Mega Millions jackpot skyrockets to $850 million. Do this first if you win

[am1]

Some buy an occasional lottery ticket as a form of entertainment. A chance to dream.

Cheaper than a trip to Vegas.

If they won they would have moderately more success in not blowing it all then the people who buy all the time. I do not see it as entertainment and would disrupt my life as I would not be able to live where I do or enjoy what I enjoy. Even more then that it would devalue all my hard work in earning what success I have earned.

 

[amycurl]

I buy maybe 2 lottery tickets a year....at most. I may buy one before the next drawing. And, yes, I see it as a $1 to daydream a little...I would buy a house in about two or three places, and then set up a donor-advised fund at my local community foundation, create an endowment for my current nonprofit, and then invest the rest. It's a kind of fun escapism.

But I wouldn't do any of that until the very last day you have to claim the prize.

 

[x3 skier]

Things to do after winning, First, trust funds for my Daughters and Grandkids, then

A) Make my old Grade and High SchoolsTuition Free
B) Endow several scholarships to my old University Engineering school
C) Move to Steamboat Springs
D) Buy a membership to NetJets
E) Gifts to my siblings and my two BFF’s
F) TBD

Cheers

 

[bbodb1]

Things to do after winning, First, trust funds for my Daughters and Grandkids, then

A) Make my old Grade and High SchoolsTuition Free
B) Endow several scholarships to my old University Engineering school
C) Move to Steamboat Springs
D) Buy a membership to NetJets
E) Gifts to my siblings and my two BFF’s
F) TBD

Cheers

Did I mention my actual name has the initials of TBD?

 

[geekette]

Several years ago during a Christmas Party at our House we were playing the "What would you do if you won?" One of our friends looked me in the eye and said "You would share with your friends, right." She was serious and got upset when I said no. I said we would share with family and give a lot to charity.

I probably would share. None of us are living high on the hog, and I could easily gift 10k to the few friends on my list. They could also expect me to share my adventures. Not sure how realistic that is, as I can travel very short notice and folks with important jobs can't always do that.

 

[geist1223]

Remember if you gift to individuals (kids, Grandkids, others) there will possibly be Federal Gift Tax consequences. If your kids are over 18/21 consider making them partial winners. As I mentioned in another thread each of my kids and Patti's 2 sisters would be declared 10% owners. Patti would take her 25% in a cash payout. I would take my 25% in the 30 years annuity. Also when you take the cash payout there is an approximate 24% reduction. This has been as high as 40% and as low as 20%. Then there is the Federal Tax Rate of avout 37%. Some States Tax the Lottery some do not.

So at $850 million it would work out like this. The 10% takers $85 million, reduction for cash (24%) 62,900,000, federal taxes of about 37% $39,627,000. One 1 lives in a State where he would have to worry about State Taxes.

My 25% = $212,500,000 ÷ 30 = $7,083,333, 10% charity = $6,375,000. 37% Federal Tax = $4,016,250. State Tax of 10% =$3,378,750 for 30 years.

Patti's 25% = $212,500,000, 26% reduction for cash = $157,250,000, 10% for charity = $141,525,000, Federal Tax of 37% = $89,160,750, State Tax of 10% = $75,008,250.

 

[bbodb1]

I think I would handle this very differently. First of all, I would grab all the cash possible, pay off all our bills, ensure ours and our kids futures, sell the house, and travel about the country.
Perhaps in a nice travel trailer.
Go wherever the mood moves us to go.
But it is the what I'd do while on that trip that would be fun.
I would want to travel to some of the off the beaten path places in this country (Kuralt-like)
As I encounter people, and perhaps get to know them, find a way to impact their lives in a meaningful way that help them out of a tough jam.
Fund the drive through orders for awhile.
Purchase the entire day's selections at a bakery, then hand them out.
Walk into an auto dealer's service department and pay the repair bills of a few customers.
And then disappear into the night, moving on to the next town.

