Here's Mark Cuban's advice for whoever wins the $508 million lottery jackpot

DFWJC · Jul 8, 2016

RingOfHonor88 said:
No its not. The cash value is always around half of the jackpot and you can take another 40% off for taxes. And no I didn't forget anything. You pay taxes on the annuities you receive annually which in the end is still going to be around 40% on this large of a jackpot. There is no penalty for taking the annuities so all you are going to pay is the 40% taxes on your installments.

The cash value is 70% of gross
Jeez, just look it up.

Good grief

tyke1doe · Jul 8, 2016

Idgit said:
Today's dollars spend a lot faster than tomorrow's dollars, too. If you have restraint, lump sum it is. He's probably figuring most people don't have restraint. Not sure he isn't right.

But other than that one that perked up my ears, too, it's pretty good advice overall. The same sort of thing the NFL ought to be telling its players.

It does. Players just don't listen.

And based on my spending habits now, I could manage the lump sum. I wouldn't go out and spend it.

tyke1doe · Jul 8, 2016

Yakuza Rich said:
Unless things have changed, you take the lump sum because if you die...your payments would stop so your family or whomever is in your will, would not get another dime. That's the vast majority take the lump sum instead of the payouts. I know that there are some lottos, like the 'win $1K a week for the rest of your life' does pay out even if a person passes away. I think it pays for at least 20 years though.

He also forgot to mention that you are either going to have to incorporate yourself or put the money into a trust. That way if somebody sues you, your lotto money is protected. Although I would imagine a tax attorney would tell you that.

YR

Wouldn't the remaining money go to your estate?

Yakuza Rich · Jul 8, 2016

tyke1doe said:
Wouldn't the remaining money go to your estate?

Nope.

Once you die...the payments stop. It may have changed, but I don't think it did. I know those "$1k a week for the rest of your life' lottos only go to 20 years, but if you die, it goes to your estate until the payments are completed. But the Poweball, Mega Millions...I'm fairly certain that once you die, it's done. And that's why so many take the lump sum. You're still making ungodly money and it's money you get to keep regardless of what happens to you.

YR

tyke1doe · Jul 8, 2016

Yakuza Rich said:
Nope.

Once you die...the payments stop. It may have changed, but I don't think it did. I know those "$1k a week for the rest of your life' lottos only go to 20 years, but if you die, it goes to your estate until the payments are completed. But the Poweball, Mega Millions...I'm fairly certain that once you die, it's done. And that's why so many take the lump sum. You're still making ungodly money and it's money you get to keep regardless of what happens to you.

YR

Wow! That's a bummer. I guess you have to get it all while you can.

Nightman · Jul 9, 2016

DFWJC said:
Lump sum for 540 mil is 380 mil before tax.
It's discounted by 30% not 50%

so fater tax, 228 today vs 324 spread out over 30 years.

But yeah, you're right about the annuity being the full amount before tax,
A matter of preference I suppose.

The old saying was with interest your money doubled every 7 years....

So lets say you put 100m away and it doubles every 10 years would still have 800m in 30 years and still have 128m to spend and give away

Nightman · Jul 9, 2016

CyberB0b said:
He's flat wrong about the lump sum. Today's dollars are worth a lot more than tomorrow's.

I wouldn't trust the Lottery with my 300m....I also don't want to risk the tax rates going up

You take the lump sum every time and set up some of your own annuities to live on

And if you can blow 228m, imagine the ride

jimmy40 · Jul 9, 2016

bkight13 said:
I wouldn't trust the Lottery with my 300m....I also don't want to risk the tax rates going up

You take the lump sum every time and set up some of your own annuities to live on

And if you can blow 228m, imagine the ride

that would be a hell of a lot of hookers and blow

Doomsday · Jul 10, 2016

CyberB0b said:
He's flat wrong about the lump sum. Today's dollars are worth a lot more than tomorrow's.

It depends on the person. If you are the type like MC Hammer, young and immature you will probably be better off having it spread out of 20 years so you can't dump it all at once.

tyke1doe · Jul 11, 2016

Doomsday said:
It depends on the person. If you are the type like MC Hammer, young and immature you will probably be better off having it spread out of 20 years so you can't dump it all at once.

Can't touch this ... advice.

Longboysfan · Jul 11, 2016

Did anyone hit Mega or Powerball over this weekend? :huh:

DFWJC · Jul 11, 2016

hipfake08 said:
Did anyone hit Mega or Powerball over this weekend?

A single ticket winner for 540 mil from Indiana (380 lump sum before tax) The winner has not come forward yet...which would be expected.
http://money.cnn.com/2016/07/09/news/mega-millions-jackpot-lottery-winner/

No PB winner yet.

Longboysfan · Jul 11, 2016

OK. Shifting my retirement investments to Powerball.

big dog cowboy · Jul 11, 2016

hipfake08 said:
OK. Shifting my retirement investments to Powerball.

jwitten82 · Jul 11, 2016

I call BS on the not being happy part. Most people stress over money, winning that would make most people happy

Silver Surfer · Jul 11, 2016

bkight13 said:
The old saying was with interest your money doubled every 7 years....

So lets say you put 100m away and it doubles every 10 years would still have 800m in 30 years and still have 128m to spend and give away

You'll need to get 7% to double every 10 years..... after all the fees the brokers, mutual funds, etc add on. Not as easy as most people believe.

The first thing I'd do is set up auto pay on a credit card and disappear for 6-12 months, probably traveling the world. Hopefully, (doubtfully) things might cool down a little by then.

Then I'd purchase a home in a couple places I'd like to live and set aside some money to fund an annuity to cover the expenses for those properties.

Finally, I'd set up a foundation with just a few close family members. I'd proportion the voting rights such that I'd never be completely out-voted (tied, but not out-voted). I'd pay everyone, including myself, a good salary and meet to decide how to spend/invest the money.

Creating the foundation would provide me the cover to avoid having to personally reject every old friend, distant relative and every other person trying to separate me from my new-found wealth. Any/all requests for money would not be be up to me; they'd have to be approved by the foundation.

Hardline · Jul 11, 2016

I would convert large amounts to physical gold and silver. The American dollar will be worthless soon.

jimmy40 · Jul 14, 2016

I can't imagine having a piece of paper in my hand worth a couple hundred million dollars. I'd probably have a heart attack and die.

DFWJC · Jul 14, 2016

jwitten82 said:
I call BS on the not being happy part. Most people stress over money, winning that would make most people happy

I think he means longer term.
And all surveys and studies say that on average he is correct.
Short term? yes...probably 100% are thrilled.

Yeagermeister · Jul 14, 2016

I'd take the lum sum, pay off all my bills, invest the rest and smile....oh yeah and quit my job of course

Here's Mark Cuban's advice for whoever wins the $508 million lottery jackpot

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