If I were rich…
There is really no point to this...just random thoughts.
I have had many heated conversations with people about what they would do if they won the big lottery (opposed to the little lottery). You would think winning a butt load of money would be a no brainer. But it really isn’t if you think about it.
Let’s run some numbers on a fairly large lottery say ($120,000,000.00) jackpot. That’s a lot of zeroes.
The distributed jackpot is $120M. That is the jackpot over 25 years. If you take the annuity, you will end up with 120 Million. If you take the cash payout, you get a hair over half. I am taking the payout.
Now, the payout is $63,000,000.00. That appears to be more than enough to buy the new house on the large amount of land, the new cars, tractor, utility company, and college for the kids. But we aren’t done yet. You see, unless you hire a really good lawyer and accountant, you are going to have relatives coming out of the woodwork you never knew you had. The lawyer will prevent the lottery from spreading you name, phone number, social security number and how many Fruit Loops that you have in your cereal bowl all over the media. The accountant will show you how to have all of his money allotted to prevent other problems such as companies your Great Grandfather had credit with 400 years coming to take your assets. So, subtract a mild 50K for them combined. It is worth it to not to have to deal with people you don’t know or don’t like.
Now, with the 50K you already owe the accountant and lawyer, you go to fill out the paperwork to transfer you winnings. When you arrive, there is this nice smiling fellow with an “I am the IRS” t-shirt standing there waiting for you to sign over another portion of those winnings. How much? A mild $30 million. But YOU hired the accountant (you are so smart) and he was able to knock it down to $24 million with the agreement that you invest $10 million into federal bonds. Look at that! He just saved you a cool $6 million. So, minus the other charges and your friends at the IRS, you walk out with $38,950,000.00.
Of course, as soon as you get home, you have to take $10M and invest it in federal bonds for 10 years. It is still your money, but you can’t really use it. OK, $28,950,000. You’re your accountant suggested you put another 15 away so you can earn money off of the interest and save for the kids college funds. YEAH! Now you can do whatever you want! We start with a party a mild $25K (of course…read QueenSuchandSuch January 4 entry). The following week, when we sober up, the purchasing begins! My wife takes $1 million and hits Target. I take another and hit the Hummer dealership for each of us…130Kx5 (what, it’s the H1), the new Bentley at 160K and a Honda Executive ride motorscooter at 10K. Cars and Target take us down to $11.9M. We have to get the east coast home and the Midwest home. The East Cost home will run about $7 Million, the Midwest home will run $2 Million. Now we are sitting around $2.9Million left. You take a few trips and it’s all gone.
Last week, you won $120 Million.
I have had many heated conversations with people about what they would do if they won the big lottery (opposed to the little lottery). You would think winning a butt load of money would be a no brainer. But it really isn’t if you think about it.
Let’s run some numbers on a fairly large lottery say ($120,000,000.00) jackpot. That’s a lot of zeroes.
The distributed jackpot is $120M. That is the jackpot over 25 years. If you take the annuity, you will end up with 120 Million. If you take the cash payout, you get a hair over half. I am taking the payout.
Now, the payout is $63,000,000.00. That appears to be more than enough to buy the new house on the large amount of land, the new cars, tractor, utility company, and college for the kids. But we aren’t done yet. You see, unless you hire a really good lawyer and accountant, you are going to have relatives coming out of the woodwork you never knew you had. The lawyer will prevent the lottery from spreading you name, phone number, social security number and how many Fruit Loops that you have in your cereal bowl all over the media. The accountant will show you how to have all of his money allotted to prevent other problems such as companies your Great Grandfather had credit with 400 years coming to take your assets. So, subtract a mild 50K for them combined. It is worth it to not to have to deal with people you don’t know or don’t like.
Now, with the 50K you already owe the accountant and lawyer, you go to fill out the paperwork to transfer you winnings. When you arrive, there is this nice smiling fellow with an “I am the IRS” t-shirt standing there waiting for you to sign over another portion of those winnings. How much? A mild $30 million. But YOU hired the accountant (you are so smart) and he was able to knock it down to $24 million with the agreement that you invest $10 million into federal bonds. Look at that! He just saved you a cool $6 million. So, minus the other charges and your friends at the IRS, you walk out with $38,950,000.00.
Of course, as soon as you get home, you have to take $10M and invest it in federal bonds for 10 years. It is still your money, but you can’t really use it. OK, $28,950,000. You’re your accountant suggested you put another 15 away so you can earn money off of the interest and save for the kids college funds. YEAH! Now you can do whatever you want! We start with a party a mild $25K (of course…read QueenSuchandSuch January 4 entry). The following week, when we sober up, the purchasing begins! My wife takes $1 million and hits Target. I take another and hit the Hummer dealership for each of us…130Kx5 (what, it’s the H1), the new Bentley at 160K and a Honda Executive ride motorscooter at 10K. Cars and Target take us down to $11.9M. We have to get the east coast home and the Midwest home. The East Cost home will run about $7 Million, the Midwest home will run $2 Million. Now we are sitting around $2.9Million left. You take a few trips and it’s all gone.
Last week, you won $120 Million.
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