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Re: Lottery Winner to become Accountant
Old 02-23-2006, 08:46 AM   #21
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Re: Lottery Winner to become Accountant

Quote:
Originally Posted by Spanky
The winning of $15.5 million (in lump-sum) is after taxes.
Spanky, the $600,000 per year number is a reference to the 4% (of $15m) SWR.

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Re: Lottery Winner to become Accountant
Old 02-23-2006, 08:50 AM   #22
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Re: Lottery Winner to become Accountant

I'd like that SWR. Probably couldnt spend it sustainably unless I went the yacht, airplane and 5 homes routine.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 08:58 AM   #23
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Re: Lottery Winner to become Accountant

Quote:
Originally Posted by Cute Fuzzy Bulldog
I'd like that SWR. Probably couldnt spend it sustainably unless I went the yacht, airplane and 5 homes routine.
Yep. Me and my work buddies were discussing exactly this scenario. $600,000 a year - what would you do? It would have to be a small yacht and a small airplane/jet. And 5 reasonably luxurious homes (nothing too extravagant).

I did get to tell my buddies about the 4% rule of thumb. One guy (27 or so) said if he won the $15 million, he would work till he's 35 or so, then retire. Of course our jobs ain't half bad That's my plan anyway. Work till 35 or so, then retire. I probably won't have a $600,000 SWR though.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 09:01 AM   #24
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Re: Lottery Winner to become Accountant

Well, if you retire with 600,000, you could go with the one year, 600k nswr plan. Live it up. Then go back to work. You'll really appreciate the work better. By the way, I have a financial consulting plan to sell you to help you spend the money. No active thought or planning required. Just hand me the 600k and enjoy the ride of your life. I'll be there with you to make sure nothing bad or unexpected happens. Oh yeah, and my wife and son and three dogs will be along as well.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 09:17 AM   #25
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Re: Lottery Winner to become Accountant

Who saw the meatpacker on the news who was talking about how much his family needed this money because they "lost everything" in a house fire 2 years ago. He also indicated they were living "check to check". He finally mentioned that the night they won he had just been "cleaned out" at the local casino :


ok, I'm a little bitter

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Re: Lottery Winner to become Accountant
Old 02-23-2006, 09:24 AM   #26
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Re: Lottery Winner to become Accountant

Quote:
Originally Posted by saluki9
ok, I'm a little bitter
Don't worry. He'll be back to the working world soon enough.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 10:05 AM   #27
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Re: Lottery Winner to become Accountant

Oh definitely. He'll be back to the casino trying to roll up some 'real money'.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 11:12 AM   #28
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Re: Lottery Winner to become Accountant

There is another way to do this for the unknowing.... take the annuity!!! That way, you get your check each year for 20 or 30 years (according to which lottery)...

BUT, then you have some dumb people who can not even do that well. There was one guy who had his lottery winnings as an annuity... spent all his money and ran up debt as he knew he was getting more... well, the next check did not even cover his debts... so he decided to factor his winnings... they did a present value of his winnings and then discounted them another 40%!!!

The guy is probably out of cash right now because that was about 5 years ago...
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 11:14 AM   #29
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Re: Lottery Winner to become Accountant

Then you bump into the clowns who will let you "sell" them your annuity in exchange for a lump sum now. Thats considerably smaller than the one you'd have gotten from the lottery in the first place. Or people who let you "borrow" against your annuity payments.

Many lottery winners who take the annual payments run out of money and miss the spending, and go this route. Sad.
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Re: Lottery Winner to become Accountant
Old 02-23-2006, 11:22 AM   #30
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Re: Lottery Winner to become Accountant

In 1969 I won the draft lottery - my birthdate was number 360 in the order of who would be drafted to go to VietNam. I was going to lose my college deferment within a few months, so winning was a big deal in my life.
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Re: Lottery Winner to become Accountant
Old 02-24-2006, 04:17 PM   #31
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Re: Lottery Winner to become Accountant

Quote:
Originally Posted by brewer12345
Who knows what it means to somebody like an immigrant meatpacker?* People get funny ideas about what others' daily lives are like.* Plus, I guarantee you that the poor guy has no clue about money and has never given a thought to what life would be like if he didn't have to work.

I think I'd like to spend a lot of time volunteering after I retire.* How many people spend a couple of decades earning and saving so they can spend their days trying to housebreak stray dogs?
I don't housebreak stray dogs, but I do adopt (max of 2 at a time) those that have become "homeless"* (see my link).* It certainly beats going to work, and I get a lot of "kisses" for my effort!

-Ron (Already F.I. - awaiting a good exit point for R.E.)
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