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(ABC)   Powerball winner says he will not "squander" his $232 million jackpot. Well, after taxes and taking the lump sum, he means his $88.5 million jackpot, so he's already squandered $143.5 million   (abcnews.go.com) divider line 154
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6040 clicks; posted to Main » on 06 Jun 2009 at 1:05 PM (5 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2009-06-06 03:39:36 PM  
Always take the lump sum. If you die next week your family gets jack. Hell, you can live the rest of your life on one million if you aren't a greedy retard.
 
2009-06-06 03:43:18 PM  
He you lump sum suckers:

FROM THE POWERBALL FAQ

Rising interest rates increase the annuity jackpot (reduces the cash percentage), but a change in the payment method of the Powerball annuity prize is the big reason for the increased interest earnings to build the annuity prize. The annuity is now paid out as a graduated annuity. Each payment is 4% higher than the previous year's payment to help keep up with inflation.


You'll have to re-do the math and your investment strategies.
 
2009-06-06 03:44:42 PM  
wtf? I submitted this hours ago with a much better headline; "Lucky man's neighbor is an assman"
 
2009-06-06 03:45:39 PM  
Actually it was a yahoo version of the story that I submitted. Dont know if this one mentions the neighbor named "assman"
 
2009-06-06 03:46:20 PM  
BMFPitt: YouPeopleAreCrazy: BMFPitt: Perhaps you would be more persuasive if you didn't suggest doing something dumber than taking the annuity.

The basic point was - Even with zero interest earnings, that is an assload of money to get all at once.

Your basic point is flawed. $88M gaining 5% annually > $235M over 30 years > $88M over 90 years.


Not flawed, you are working under the assumption that the annuant is actually receiving that interest.

The lotto puts the 88mil in an annuity and pays the person what amounts to the INTEREST and SOME principal over 30 yrs...

at the end of 30 yrs your TOTAL amount you will have received would be 235 million.

Now if i took the same 88 million CASH and invested it myself, at the end of 30 years i would have received GREATER than $235 million.
 
2009-06-06 03:48:07 PM  
Dallymo: Iwouldhitit: My favorite part of that story is that he has a neighbor named "Assman".

Mine isn't in the link, but is in another version (new window) of the AP story:

According to lottery officials, he recently told his horse, Eleanor, "It'd be nice if we go for a longer ride than usual on a bigger ranch of our own."

He sounds like a nice, earnest kid. I just want to pinch his precious cheek!

And pick his pocket while he's distracted.




Or the whole story is made up to give the officials something to write about while only the locals really know who they are. But I'm a cynic.
 
2009-06-06 03:52:01 PM  
JohnBigBootay: MisterSpoot: 5. Thank your lawyer, pay him for the work, and enjoy your fortune without anyone - including the media - ever knowing you won.

Nice idea Einstein. But you forgot to read the back of the ticket. Playing the game grants the issuing entity the authority to use your name and likeness for promotional purposes.


Nice detective work, Sherlock, but if you go to "winners" list on the powerball site itself you'll see a couple of "Anonymous" winners.
/thanks for playing
 
2009-06-06 03:56:47 PM  
When I win the powerball... step 1 cash out lump sum ,step 2 invest wisely for when the zombie revolution comes or our financial system collapses whichever comes first, buy 50-100 acres build fat ass all green pad,release 40 guard dogs on premises weapons lots of weapons pay my cousin to be my security,10 million in cash in closet safe 30 in the bank, throw some away in the stock market lots of gold, and the most important thing 24/7 hookers and blow..... yeeeeaaahhhh
/cant wait
//why yes I do dream about it often
 
2009-06-06 04:03:07 PM  
commander-insleep: When I win the powerball... step 1 cash out lump sum ,step 2 invest wisely for when the zombie revolution comes or our financial system collapses whichever comes first, buy 50-100 acres build fat ass all green pad,release 40 guard dogs on premises weapons lots of weapons pay my cousin to be my security,10 million in cash in closet safe 30 in the bank, throw some away in the stock market lots of gold, and the most important thing 24/7 hookers and blow..... yeeeeaaahhhh
/cant wait
//why yes I do dream about it often


Basically same, but mine had yacht, with me captain, piss me off, walk the gangplanck, international waters my word law.
Then remembered Somali pirates and returned to YOUR plan,lol
 
2009-06-06 04:09:01 PM  
nonicoclolasos.files.wordpress.com
 
2009-06-06 04:24:50 PM  
farfigneugan: JohnBigBootay: MisterSpoot: 5. Thank your lawyer, pay him for the work, and enjoy your fortune without anyone - including the media - ever knowing you won.

