Another insane win!! $ 1B mega million jackpot

[Becky666]

Lucky indeed in gambling, winning that billion is okay but the way the taxers takes almost half of his winnings is not okay, even if his identity not revealed in the process.

Damn taxes.

The 60% taxation looks like a day robbing in my opinion becasue such amount is huge, if during ticketing tax was paid i wonder why should the winners be border to pay tax from his/her winning, though the government always love double taxation.

[Fredomago]

When greed comes in to anyone and they have your authorization, you don't know what they can do just for the sake of money.

I mean, why would they need authorization?

We are talking about a huge amount of money and the winner doesn't need to hide his/her identity because they are anonymous to start with. All they have is the winning ticket and unless he/she posted that on his social media account or shouted in their whole neighborhood that he/she won that huge amount, they will never know that he/she won.

It is probably going to be very hard to hide your new wealth from family and friends for a longer period of time. Such huge sums of money are completely life changing and it's just not possible to hide. The problem is that this kind of money is also changing your family and friends. You might think you have a really good friend but I could turn out that he is only after your money. You will never really know if people are with you for your money or because they genuinely like you.

And for sure whoever wins this huge amount of money, hiding it is the last thing that may think of,
most of the time after winning you'll going to think of something that you can buy.

Or something that you wanted to go, and the people around you will surely noticed that, they will see that you are changing things in terms of financial status.

There's no need to hide anything aside from thinking the securities of your family,
it's not hard for someone to notice your richness.

[bryant.coleman]

Lucky indeed in gambling, winning that billion is okay but the way the taxers takes almost half of his winnings is not okay, even if his identity not revealed in the process.

Damn taxes.

The 60% taxation looks like a day robbing in my opinion becasue such amount is huge, if during ticketing tax was paid i wonder why should the winners be border to pay tax from his/her winning, though the government always love double taxation.

It's more than 60%. The tickets are already taxed while they are being sold. So in the end the cumulative tax burden is much more than 60%. But for most of the participants, they don't bother. The chance of becoming a millionaire is too attractive for them, and they won't mind paying an additional $2 for the lottery tickets.

But if you use your brain wisely, then there are a few things that you can do. Nowadays, it is possible to purchase lottery tickets online, without traveling to the respective countries. So users in the US can purchase UAE or EU lottery tickets (prizes are not taxed in the EU/UAE). When you have a choice, why go for an option which is 3x costlier? But I understand that US citizens are expected to pay income tax on their global income. So in that case you need to consult a CA to find the loopholes.

[Kakmakr]

Fudge that.... I will take the one-time cash payment of about $739 million and cut my link to the Lottery company. We do not know what will happen in the future and if the company would go bankrupt and then you do not get anything else for the 29 years that they signed a contract with you. 

The interest on that $739 million over 29 years will more than make up for the $200+ million dollar that you would have to forfeit for that once off payment. That is a crazy amount of money for one person to win... I think it will be much better if there are 1000 people winning $1 000 000 each. 

[dimonstration]

The interest on that $739 million over 29 years will more than make up for the $200+ million dollar that you would have to forfeit for that once off payment. That is a crazy amount of money for one person to win... I think it will be much better if there are 1000 people winning $1 000 000 each.  

For the sake of mouth dropping price they will indicate and do it even its for only one person but it seems to be much wiser and more chances to get more customers or players when there are plenty of winners that can be chosen since the price is too high, many will attempt to join and try it even they think they are not type of a lucky person. The jackpot is too high, the winner is one real lucky guy if ever chosen.

[Bitcoinislife09]

Fudge that.... I will take the one-time cash payment of about $739 million and cut my link to the Lottery company. We do not know what will happen in the future and if the company would go bankrupt and then you do not get anything else for the 29 years that they signed a contract with you. 

The interest on that $739 million over 29 years will more than make up for the $200+ million dollar that you would have to forfeit for that once off payment. That is a crazy amount of money for one person to win... I think it will be much better if there are 1000 people winning $1 000 000 each. 

I agree with that it seems a good choice to cash out your money annually so that you will not run out of money and you will not spend it all at once just like some other lottery winners, there were actually some lottery winners here in our country where they lost everything after a few years and turns out they spend it all in a lot of things. And we don't know what could happened after a few years of cashing out your money we don't know but he could experience some problem with that. He could also put some in the bank and put some in other investment easily making profit, we know how easy it is to have your own bank like bitcoin/cryptocurrency or even use a real bank where your money is safe and guaranteed.

[ice098]

Fudge that.... I will take the one-time cash payment of about $739 million and cut my link to the Lottery company. We do not know what will happen in the future and if the company would go bankrupt and then you do not get anything else for the 29 years that they signed a contract with you. 

The interest on that $739 million over 29 years will more than make up for the $200+ million dollar that you would have to forfeit for that once off payment. That is a crazy amount of money for one person to win... I think it will be much better if there are 1000 people winning $1 000 000 each. 