 

[x3 skier]

I think I would handle this very differently. First of all, I would grab all the cash possible, pay off all our bills, ensure ours and our kids futures, sell the house, and travel about the country.
Perhaps in a nice travel trailer.
Go wherever the mood moves us to go.
But it is the what I'd do while on that trip that would be fun.
I would want to travel to some of the off the beaten path places in this country (Kuralt-like)
As I encounter people, and perhaps get to know them, find a way to impact their lives in a meaningful way that help them out of a tough jam.
Fund the drive through orders for awhile.
Purchase the entire day's selections at a bakery, then hand them out.
Walk into an auto dealer's service department and pay the repair bills of a few customers.
And then disappear into the night, moving on to the next town.

Sounds like the old Millionaire TV Show (John Beresford Tipton, IIRC)

Cheers

 

[Brett]

Remember if you gift to individuals (kids, Grandkids, others) there will possibly be Federal Gift Tax consequences. If your kids are over 18/21 consider making them partial winners. As I mentioned in another thread each of my kids and Patti's 2 sisters would be declared 10% owners. Patti would take her 25% in a cash payout. I would take my 25% in the 30 years annuity. Also when you take the cash payout there is an approximate 24% reduction. This has been as high as 40% and as low as 20%. Then there is the Federal Tax Rate of avout 37%. Some States Tax the Lottery some do not.

So at $850 million it would work out like this. The 10% takers $85 million, reduction for cash (24%) 62,900,000, federal taxes of about 37% $39,627,000. One 1 lives in a State where he would have to worry about State Taxes.

My 25% = $212,500,000 ÷ 30 = $7,083,333, 10% charity = $6,375,000. 37% Federal Tax = $4,016,250. State Tax of 10% =$3,378,750 for 30 years.

Patti's 25% = $212,500,000, 26% reduction for cash = $157,250,000, 10% for charity = $141,525,000, Federal Tax of 37% = $89,160,750, State Tax of 10% = $75,008,250.

yes, definitely make the family "partial winners" - a good tax strategy for lottery winners

 

[geekette]

I think I would handle this very differently. First of all, I would grab all the cash possible, pay off all our bills, ensure ours and our kids futures, sell the house, and travel about the country.
Perhaps in a nice travel trailer.
Go wherever the mood moves us to go.
But it is the what I'd do while on that trip that would be fun.
I would want to travel to some of the off the beaten path places in this country (Kuralt-like)
As I encounter people, and perhaps get to know them, find a way to impact their lives in a meaningful way that help them out of a tough jam.
Fund the drive through orders for awhile.
Purchase the entire day's selections at a bakery, then hand them out.
Walk into an auto dealer's service department and pay the repair bills of a few customers.
And then disappear into the night, moving on to the next town.

Yes. I like the idea of doing anonymous good deeds.

 

[bbodb1]

Sounds like the old Millionaire TV Show (John Beresford Tipton, IIRC)

Cheers

I am going to have to check that out - thanks @x3 skier!

 

[Gypsy65]

I wouldn’t give a single cent to anyone expecting something other than kids

Same thing we do now
Guy on the corner with a sign saying he is homeless? Nope
But we will seek out the guy in a tent or pushing a cart
Someone we can actually see needs or would appreciate the help

Although we did learn that when we were in NYC we actually ordered extra food for the homeless and it was pretty hard giving it to them
We finally asked and the reply was that some locals poison the food to get rid of them

We live in a messed up world for sure

 

[pedro47]

Sounds like the old Millionaire TV Show (John Beresford Tipton, IIRC)

Cheers

I can remember that television show. It was on the CBS Network back in the day. Tipton, face was never shown to the tv audience.

 

[turkel]

What would you expect from people that spend money on lottery tickets in the first place? Winning does not make them anymore responsible then before.

DH spends money on the lottery every week. He has been doing it for years.

Our house is paid off and we just retired in our early 50’s. I would say we are pretty responsible people.

 

[am1]

DH spends money on the lottery every week. He has been doing it for years.

Our house is paid off and we just retired in our early 50’s. I would say we are pretty responsible people.

That’s great.