Nice idea Einstein. But you forgot to read the back of the ticket. Playing the game grants the issuing entity the authority to use your name and likeness for promotional purposes.

Nice detective work, Sherlock, but if you go to "winners" list on the powerball site itself you'll see a couple of "Anonymous" winners.
/thanks for playing


Laws vary by state.

Stop bickering.
 
2009-06-06 04:35:22 PM  
brigid_fitch:
When I was in college, I worked for a woman who won the NJ twice within 4 months. Before taxes, her winnings were 5.4M. Within 2 years she declared bankruptcy, lost her house, and was living in a trailer park & working at the local Shop-Rite. I'm on my Blackberry, so can't link an article, but if you Google "Evelyn Adams", you can read her story.


One article (new window) profiled her as well as several other lottery 'losers'.

Many of them, including her, had in common the trait that they were compulsive gamblers or people who would be if they had access to more money.

The very fact that she continued to play the lottery after she had won the first time should be a big tip off. :)

I'm willing to bet that 99% of the losing winners have compulsive behavioral problems. A sad combination. Adding fuel to the fire is the problem of trying to stay anonymous when the lottery won't let you. That's the worst thing that can happen to someone with a personality disorder like that, everyone else encouraging it. The very fact that they were playing the lottery to get the money in the first place makes the chances of the winner being of the betting type very high.

Being young with money is also dangerous, but this kid sounds grounded. The problem will be all of his hick friends and relatives.
 
2009-06-06 04:49:27 PM  
FTA: Wanless, who is single

I wonder how many women will suddenly be interested in him now?
 
2009-06-06 04:55:33 PM  
parkerlewis: FTA: Wanless, who is single

I wonder how many women will suddenly be interested in him now?


ALL of them
//even the gay ones
 
2009-06-06 04:56:25 PM  
I'm straight guy and i'm kinda interested.

//I KEED,lol
 
2009-06-06 05:03:02 PM  
mistersnark: [googling a bit]

Damn, that's pathetic. The scary thing is, it's not like your folks even won THAT much after the split, taxes, etc. The amount they won (~$588K), while not exactly chicken feed, isn't "buy a Ferrari for each of my friends" territory either. That fact wouldn't stop leeching idiots from asking for money, I'm sure, but still...


It is "pay necessary medical expenses for a good friend" territory. It is "save my car from being repo'd" territory. Certainly "help me eat because I lost my job and have nothing to fall back on" territory. I doubt the vultures come with their Ferrari dreams, they come with their sob stories.
 
2009-06-06 05:14:26 PM  
The government gets a majority of it. What a joke! Better if it were tax free. This is nothing more than a tax that preys on greed; mostly the poor and elderly.
 
2009-06-06 05:14:38 PM  
Undertoad: He you lump sum suckers:

FROM THE POWERBALL FAQ

Rising interest rates increase the annuity jackpot (reduces the cash percentage), but a change in the payment method of the Powerball annuity prize is the big reason for the increased interest earnings to build the annuity prize. The annuity is now paid out as a graduated annuity. Each payment is 4% higher than the previous year's payment to help keep up with inflation.


You'll have to re-do the math and your investment strategies.


Wow, are you kidding? 4% of the annual payment amount is a fraction of what 4% of the lump sum would be, and thats assuming your lump sum is only returning a measly 4%.
 
2009-06-06 05:19:04 PM  
Instead of doing all this "hire a lawyer" crap, how about spend 2 minutes and research your local lottery rules, then decide if you really want to hire a lawyer. Several states do not require you to sign the media release. As for hiring a tax lawyer, its not gonna matter much. In my state (KS(no media release required btw)) you're gonna loose 35% to fed's and 15% to state right at the top. A tax lawyer is just gonna say "This is the best we can do. Wheres my money?" Don't sign the media release, sign the direct deposit slip, and so sit on your couch and dream for a while. And that takes roughly 2 weeks from the day of the drawing to gather the money and get it to your bank account. Although they said they will back you for a loan from the bank if you just can't go another day living like common folk.

