child for annuitization.
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Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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Re: $315M Powerball Winner is now broke
01-15-2007, 10:08 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,005
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by mickeyd
Maybe they (Powerball folks) should make you pass a test in money management before they allow you to take it as one payment. This guy surely is the poster child for annuitization.
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They already have a test! You have to fill in 6 multiple choice answers on a scan sheet and submit it at the nearest gas station along with a $1 processing fee. I've tried taking this test on occasion and I never seem to pass it...
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Re: $315M Powerball Winner is now broke
01-15-2007, 10:11 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,668
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Re: $315M Powerball Winner is now broke
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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Re: $315M Powerball Winner is now broke
01-15-2007, 10:46 AM
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#6
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Recycles dryer sheets
Join Date: Oct 2005
Posts: 325
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Re: $315M Powerball Winner is now broke
sounds like a ploy. He's probably got it all stashed somewhere.
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Re: $315M Powerball Winner is now broke
01-15-2007, 11:07 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
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Re: $315M Powerball Winner is now broke
That's what I think. He's claimed "thieves" stole all his money to hide it from the lawsuits.
What a mess!
Audrey
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Retired since summer 1999.
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Re: $315M Powerball Winner is now broke
01-15-2007, 11:21 AM
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#8
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Full time employment: Posting here.
Join Date: Mar 2005
Posts: 927
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Re: $315M Powerball Winner is now broke
Quote:
Wow, wasted $113 million in 4 years.
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I could NEVER spend that much money in 4 years. I'd sure like the chance to TRY, though!
Since I don't pay the "California stupidity tax," however, I guess I'll never know.
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Re: $315M Powerball Winner is now broke
01-15-2007, 12:10 PM
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#9
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Recycles dryer sheets
Join Date: Oct 2005
Posts: 166
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by CybrMike
sounds like a ploy. He's probably got it all stashed somewhere.
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Ken Lay is looking after it for him.
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nil illegitimus carborundum
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Re: $315M Powerball Winner is now broke
01-15-2007, 12:17 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
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Re: $315M Powerball Winner is now broke
The problem is: people who actually know how to manage their money, don't play the lottery. Therefore, the vast majority of players are financially illiterate, and from that pool you get a few winners. Enter the media, who's happy to do some schadenfreude reporting.
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Re: $315M Powerball Winner is now broke
01-15-2007, 12:49 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 1,466
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Re: $315M Powerball Winner is now broke
I don't know which is worse, spending 113 million in 4 years or paying 202 million in income taxes Holy smokes!
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fuzzy? cute?
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Re: $315M Powerball Winner is now broke
01-15-2007, 12:49 PM
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#12
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Dryer sheet aficionado
Join Date: Jan 2007
Posts: 27
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Re: $315M Powerball Winner is now broke
This is actually pretty common. It's just that this guy won the biggest single drawing ever. I'd bet there are several stories like this dotted all over the country.
We had some neighbors win 100k on the lottery back in the 90's...they have nothing to show for it now.
As soupxcan said, "people who actually know how to manage thier money, don't play the lottery".
I remember reading somewhere that like 15% of people surveyed beleive that the only way they will be able to retire comfortablely is by winning the lottery. That's pretty pathetic
-Warthog
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-Warthog
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Re: $315M Powerball Winner is now broke
01-15-2007, 12:51 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by cube_rat
I don't know which is worse, spending 113 million in 4 years or paying 202 million in income taxes Holy smokes!
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I managed a big smile while writing six figure checks to the IRS and high five figure ones to the CA FTB.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: $315M Powerball Winner is now broke
01-15-2007, 01:26 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by cube_rat
I don't know which is worse, spending 113 million in 4 years or paying 202 million in income taxes Holy smokes!
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He didn't.
When you win powerball or Mega millions and you take the lump sum, you only get half of the listed jackpot.
FYI: My firm did work for a winner, I DO NOT play.
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Re: $315M Powerball Winner is now broke
01-15-2007, 01:31 PM
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#15
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Full time employment: Posting here.
Join Date: Sep 2004
Posts: 607
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by cube_rat
I don't know which is worse, spending 113 million in 4 years or paying 202 million in income taxes Holy smokes!
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Well, if you elect the lumpsum distribution, doesn't the jackpot amount get cut in half? So I think he actually paid "only" 44.5 million (315 / 2 - 113), which works out to be around 28%. That does seem to be a pretty low tax rate for such a large income.
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Re: $315M Powerball Winner is now broke
01-15-2007, 02:05 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by WanderALot
Well, if you elect the lumpsum distribution, doesn't the jackpot amount get cut in half? So I think he actually paid "only" 44.5 million (315 / 2 - 113), which works out to be around 28%. That does seem to be a pretty low tax rate for such a large income.
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Top income tax rate of 35% + state. He probably paid somewhere between 40-45% in taxes.
The "lump sum" discount isn't necessarily 50%. They pay you the present value of the prize ($315MM in this case) using some unknown (to me) discount rate.
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Retired early, traveling perpetually.
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Re: $315M Powerball Winner is now broke
01-15-2007, 02:06 PM
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#17
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 944
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Re: $315M Powerball Winner is now broke
Sounds like the guy was/is a boozer and gambler.....2 things when done together can be a disaster!
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Freed at 49. You only live once - live it
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Re: $315M Powerball Winner is now broke
01-15-2007, 03:49 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,668
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Re: $315M Powerball Winner is now broke
Quote:
Sounds like the guy was/is a boozer and gambler
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Well, at least it did not go to waste.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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Re: $315M Powerball Winner is now broke
01-15-2007, 04:39 PM
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#19
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Thinks s/he gets paid by the post
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
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Re: $315M Powerball Winner is now broke
Quote:
Originally Posted by 3 Yrs to Go
Top income tax rate of 35% + state. He probably paid somewhere between 40-45% in taxes.
The "lump sum" discount isn't necessarily 50%. They pay you the present value of the prize ($315MM in this case) using some unknown (to me) discount rate.
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I think they just get a quote on what current value they would need to buy an annuity payout equal to 315MM over 25 years (or however long the annual payout option is).
Quote:
Originally Posted by Donzo
Sounds like the guy was/is a boozer and gambler.....2 things when done together can be a disaster!
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Yes, but think of the economic boom in his area for barmaids, pole dancers and bookies. I bet they love the lottery.
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There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
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Re: $315M Powerball Winner is now broke
01-15-2007, 05:13 PM
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#20
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Re: $315M Powerball Winner is now broke
Here is a case where taking the annual payouts would definitly been better. The recepient would have had at least 20 years of expenses.
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