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When You Win PB or Mega Lottey

SEIOWA CLONE said:
I have always wondered, if you take the lump sum, you have a high rate of taxes, but can you donate that money instead of giving it to the government? Say give 100 million to ISU instead of giving that money as tax?
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I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.
 
twincyties said:
I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.
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Not true for powerball. Your heirs inherit the remainder of the payouts.
 
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SEIOWA CLONE said:
I have always wondered, if you take the lump sum, you have a high rate of taxes, but can you donate that money instead of giving it to the government? Say give 100 million to ISU instead of giving that money as tax?
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Yes, yes you can. Like I mentioned prior, the Fed holds a flat 25% for taxes, and with 700 million you are definitely in the 37% bracket. Add in roughly 8% for state and you you could donate 100MM and that only costs you 55MM in winnings.
 
twincyties said:
I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.
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They are supposed to be paid to the estate.
 
Clonehomer said:
Crap. I’m going to have a very uncomfortable conversation with several car dealerships and a realtor today. Might have jumped the gun a bit.
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Hey at least you didn't tell your boss to F off and shove this job on your way out the door yesterday ... like I did. This is going to be awkward today.
 
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Nelcyn said:
Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.
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Not sure it's still negative when the jackpot is this high but yes in general I agree
 
Nelcyn said:
Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.
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Agreed but it’s nothing compared to another scam a huge % of working class people have fell for since the early 80s.

At least with lottery there’s a chance the cash can go to a working class person.
 
Nelcyn said:
Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.
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Thats why I don't buy tickets unless the jackpots get high enough that it's worth throwing away a few dollars for the chance.
 
Spam said:
I am now going to go invest my 2 dollars into a savings account instead.
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After investing for 40 years at 8% interest, your initial investment of $2 will have grown to $43.45.
You will have earned $41.45 in interest.

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Nelcyn said:
Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.
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I don't think this is true when the jackpot is this high. If you bought every combination AND there was only one winner you would come out ahead. I'm buying a few tickets and I won't feel stupid.
 
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