A cash payout is equal the the amount that would be paid for an annuity that would 44M over 20 or 26 years (depending on the lottery). When the prime rate was 7%, yes that was about 22M, currently it’s 28M to 33M, depending on the payout length.That would put you in the 35% tax bracket, for an after tax payout of 18M to 21M, split with Boyd, 9M to 10M each.
Invested in 10 year term CDs, at 2.40%, would provide a monthly income of @ 20K, or an annual income that would put each of you in the top 5% of the nation.
Carefully invested in diversifed stock and bond markets, with a long term 7% annual return, and you would be in the top 1%.
We’ve talked about this at work. If we were to win the lottery, we determined we’d go straight to a financial advisor to determine the best course of action regarding what to do with our winnings. Yes, I know advisors cost money, but heck, I’d be a millionaire!
A tax on desperation. You rarely see a millionaire in the winners’ lists, and most winners say in the interview that they will just pay off debts and keep working in the same old job. The psychological damage to winners is horrendous and therefore never appears in the corporate media unless fatal.
kittylover2 over 12 years ago
If you don’t want I’ll take it. No problem.
rayannina over 12 years ago
Lottery: a tax on people who can’t do math. (Unlike Annie.)
Evan2061 over 12 years ago
Lottery: a fool’s tax
palepink Premium Member over 12 years ago
Five mil plus a rich best friend, Lila!
Miserichord over 12 years ago
The math is a little more complicated than that.
A cash payout is equal the the amount that would be paid for an annuity that would 44M over 20 or 26 years (depending on the lottery). When the prime rate was 7%, yes that was about 22M, currently it’s 28M to 33M, depending on the payout length.That would put you in the 35% tax bracket, for an after tax payout of 18M to 21M, split with Boyd, 9M to 10M each.
Invested in 10 year term CDs, at 2.40%, would provide a monthly income of @ 20K, or an annual income that would put each of you in the top 5% of the nation.
Carefully invested in diversifed stock and bond markets, with a long term 7% annual return, and you would be in the top 1%.
Zaristerex over 12 years ago
We’ve talked about this at work. If we were to win the lottery, we determined we’d go straight to a financial advisor to determine the best course of action regarding what to do with our winnings. Yes, I know advisors cost money, but heck, I’d be a millionaire!
Peachguy82 over 12 years ago
Lila is so selfish. If she doesn’t want her five million, she can always just give it to Boyd.
IQTech61 over 12 years ago
The tax rate on such a prize is 40%, not 50%.
Phatts over 12 years ago
what’s the point of not paying tax if I have to give you half???
hippogriff over 12 years ago
A tax on desperation. You rarely see a millionaire in the winners’ lists, and most winners say in the interview that they will just pay off debts and keep working in the same old job. The psychological damage to winners is horrendous and therefore never appears in the corporate media unless fatal.