What would you choose if you were the one

[Asuspawer09]

Both of it sounds good to me. Whatever you choose, it would probably still going to be a good decision since you're still getting a huge amount of money now it's just a matter of how you are going to handle the money. But I guess both choices have advantages and disadvantages you it up to the winner what they are going to do.

Personally, I would probably just take off with it completely, get the $ 450 million all at once, and just take care of all of the taxes because I know I could probably take care of the money and make a good investment on it, or start a business of it, just to make more money out of it, but still depending on how much you could handle.

But if I think about it getting the installment money is also alright especially if you know that you cannot handle a huge amount of money, that gives you a guarantee money income where you could make sure that you have money throughout the years, If im going to do it, I would probably stay low key for a while and that makes me slowly handle my huge income but still I wouldn't going to quit my day job, but at least have a good financial stability as I completely my finaces and become financially free. But the thing that I don't like about it is that there are some doubts if your going to receive the payment monthly, because I heard a lot of these stories in my country where they win and never really received the payment anymore or not even received a single money.

[yhiaali3]

This is an unimaginable amount that I can't even think about...
$450 million in one lump sum would definitely make me faint or go crazy...😍
I can't bear to receive this amount in one lump sum, so I prefer to take it in installments over 30 years.

On the other hand, I think it is the preferred option for the company itself because it will take the $450 million and invest it in safe government bonds, and thus the $450 million will grow through investment to be enough to pay the full billion over 30 years.

[Ummeettaa]

The both option seems good to me but when you all think of it, it will be better to collect the entire some of $450 million at once and pay the tax.

I might also not understand how the tax works in that particular country but am sure that the tax to be paid will not be up to 40% of the total win, which is not bad and also a win win for the jackpot winner.

If without investing any amount or investing a small amount can make someone win a huge some amount of money, I don't think it's a bad idea to collect the entire sum won rather than instrumental payment.

If am to choose among the two options, I will definitely choose to collect the entire some and build a life and Castle with it for my future generations to come.

Someone that is business wise and have the opportunity of receiving such funds, will make and create a generational wealth for his entire family and generations.

And also if the sum is to be collected in instalments, some generation that will inherit such will misuse and make nothing out of the pay.

The tenure and system of every government can also change and decide not to honour the said agreement or continuation of the said money again as agreed.

So entirely I will be going with the option of collecting the entire some because even after the taxes being removed, the amount to be received will surely be a huge sum.

[ArabBTC]

Even if this option come a hundred times i will prefer collecting the instant huge sum of $450 million and go my way because the world and gambling are two uncertainties, no one can predict the future, one can wake up one morning to realize that one government policy or something has breached the yearly payment plan, what if the company goes bankrupt for example in the future and can’t pay the money again what will you do? in life it is always better you collect the one you are seeing first before talking about the future because no one knows what the future holds.

[Free Market Capitalist]

So what would you choose if you were the one?

It’s such an enormous amount that it doesn’t really matter, so if the taxes were the same, I’d collect it all at once. We’re not talking about collecting 10 million, or 5 now and 5 in installments. With just the 450 million—even if I didn’t collect a single cent more—and with even minimal good management, that’s generational wealth.

[Cointxz]

If you receive payment in instalments for 29 years, you would receive about $34 million years. So if you take out a total tax payment of about 40%, you would receive about 20-21 million every year after tax.
So what would you choose if you were the one?
For me, I would choose to receive the payment by instalment. $20 million a year puts me in the top 1% of earners in the world, and I can do whatever investment I want to with that. With a payment like that, I may not even need to touch a penny from the other payments.

This is a good discussion when it comes to taxes on gambling profit.

Let’s break down.

US taxation has a progressive tax bracket which means the higher your income means the higher your taxes so if you do lump sum then you will pay the highest tax possible. So in paper discussion, installment is the best choice.

However, the age of the winner and the preference play an important factor on the decision making since he might be old and can’t enjoy all the money later on.

If this is me considering I’m still young, It’s an easy installment choice.

[m2017]

A man in Illinois won a $1.04 billion jackpot a few days ago, now he has to choose how he would receive his money.