/bored one night so i looked it up
 
2009-06-06 05:28:44 PM  
parkerlewis: FTA: Wanless, who is single

I wonder how many women will suddenly be interested in him now?



That one fat chick who was interested just saw her dream melt away .
 
2009-06-06 05:35:36 PM  
Dave Assman
 
2009-06-06 05:41:19 PM  
foxo: Only in totally corrupt America this kind of tax con game is possible.
This "no winner this week"is also as corrupt as it comes.
The winnings should be divided among that weeks players,fairly,not 500k for 6 correct and 39.95 for 5 correct.
As one of my British friends once remarked"trickery and deceit from one end of the nation to the other",that is the name of the game in America.


American government = Mafia. British government = home owners association.
 
2009-06-06 05:45:15 PM  
$88.5 million or a man with a life expectancy of 50 years means he could spend $4850/day without drawing any interest on the whole sum (damned unlikely!) before dying broke.

At 5% interest, he could spend $12,100 per day and never touch the principal.

Equally unlikely.

Most people who play the lottery are programmed to fail, so in a few years they are broke again.
 
2009-06-06 05:48:43 PM  
phlat: Instead of doing all this "hire a lawyer" crap, how about spend 2 minutes and research your local lottery rules, then decide if you really want to hire a lawyer. Several states do not require you to sign the media release. As for hiring a tax lawyer, its not gonna matter much. In my state (KS(no media release required btw)) you're gonna loose 35% to fed's and 15% to state right at the top. A tax lawyer is just gonna say "This is the best we can do. Wheres my money?" Don't sign the media release, sign the direct deposit slip, and so sit on your couch and dream for a while. And that takes roughly 2 weeks from the day of the drawing to gather the money and get it to your bank account. Although they said they will back you for a loan from the bank if you just can't go another day living like common folk.

/bored one night so i looked it up


Lawyers are a load of bunk, scammers all. I get all my legal advice from Fark for free!
 
2009-06-06 05:54:12 PM  
Buy some land, donate some of it to states and municipalities for parks and nature preserves, start a foundation to provide incentives for teachers in inner city schools and modernized classrooms and instructional materials, and start community radio stations. Build some disc golf courses and hang out.

And a small fund for guitars and beer. My needs are simple.
 
2009-06-06 06:49:19 PM  
foxo: Only in totally corrupt America this kind of tax con game is possible.

Yes, it's our national shame, especially when we compare ourselves to European nations.

This "no winner this week"is also as corrupt as it comes.

Rollover is a myth invented by The Man to Keep Us Down.

The winnings should be divided among that weeks players,fairly,not 500k for 6 correct and 39.95 for 5 correct.

Fairly? Let's see. Lotteries I'm familiar with paid out about 50% of their take as winnings, and distributed the rest among ticket sellers, advertisers, bureaucrats, and, oh, yeah, schools, mustn't forget the schools' part of the "Education Lottery". So, I'm guessing you think we should just pay 50 cents to each person who bought a ticket, right? I mean, that's about as "fair" as you can get, right?
 
2009-06-06 06:54:06 PM  
deltabourne: mistersnark: I don't get people who biatch about taxes on lottery prizes. Okay, it eats into your take, but...so farking what? It's not like you earned it...

The more important problem is that the government didn't earn it either, and since they're taking it they better have a damn good reason to. I don't understand why it's OK to have the government take whatever it wants whenever it wants.


Oh, FFS. Please go on and tell us how you never drive on public roads, you never rely on police protection, and, oh, yeah, you single-handedly defended your own property from the Krauts and Japs while the rest of us suckers were dealing with taxes and rationing and the draft.
 
2009-06-06 07:11:38 PM  
MusicMakeMyHeadPound: I never really understood a tax on lottery winnings.

If the lotto agency was a private industry, fine, but taxing a government handout is just false advertisement.


Blame Milton Friedman.
 
2009-06-06 07:14:04 PM  
jfarkinB: deltabourne: mistersnark: I don't get people who biatch about taxes on lottery prizes. Okay, it eats into your take, but...so farking what? It's not like you earned it...