Yes I rather cash out all those money in an instant, I have a doubt that someone who wins the jackpot chooses to leave their money in the company, so I think even they will put some tax or some deduction as long as it will not give me less than 50% I will accept that. I will diversify it and make it grow in different investments, I want to make my money double or have some interest in my own way so that there will be no doubts or I will not feel any regrets in the future.

[Yamifoud]

Fudge that.... I will take the one-time cash payment of about $739 million and cut my link to the Lottery company. We do not know what will happen in the future and if the company would go bankrupt and then you do not get anything else for the 29 years that they signed a contract with you. 

The interest on that $739 million over 29 years will more than make up for the $200+ million dollar that you would have to forfeit for that once off payment. That is a crazy amount of money for one person to win... I think it will be much better if there are 1000 people winning $1 000 000 each. 

Yes I rather cash out all those money in an instant, I have a doubt that someone who wins the jackpot chooses to leave their money in the company, so I think even they will put some tax or some deduction as long as it will not give me less than 50% I will accept that. I will diversify it and make it grow in different investments, I want to make my money double or have some interest in my own way so that there will be no doubts or I will not feel any regrets in the future.

If they will permit you to do a one-time withdrawal taking out all your money from them.
And having this money in our hand without any investment plan to put up, it surely be gone shortly unnoticed. If I have this amount of money, the same thing I do, I look into a potential passive investment that even l die, my family is safe enough for their future and they can live without stress where to find the money.
It is something we need not rush on our decision and before doing the celebration, we have to set first where the money it goes.

[Vishnu.Reang]

Everyone is talking about taxation here.. and I have a doubt regarding this.

Suppose an individual has won the $10 million jackpot in the United States. After the taxes, he will receive $4,218,274 in his account (assumed that the winner is residing in a state where there are no state taxes on jackpot).

Now consider another case, where the winner claims that he took the ticket on behalf of a group of 10 individuals and the reward needs to be split. After the taxes, everyone will receive $451,909 in their accounts for a total of $4,519,090, which is around 7% higher compared to the first case.

My question is whether this strategy is legal or not? Can the winner reduce the tax burden by using this method?

[ecnalubma]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

[carlfebz2]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

You wont really be needing some adviser if you do really know on how to handle up finances well but i do understand that we would really be that mind-blown state where you decisioning skills
would really be affected since you didnt really expect that you would really get rich on an instant.

First you would really be thinking off on buying all the things that you had wished for on your entire life which means that will really be on your top priority which i can say that it isnt
bad because we do have our own wishes in life and buying them once you hit lottery isnt really a bad thing to be done.

Just be sure that you do really consider on allocating money for having a business that would really be generating profits for you later on.Dont spend it all unwisely
because regrets do always come in the end.

[tabas]

It's for the public sake but it's not me that you should be asking but the other guy that tells about getting a representative to take your winnings.
Because I believe that you shouldn't allow any representative or decide like that to take your huge amount of winning.

I don't know about your country but our country is different.

You could get your winnings as long as you present the winning ticket. The winner is not actually announced but as far as I know they tell them the region or the town they belong to but not the actual address of the winner. I mean, they can still do that representative thing as long as they have the winning ticket, right?

Yeah right. But that's does what I mean and it's just all about having a representative and taking your money away. About the bad intentions that suddenly could change the mind of the people that you have trusted once his hand is on the money.
You'll never know what's in their mind upon touching huge money.

[Sithara007]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

That's the reason why originally the lumpsum option was not there for the lottery winners. The prizes would be paid out in 30 installments, increasing gradually with time. The lumpsum option was introduced only in 1997 (if I am not wrong) in the United States. Before that if someone had the fortune of winning the jackpot, he had to wait for three decades to get his hands on the entire amount.

[StartupAnalyst]

Everyone is talking about taxation here.. and I have a doubt regarding this.

Suppose an individual has won the $10 million jackpot in the United States. After the taxes, he will receive $4,218,274 in his account (assumed that the winner is residing in a state where there are no state taxes on jackpot).

Now consider another case, where the winner claims that he took the ticket on behalf of a group of 10 individuals and the reward needs to be split. After the taxes, everyone will receive $451,909 in their accounts for a total of $4,519,090, which is around 7% higher compared to the first case.

My question is whether this strategy is legal or not? Can the winner reduce the tax burden by using this method?

I don't know exactly how the laws work in the United States. But in general it seems to me that this option would not work. One person buys the ticket, and he is the winner. And after paying all the taxes, he divides the money among the other participants.
Although it seems to me that if you have proof that you have negotiated in advance the purchase of this lottery, you can try through the court somehow reduce the tax.  But I wonder how much money your lawyers will ask for it

[maydna]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

The winner can ask to cash out in one-time because they don't need to wait for some time to get all of the money, although they need to pay big taxes if they choose that. But still, that is big money to them as they will hard to make those big money from their works. So they don't mind getting the rest of the money after tax because they can get that money, and they can use it for their lives. Aside from hiring a financial advisor, they need to hire security to guard them bring the money to their bank or home. It will be better to prevent the criminals from hijacking them in the middle of their homes or banks.

