Convenience Clerk Wins $258 MILLION Lottery (video)

No lottery taxes in Canada-yet! Mind you. jackpots never get anywhere near 258 million. Just my Canadian 2 cents- which surprisingly is worth just a bit more than the american 2 cents this morning!!!!!!
Good luck to this lucky fellow.

 

From what I understand about the powerball winnings is that if you choose the lumpsum option the total pot is cut by 50% then you pay about 40% in taxes leaving you the balance. So, $258 million /2(50%)= $129 million, then your take home is 60% which is 129mil*.60= $77.4 million. That is a nice payday.

 

Good point but who is to say somebody like Obama or some other politician isn't going to say..."let's tax all lottery winnings at 80%...then your really stuck

 

Someone on a talk show (heck it could have been Oprah) had a bunch of millionaire lottery winners on it and all of them (most of them are broke now) get on tv from the get go and be done with it. If you try and avoid the news people they will all think your trying to hide something and then your whole life gets on the tube. Once you've published it then your yesterday news....

 

If memory serves me correctly you have quoted the income tax rate...the winnings are taxed differently but we need a CPA to tell us - how all of this would pan out.

 

It's not as simple as that. Here's a good article about why the lump sum payment is less than the annuity. It has to do with the time value of money.

Essentially, it shouldn't matter if you take the lump sum or the annual installments. If you're able to earn the return assumed in the present-value calculation used to come up with the lump sum, you'll come out exactly the same place as if you take the annual amounts.

Article.

 

(I've got to learn how to do multiple quotes) This is a great job Richman...just out of curiosity did you deduct taxes from his investments that he made? (I would think the goverment would at least kiss this guy)

 

thats awesome. i pray he can handle it.

 

Excellent Article....!!

 

This is because they all fail to manage their money. Too many of them have no clue how to manage a sudden windfall like this, think that it will last forever, only to find that their newfound extravagent lifestyle has evaporated everything they won and more.

The whole concept of claiming the winnings anonymously is to prevent the press from getting your name, and plastering your face on TV in the first place.

There are two people that you should be contacting before even notifying the lottery office that you have the winning ticket. They are a tax attorney, and a financial advisor. You claim the ticket with both in tow.

UPDATE:

I just made a quick visit to the IRS.gov website. Gambling winnings are taxed as income, and are thusly taxed at the same percentages:

http://www.irs.gov/taxtopics/tc419.html

 

the hightest tax bracket is about 33% everything over $200,000 will be taxed at that rate.

 

it did happen to a flat-broke-ass like you!

 

sheesh man i don't see how people go broke after winning all that....the thing is don't give any of it away...maybe to your family but that's it....move somewhere where noone knows u or knows you won the lottery...don't go buy 10 million dollar house like an idiot....just get a nice 500,000 house......sheesh...i'm gonna work for 30 years and not even make but 2 or 3 million dollars at the most.....prolly less....129 million?...i mean you could go buy a house, 5 cars and still have 128 million left...what do these people do with their money???....you can't go around giving all your neighbors 5 million each...rofl

 

a lot of them get murdered. first rule in lotto club is you dont talk about lotto club. quit your job, but never say why - tell only the few that you need to.. keep it a very close guarded secret.Get yourself a nice car and whatever.. but invest invest invest and live meagerly.

 

I've seen all the advice on here and I have to tell you guys...(since no one knows me) that I'm working on my getting my Second million dollars--gave up on the first million....

 

The problem with taking a lump sum is that now the responsibility to make it grow is on your shoulders. You can say that you will invest the money and then make more but ask someone that took a large sum of money in 2008 and invested it and how they felt when the market crashed. Your investments of that size are not guaranteed. Ask someone that may have had $100,000 in their 401, only to see it reduced to less than $50,000 in a week. If you are young take the annuity, and spend your time on a beach with 4 beautiful babes, pissing away your money and not worrying about it. Then when its all gone you can get another whooper check the next year.

 

If he was smart, he'd get a good financial adviser first off. Secondly, he should set up a trust fund for all of his kids so he can guarantee a secure future for them, and even their retirement. And last but not least, don't go blow it on frivolous things.

 

when you win, youre more than welcome to do that Biggles hahahaa