The more important problem is that the government didn't earn it either, and since they're taking it they better have a damn good reason to. I don't understand why it's OK to have the government take whatever it wants whenever it wants.

Oh, FFS. Please go on and tell us how you never drive on public roads, you never rely on police protection, and, oh, yeah, you single-handedly defended your own property from the Krauts and Japs while the rest of us suckers were dealing with taxes and rationing and the draft.


I once dealt with a particularly sauer kraut.
 
2009-06-06 07:45:28 PM  
I'll bet his schlong is already sore from all the "extra" attention.
 
2009-06-06 08:02:48 PM  
This 212 million payout is absurd,I'd rather see 212 people get a million each than this brain fart invented, by some obviously retarded apes.
 
2009-06-06 08:05:40 PM  
He's lucky SD has no state income tax. In oregon he would have to pay another 9% off the top to the state. Not to mention capital gains on anything he makes off that money in the future.
 
2009-06-06 08:32:13 PM  
Subby keeps using that word "squander." I do not think it means what he thinks it means.
 
2009-06-06 08:35:57 PM  
jfarkinB: Oh, FFS. Please go on and tell us how you never drive on public roads, you never rely on police protection, and, oh, yeah, you single-handedly defended your own property from the Krauts and Japs while the rest of us suckers were dealing with taxes and rationing and the draft.

I didn't say all taxes were bad. Strong reading skills.
 
2009-06-06 08:44:14 PM  
deltabourne: I didn't say all taxes were bad. Strong reading skills.

I didn't say you did. Instead, you said:

I don't understand why it's OK to have the government take whatever it wants whenever it wants.

...with your strong writing skills.

Perhaps you'd like to elaborate on which taxes you think the government does "earn", what constitutes a "damn good reason" for taking what it doesn't "earn", and where the line falls between that and "hav[ing] the government take whatever it wants whenever it wants".
 
2009-06-06 08:49:52 PM  
jfarkinB: ...with your strong writing skills.

Perhaps you'd like to elaborate on which taxes you think the government does "earn", what constitutes a "damn good reason" for taking what it doesn't "earn", and where the line falls between that and "hav[ing] the government take whatever it wants whenever it wants".


The government should only have the power and will to take taxes to pay for the services they need to provide. They don't (shouldn't) get to reap in as much as they want and then decide how to spend it. And they especially don't get to take bigger percentages of the pie depending on whether they feel you've "earned" the money. I don't think lottery winnings should be taxed at all. And I don't think this is a ridiculous proposition since Europeans aren't exactly shy about taxation and many countries don't tax the lottery winnings there.
 
2009-06-06 09:03:34 PM  
deltabourne: jfarkinB: ...with your strong writing skills.

Perhaps you'd like to elaborate on which taxes you think the government does "earn", what constitutes a "damn good reason" for taking what it doesn't "earn", and where the line falls between that and "hav[ing] the government take whatever it wants whenever it wants".

The government should only have the power and will to take taxes to pay for the services they need to provide. They don't (shouldn't) get to reap in as much as they want and then decide how to spend it. And they especially don't get to take bigger percentages of the pie depending on whether they feel you've "earned" the money. I don't think lottery winnings should be taxed at all. And I don't think this is a ridiculous proposition since Europeans aren't exactly shy about taxation and many countries don't tax the lottery winnings there.


Do something about it, man. Like Ruby Ridge or something, yknow, let em know how you feel.
 
2009-06-06 09:08:00 PM  
Donnchadha: So he's only going to be 88.4 million more lottery tickets?

Lottery tickets is PEOPLE!
 
2009-06-06 09:09:00 PM  
I won a hundred-trillion dollars in the Zimbabwe lottery. I chose the lump sum.

static.guim.co.uk

After taxes were deducted, I wound up owing them $250.00 (US) and a cow.

/I blame the white farmers
 
2009-06-06 09:09:14 PM  
Rustem:

Do something about it, man. Like Ruby Ridge or something, yknow, let em know how you feel.


Just do it on a slow news day...when we need the headline.
 