Didn't the Powerball organizer go bankrupt after a jackpot like that? That’s a crazy amount.

He could accept a total sum of $450 million at once or receive 30 payments in instalments for the next 29 years.
The lump sum of $450 million sounds nice, but when you consider the taxes, you might be walking home with just over half of that money at the end of the day. I'm not a tax expert, and I don't know the tax regulations of the US or the state, but from my rough reading, you'll have to pay about 40%-42% total in taxes for that amount.

Is there a risk that tax laws might change over these 29 years, forcing the winner to pay more than the current 40–42% rate? It is also unclear whether the tax rate would be affected if the prize were paid out in 30 payments; perhaps the tax burden would be lower under such a payment structure?

All in all, a 40–42% tax rate seems astronomically high for such a massive win, bordering on legalized robbery of gamblers (people who risk their own money on bets yet receive no protection against losses from the very regulator that collects a share of their winnings in taxes).

If you receive payment in instalments for 29 years, you would receive about $34 million years. So if you take out a total tax payment of about 40%, you would receive about 20-21 million every year after tax.

It turns out the percentage is lower in this case, after all. But I repeat: over a period of nearly 30 years, there are no guarantees that the tax rate won't rise, or that this lottery (and its prize pool) won't cease to exist.

So what would you choose if you were the one?

I would take the full amount right now and invest it in bitcoin. Deferred payments entail too many risks, and besides, that money can't be invested (and are subject to inflation over 30 years).

For me, I would choose to receive the payment by instalment. $20 million a year puts me in the top 1% of earners in the world, and I can do whatever investment I want to with that. With a payment like that, I may not even need to touch a penny from the other payments.

In 30 years, bitcoin's price will go to the moon. It’s better to invest now, when there’s potential for greater returns.

I hope this lucky jackpot winner figures out how to invest the prize money wisely (or gets some help doing so).

[ZeroVinsonN]

There is no better option in a situation like this one, it's more about which one the person prefers. 29 years is a long time, what's the guarantee that the casino will still be active by then, but then the lump sum can be considered by some as being cheated out of their winnings but as long as it's a choice for the winner then any option is good, they can walk away with the lump sum or they can play the long game and keep receiving payment for 29 years.
I will be picking the instalment over the lump sum though as long as there is a guarantee that if something happens to me the money will still go to my family. I wouldn't want to risk giving the casino a chance to attempt an assassination on me in order to stop paying me.

[Charcol]

If you receive payment in instalments for 29 years, you would receive about $34 million years.

This is an average of 30 installments over 29 years, but it is not a fixed amount that can be obtained every year. Simply put, the annual installment of Powerball probably does not come out in the same amount every year. Suppose you win the jackpot, then they will give you an initial amount of money. From the following year onwards, they will give you 5% more each time in 29 installments. So if you calculate $1.04 billion, you can probably estimate the first installment to be $15.65 million. But then you will get another 5% more installment in the next year. Then you will get another 5% more in the next year. That's what I read. But if you put it this way, it would be correct, the average of the total 30 installments is $34.7.

[Julien_Olynpic]

Both of these options are good. And each has its pros and cons. Let's start with the lump sum payment. Its main advantage is a huge pile of cash, lol. The main disadvantage is a logical extension of the advantage: not everyone is psychologically prepared to handle that kind of money. Typically, a person immediately faces people asking for loans, as well as scammers and robbers wanting to take their money. And this is psychologically difficult. Often, people resort to extreme measures, so to speak: long trips, expensive drugs, changing families, buying luxury items, and so on.
As for periodic payments, this option is good because it will be difficult for you to spend all the money at once. It's psychologically more convenient. The downside is that you could die before the entire amount is paid.

[Futurexxx]

This sounds very tricky and juicy, but considering the fact that $34million is still a significant amount of money, the logical choice is the installment payment of $34million for 29 years.