[iTradeChips]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

That's the reason why originally the lumpsum option was not there for the lottery winners. The prizes would be paid out in 30 installments, increasing gradually with time. The lumpsum option was introduced only in 1997 (if I am not wrong) in the United States. Before that if someone had the fortune of winning the jackpot, he had to wait for three decades to get his hands on the entire amount.

I would certainly prefer the slow 30 installments option. I mean you still get millions of dollars every year. Problem with that for me is the uncertainty of events that will happen to me in the next 30 years. If I won the lottery by age 50, then it means that I will be able to get all the money by age 80. And we don't know by then if I will be alive or dead at that time. Then only option for me then is to hire a young attorney who will manage the money and give the right to claim the rest of the money to a person of my choosing. Unfortunately I am not familiar with the law side of that so I am not sure if that is feasible.

[milewilda]

That’s a very life changing win even if the pot is taxed winner can still take home hundeds million of dollars. I think it will be a better choice to cash out his prize by phase, lottery winners could lose it quickly sometimes if they don’t handle carefully such big amount of cash. Maybe he should hire a financial advisor unless the winner is discipline enough to handle his winnings.

That's the reason why originally the lumpsum option was not there for the lottery winners. The prizes would be paid out in 30 installments, increasing gradually with time. The lumpsum option was introduced only in 1997 (if I am not wrong) in the United States. Before that if someone had the fortune of winning the jackpot, he had to wait for three decades to get his hands on the entire amount.

I would certainly prefer the slow 30 installments option. I mean you still get millions of dollars every year. Problem with that for me is the uncertainty of events that will happen to me in the next 30 years. If I won the lottery by age 50, then it means that I will be able to get all the money by age 80. And we don't know by then if I will be alive or dead at that time. Then only option for me then is to hire a young attorney who will manage the money and give the right to claim the rest of the money to a person of my choosing. Unfortunately I am not familiar with the law side of that so I am not sure if that is feasible.

A  good and considerable term for you to get if you are really that too confident for them to handle out your money but for me i cant really just trust nor being confident and i would rather
get all of those amounts and would keep up for myself neither on my own bank account.For those inheritance issues then its your responsibility to ensure that they would really be having
the full rights in case that you do pass away. This isnt an amount that you cant just easily neglect thats why be wise on how to allocate and make use of those.

[Sithara007]

I would certainly prefer the slow 30 installments option. I mean you still get millions of dollars every year. Problem with that for me is the uncertainty of events that will happen to me in the next 30 years. If I won the lottery by age 50, then it means that I will be able to get all the money by age 80. And we don't know by then if I will be alive or dead at that time. Then only option for me then is to hire a young attorney who will manage the money and give the right to claim the rest of the money to a person of my choosing. Unfortunately I am not familiar with the law side of that so I am not sure if that is feasible.

It will reduce your tax burden. Also if inexperienced people get huge amounts of money all of a sudden, then they are likely to invest them in scams and Ponzi schemes, which will eventually result in them losing all of that. BTW, you don't need to worry about what will happen in case you dies before the last installment. The lottery rules makes it mandatory to provide nominee details in the unlikely scenario of death of the jackpot winner. So even if the winner dies before the last payout, the instalments will still be distributed.

[Janation]

When greed comes in to anyone and they have your authorization, you don't know what they can do just for the sake of money.

I mean, why would they need authorization?

We are talking about a huge amount of money and the winner doesn't need to hide his/her identity because they are anonymous to start with. All they have is the winning ticket and unless he/she posted that on his social media account or shouted in their whole neighborhood that he/she won that huge amount, they will never know that he/she won.

It is probably going to be very hard to hide your new wealth from family and friends for a longer period of time. Such huge sums of money are completely life changing and it's just not possible to hide. The problem is that this kind of money is also changing your family and friends. You might think you have a really good friend but I could turn out that he is only after your money. You will never really know if people are with you for your money or because they genuinely like you.

Usually, your family is the one that would tell that to other people.

In the past, there are a lot of people that would usually gossip about certain individuals who just won the ending or the lotto. Their mother or father confirmed those winners that is why they knew. Here in our country, there will be a lot of people that will get close to those people to get something from them that we call "balato".

[Timelord2067]

Unsurprisingly, the winner of a Billion Dollars wants to remain anonymous. If the lottery were conducted in Australia there would be no haggling over taxes (as the Government takes their share pre draw) and the winner walks away with the bag in one lump sum (none of this scammy "we'll pay you later" nonsense).

A better thread would be "What would you spend a lump sum Billion Dollar Lottery payout on?"