2009-06-06 09:14:33 PM  
Wanless, who is single and lives with his mother and father on the family's 320-acre ranch near Mission, said he's going to buy himself a bigger spread, repay the kindness other townspeople have shown his family and spend his newfound fortune wisely.

This is the kind of guy I'm happy to see win.

Aside from myself, of course.

Crap...now I have to redesign the castle.
 
2009-06-06 09:44:26 PM  
scott88008: foxo: Only in totally corrupt America this kind of tax con game is possible.
This "no winner this week"is also as corrupt as it comes.
The winnings should be divided among that weeks players,fairly,not 500k for 6 correct and 39.95 for 5 correct.
As one of my British friends once remarked"trickery and deceit from one end of the nation to the other",that is the name of the game in America.

American government = Mafia. British government = home owners association.


I'd rather deal with the Mafia. They have more class, and more honor, than a HOA.
 
zz9
2009-06-06 10:57:19 PM  
patent holder: zz9: It may be a tax on the stupid but at least in the UK the lottery is (a) tax free, (b) you get the entire jackpot in one lump sum and (c) you can stay anonymous.

We've had euro lottery jackpots of over £100m. To end up with that in your pocket you'd have to win an $800m jackpot in the US.

Not very good at simple math are you? It would actually be a Powerball of just over $250m with a 40% hold.


$250m "Jackpot"
Take lump sum? You get half that, $125m
Pay taxes on $125m, you keep $75m
$75m is £47m

£47m is a lot less than the biggest single euro jackpot winner of £120m.
No tax.
No "We keep half if you want a lump sum".

To be fair I worked this out a year ago when the £ was worth 2 USD, so it is less now.

But even today £120m = $192m
To keep $192m after taxes you'd have to got $320m
To get a check for $320m lump sum you'd have to win a jackpot of $640m

So to win the biggest euro jackpot ever won by a single winner you'd have to win a "jackpot" of $640m.
 
2009-06-06 10:57:32 PM  
if you get at least 2% a year on your money (or whatever inflation is running) then you're better off taking the lump sum. if he blew 8.5M and had 80M left, at just 2% a year you'd be making 1.6M a year just in interest. you could donate 1/3 of that and still have 1m a year. that's a pretty good deal.
 
2009-06-06 11:00:26 PM  
So he could have take payments 20 some years and eventually gotten $232 mil, and that would have been the smart thing to do? While he could have taken the cash sum, split it in half, invested that and waited the same amount of time and have way more than that.

Not to brilliant, subby.
 
zz9
2009-06-06 11:01:29 PM  
scott88008: foxo: Only in totally corrupt America this kind of tax con game is possible.
This "no winner this week"is also as corrupt as it comes.
The winnings should be divided among that weeks players,fairly,not 500k for 6 correct and 39.95 for 5 correct.
As one of my British friends once remarked"trickery and deceit from one end of the nation to the other",that is the name of the game in America.

American government = Mafia. British government = home owners association.


It's funny because we don't have HOA's in the UK.
No one tells me what colour I can paint my house or that I can't park my car in my drive overnight. And yet somehow the area hasn't become a trash ridden war zone.

(Well, HOA's are very rare here anyway)
 
2009-06-07 12:00:15 AM  
Obnox: Buy some land, donate some of it to states and municipalities for parks and nature preserves, start a foundation to provide incentives for teachers in inner city schools and modernized classrooms and instructional materials, and start community radio stations. Build some disc golf courses and hang out.

And a small fund for guitars and beer. My needs are simple.


nice to see another disc golfer on here!

\would dump a bunch of money into the local parks here in St. L to increase the city's disc golf cred.
 
2009-06-07 12:17:01 AM  
Obnox: Buy some land, donate some of it to states and municipalities for parks and nature preserves.

Personally, seeing some of the things our state has let gas and oil companies do on state land, I'd feel more confident putting a conservation easement on the land and donating it to the Nature Conservancy, but I like the idea.
 
2009-06-07 02:40:24 AM  
Lives on a 320 acre ranch?

Am I missing something, or is that land not worth several million in of itself?
 
2009-06-07 10:21:59 AM  
octopied 2009-06-07 02:40:24 AM
Lives on a 320 acre ranch?

It's his parents ranch, and it is also in S.D. the whole state isn't worth millions.........nuff said.
 
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