check my math

[mattttt25]

ok, so i wasted a few minutes today day dreaming about winning the $92M mega millions jackpot tonight. assuming i'm the only winner, i know i get roughly $36.8M for the lump sum payout. i guessed on taxes and figured i'd have $23M clean, give or take.<br /><br />if i safely, but smartly invested $20M of it....let's assume i earn 5% yearly. that nets me $1M, right? pay taxes on that and i still can live off $600K or so a year?<br /><br />just figure i need to be ready.

 

[kenimpzoom]

Re: check my math

I'll check your math for a percentage of the winnings. <br /><br />Ken

 

[Luna Sea]

Re: check my math

That was a waste of time. I have the winning ticket!

 

[spratt]

Re: check my math

I happen to be a world class Financial Advisor, specializing in Lottery Winning investments...Matt, let me know what you want to invest in and then you can provide me the 20Mil check, then check back in abotu 20 years to see how the investments have done...we, I mean you could possioble live on more if you choose to take back a part of your investment earnings annually or monthly...

 

[gaugeguy]

Re: check my math

Mega-Millions calculations simplified...<br /><br />Money in your wallet subtract $1 equals what you have after purchasing another losing ticket.

 

[jtexas]

Re: check my math

I was with ya right up until the part where you said "i still can live off $600K or so a year?"<br /><br />matttt, that's only $50,000 per month. Theoretically I guess it's possible to make it on that, but you're going to need a tight budget.

 

[mattttt25]

Re: check my math

gaugeguy, got to be in it to win it.

 

[PatPatterson]

Re: check my math

I bought a ticket this morning, and did the same calculations.<br /><br />With $23M net, I can quit work, buy that Lake House I have been dreaming about, along with a new bass boat, and a few other things I have my eye on.<br /><br />I figure after all that, I'll still have enough to let my wife cut back and just work Part Time.<br /><br />

 

[KaGee]

Re: check my math

Matt... didn't you read the "Money Won't Change Me" thread before Christmas??

 

[mattttt25]

Re: check my math

i'll tell you what, i really think i could handle it. i've spent way too much time thinking about what i would do if i hit it big (good hobby). i would still work, because at 29, i'd go nuts if i didn't. as for initial purchases, i'd buy a modest waterfront home and new boat. sell my home and boat. that's it. i would give my immediate family some money. i would also give my high school and college decent donations (who got me here). the rest would go to a large investment company that specializes in large accounts. set it all up to live off the interest (see math above). with the $600k a year, i could still spend it like toilet paper.

 

[jtexas]

Re: check my math

There are large brokerage houses who require minimum accounts of $10 million and regularly return 18% or more - with half at 18% and and half earning a safe 5%, you could easily clear $1.4 million a year after taxes. Spend a little less, and it just keeps getting bigger!

 

[DJ]

Re: check my math

There are large brokerage houses who require minimum accounts of $10 million and regularly return 18% or more - with half at 18% and and half earning a safe 5%, you could easily clear $1.4 million a year after taxes. Spend a little less, and it just keeps getting bigger!<br />

You cannot change the facts of life. The more you are willing to risk, the greater the payout.<br /><br />That's why the rich get richer, at an exponential rate.

 

[theriver]

Re: check my math

Lets face it, if you bought a ticket in the first place, obviously you are bad at math...<br /><br />

 

[cbnoodles]

Re: check my math

Yeah, that's true but it sure is nice to think about the possibilities, aint it?

 

[wilkin250r]

Re: check my math

With a gross income in excess of a million dollars annually, it would be well worth it to secure the services of a tax firm, and you won't pay anywhere near 40%.<br /><br />Not only that, but I believe the payout is 20 years? $92 million over 20 years comes out to $4.6 million per year. At your estimated 40% tax, this comes to $2.67 million after taxes. In your first scenario, you still have $20 million after 20 years, because you just live on the intrest. By putting away $1 million from your annual payout of 2.67 (after taxes), you can still have that same $20 million after 20 years, but your net spendable is now $1.67 million instead of $600k.<br /><br />And after 20 years, you actually have MORE than 20 million. My calculations show at a modest 5%, you actually have over 30 million.

 

[dolluper]

Re: check my math

See how far your buck goes up here we have the cheapskate lotteries maybe win 5--9---or 16 million for are 83 cent dollar ,but the advantage is your winnings are yax free you get what you win untill you spend it then they tax the crap outta you----man jb post got to me it should read winnings TAX FREE----Frig it was ob that screwed me up not JB sorry JB time for a drink ehhhheck

 

[jtexas]

Re: check my math

Originally posted by wilkin250r:<br /> With a gross income in excess of a million dollars annually, it would be well worth it to secure the services of a tax firm, and you won't pay anywhere near 40%.<br />

I agree 100% but keep in mind that me & you (Texas & Nevada) don't have to worry about state income taxes, but MD will take their cut of mattttt's earnings, if not off the original bundle.<br /><br />That's where the Cayman Islands comes in: banking secrecy, white sandy beaches, clear blue water....

 

[wilkin250r]

Re: check my math

Originally posted by jtexas:<br />I agree 100% but keep in mind that me & you (Texas & Nevada) don't have to worry about state income taxes,

So if you DO decide on the lump sum, you take the first annual payment, move your residence to Nevada or Texas, THEN sell the annuities for a lump sum.

 

[ob]

Re: check my math

Now ,if we could just get Sloopy to work on that time machine,we would know what the winning numbers are.<br /><br />I must admit ,while the odds are stacked waaaay against a person winning ,a win promises the best return of investment that can be got.Less of a contribution than a restaraunt tip.<br /><br />Most I ever won was $10 on a scratch off.

 

[rudeafrican]

Re: check my math

Hey Mattt, I'm with you on the continueing work issue. Imagine what change in attitude you'll have working for the same boss, knowing you have $20 million in the bank. I'll take no crap from anybody at work!