The roseburg couple won $10 million in the megabucks game. They decided to take the lump sum, spend some, and talked to a money consultant. After taxes they should have just over $3 million. http://www.kgw.com/news/Roseburg-couple-wins-10-Megabucks-jackpot-79729442.html What would your plans be? How much would they get per year if they took the 20 year payments instead? I personally would take the 20 year payments because you always hear of all these people getting broke after the first year. nate
You're taxed either way at some ridiculous percentage, right? Or if you take lump sum do you only get half? If it's the same amount of money, I'd want a lump sum, b/c I think I could do better than inflation over the next 20 years and I'm not going to spend it all makin' it rain at the Dancing Bear. But if I have to take a discount to get a lump sum---show me the most money!
It used to be many years ago as I recall that certain lottery winnings were not subject to state taxes. Me, I'd take the lump sum and then immediately invest half of it in Euros so when the dollar tanks I'm still making a good return.
I'd do the lump sum and put a bunch of it in a relatively stable investment such as precious metals or a very diversified mutual fund. The yearly payments may be like what....$300k/year for 20 years or so? In 20 years, $300k a year may not be all that much. I can't even fathom how a family of four, in today's age, can survive on $300k a year.
also, how about if you only lived like a year or two longer? You can sell your payment plan but you'll get further screwed.
It's bullshit that they tax your winnings. You've already paid taxes on the money you spent buying the lottery ticket.
Um, that's how the government makes money on the lottery. They make even more when nobody wins the prize.
I think the scam is they only give you 50% of the winnings if you want the lump sum. Since everyone takes it... the lottery pockets that extra money right? So they get 1/2... then pay taxes on the 5 million... which is where the 2 million comes from. I've always thought the lottery was really just a voluntary tax on poor people. Let me rephrase that... people we are not rich. (Which is most of us) If we really need that money to run our government... shouldn't it follow our normal tax laws? Imagine if all the money spent on lottery tickets was spent in the economy (and respent and respent) Government still gets their share in taxes.
