Someone in Texas won a lotto jackpot worth $800 million on Tuesday

Long Dark Blues said:
Plus, the annuity is inheritable/transferable to kin.

Never understood taking the lump sum.
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You can make a lot more investing the lump sum than you'd be gaining by doing the annuity, and your annuity loses value over 30 years because your payments stay flat but inflation makes it worth significantly less.

Let's just take the same numbers from 30 years ago to now. Taking the $262 million lump sum and just putting it into the S&P 30 years ago would be worth $5.25 billion today.

Taking the annuity of $500,000,000 in 2024 is equivalent in purchasing power to about $235,390,538.63 today, a decrease of $264,609,461.37 over 30 years.
 
Flower2dPeople said:
Had to google the aussie lottery because they love to tax the shit out of them bogans and to my surprised it's tax free.
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I sort of know it because I have a Aussie friend within our chat group. Everytime their lottery hits news worthy amount, he will ask if we wants to pool for buy in. Been doing it for a couple of years just for fun. He studied here in Primary School and Secondary school with us before returning to Hong Kong then to Australia.
 
Doesn't the government get a slice of the ticket purchases too? Over here there's no tax on the winnings of the lottery because the government takes the tax at the ticket buying stage.
 
Do you think this person will be happier? Or more money, more problems?
 
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Tone C said:
Yea, but you'd say that if you won too so we didn't know.....
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I would take the annuity as well. Sure if you take the lump sum you can compound it at a larger degree. But if you are not good with money or that amount scares you at least if you blow your first year's check via the annuity you get another chance at bat the following year.
 
IIIIIIII said:
i've never had that kind of money, but i would imagine managing it is a job until itself. if i ever were to win the lottery, i'd retire. but i'd retire to simply focus on the money and the best way to invest it, etc. i hear too many stories of money managers stealing from clients, so you should do it yourself. something like ten million would be enough for me. have enough to have all i want, and the rest can earn interest and i don't have headaches to deal with. like what bill gates did with his kids. ten million for each, and that should be enough of a foundation to start on.
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Texas doesn't have anonymity laws as far as I know so I'd open it in a trust instead of my name. I would add the kids to the trust which would mature when they're in the mid 30s and I'd never tell them we won

there would be signs but I wouldn't buy a Ferrari or similar and I'd buy land somewhere west I could hunt on and eventually build on.

not sure if I'd retire immediately, maybe when I hit 50
 
chill doggie said:
www.cbsnews.com

Mega Millions player wins $800 million jackpot with ticket bought at Texas gas station

The winning numbers for the $800 million Mega Millions jackpot were white balls 1, 2, 16, 24 and 66, and the gold Mega Ball 6.
www.cbsnews.com www.cbsnews.com

“A jackpot-winning ticket worth an estimated $800 million for the Mega Millions drawing held on Sept. 10, marking the largest lottery jackpot prize ever won by a Texas Lottery player.
The ticket was purchased in Sugar Land at Murphy Express 8848, located at 7520 Highway 90A. It matched all six of the numbers drawn (1-2-16-24-66, Mega Ball 6).
The player chose the cash value option at the time of purchase, which was estimated at $404 million before taxes. The prize has not yet been claimed.“

The lucky soul will have the Texan privilege of both choosing whether or not to remaining anonymous and also of not paying any state taxes.

They also have the option to change their mind on their payment method, after doing some research I finally confirmed that the initial selection between “lump sum” and “annuity payments” isn’t binding.
So if they do the right thing and choose annuity they will avoid forfeiting about half of the prize (before taxes), and then they would “only” lose about $300 millions in federal tax.
The first payment would be $7.3 million, next year it would go up to $7.9M, and the subsequent payments would fractionally increase until the last one which would be $30m.

So much for local lotto conspiracy folks that say Texans never win because they hate our liberties.
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Was it you?
 
Always take the annuity.

You've never had that much money before, chances are you'll make some mistakes along the way.

Bad investments, inadequate tax sheltering, not being able to say no to family and friends, and con artists at that level are very skilled. Way more so than the small time con artists you encounter today.

So if you take the annuity you can make those mistakes and still have money coming to you each year.
 
Cool Hand Luke said:
Texas doesn't have anonymity laws as far as I know so I'd open it in a trust instead of my name. I would add the kids to the trust which would mature when they're in the mid 30s and I'd never tell them we won

there would be signs but I wouldn't buy a Ferrari or similar and I'd buy land somewhere west I could hunt on and eventually build on.

not sure if I'd retire immediately, maybe when I hit 50
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If you win more than $1M you have the right to remain anonymous in Texas.

Fuzzybabyducks said:
Was it you?
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It wasn’t me but if it was I would have made this exact same thread.
 
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