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(WTKR)   College student wins $1 million lottery prize, will now only have to borrow money to pay for her final semester   ( wtkr.com) divider line
    More: Spiffy, students, lottery prize, semester, Virginia Lottery, lottery  
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3718 clicks; posted to Main » on 24 May 2013 at 9:25 AM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

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2013-05-24 10:01:39 AM  
1 vote:

pseudoscience: "She had a choice of taking the full $1 million over 25 years or a one-time cash option of $642,000 before taxes. She chose the cash option."

So either $40,000 a year for 25 years or $642,000 initially (pretax ofcourse)? Seems like even with the initial tax hit, if you took the lump sum and invested it, it would be worth well over $1 million after 25 years... right?

I could dump that money as principle into a pool of tax-free municipal bonds and get about $30k a year tax free. Which, when combined with other income, would be better off than $40k a year in an annuity that evaporates in year 25. If I wanted to more actively manage the funds I could do covered call options for taxable 12-15% returns.
2013-05-24 09:39:38 AM  
1 vote:
She's going to community college, so I don't think she's going to be spending it all at the registrars office
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