The question i have for the op is that why on earth would the gambler  win such a jackpot, and instead of him to be paid in full, they decide to give him such a condition, as if when he was losing, they were placing conditions on his losing.
In addition to that, am really surprised that gamblers in the US are being charged that high on tax, because I am sure that they wouldn't do anything when such gambler is constantly losing, that's really unfair on those that gambles in the US, and I believe that they will also tax the casino. The tax system there is just too crazy

[Outhue]

A man in Illinois won a $1.04 billion jackpot a few days ago, now he has to choose how he would receive his money.
He could accept a total sum of $450 million at once or receive 30 payments in instalments for the next 29 years.
The lump sum of $450 million sounds nice, but when you consider the taxes, you might be walking home with just over half of that money at the end of the day. I'm not a tax expert, and I don't know the tax regulations of the US or the state, but from my rough reading, you'll have to pay about 40%-42% total in taxes for that amount.

If you receive payment in instalments for 29 years, you would receive about $34 million years. So if you take out a total tax payment of about 40%, you would receive about 20-21 million every year after tax.
So what would you choose if you were the one?
For me, I would choose to receive the payment by instalment. $20 million a year puts me in the top 1% of earners in the world, and I can do whatever investment I want to with that. With a payment like that, I may not even need to touch a penny from the other payments.

The full story here and Here

I'm telling you, the most crazy thing that I can never imagine in my life is paying this much tax on your own money, there is no way anyone can give me good offer or slot to travel and live in the US that I will accept, there is no way I will share my money with the government all in the name of tax, I'd rather become a nameless person.

You have choose the best answer already, I am sure that many people will do the same, it's better to take the money slowly and use it to establish something good for yourself than taking the huge amount and having to split 40% with your government, mahn! That's crazy, no wonder we have so many tax evader classes in America where they teach the safer ways to completely avoid taxes.

[Yablee0]

I would have prefer receiving it by instalment for the next 29 year's as mentioned.  But tomorrow is indeed unpredictable. What about if I'm no more in existence what happens next? or probably the people that was supposed to be paying me this money in the next year's to come decide to play a fast one on me what becomes my fate or my stand in it? However, these are situations I really need to consider first before taking any decisions that may affect me tomorrow because thing's can really change over time especially when it involves such huge amount of money. Remember humans are very greedy so to secure my peace and to be at the safer side I will prefer cashing it all at once to seal up the deal regardless the tax that's involved.

[xenomorfo]

There is no better option in a situation like this one, it's more about which one the person prefers. 29 years is a long time, what's the guarantee that the casino will still be active by then, but then the lump sum can be considered by some as being cheated out of their winnings but as long as it's a choice for the winner then any option is good, they can walk away with the lump sum or they can play the long game and keep receiving payment for 29 years.
I will be picking the instalment over the lump sum though as long as there is a guarantee that if something happens to me the money will still go to my family. I wouldn't want to risk giving the casino a chance to attempt an assassination on me in order to stop paying me.

I don't think casinos commit murder, at least not these days.
They do the calculations well and it seems obvious to me that if you die they give them to a family member.
They no longer beat or kill someone, they don't need it.
If you happen to be smart you end up straight in court with so much money to pay that no one cheats casinos.

[Nrcewker]

You know how many lottery winners go broke within a few years? Rather than take a lump sum and start frivolously spending and taking care of friends and family, I would take the payout over 20 or 30 years so I know my family is taken care of for many years. I'd hate to be broke 5 years after winning and have to change my lifestyle up.

There is a strong possibility that you might blow through all your money in five years. But over 30 long years, are we just ignoring inflation? The money you receive today in the first year, will it have the same value after 30th year payment?

Moreover, whether you pay tax on the yearly amount or on the lump sum, the tax rate will remain the same right? I think it would be wiser to receive the money and pay the tax as a lump sum. After that you could invest a larger portion of the money in some kind of investment, such as banks offering lower interest rates where the risk is relatively low.

You would be making money from your money and whenever necessary, you could simply withdraw the amount you need. You would also reduce the risk of inflation and devaluation. Wouldn’t this be more practical?

[yahoo62278]

You know how many lottery winners go broke within a few years? Rather than take a lump sum and start frivolously spending and taking care of friends and family, I would take the payout over 20 or 30 years so I know my family is taken care of for many years. I'd hate to be broke 5 years after winning and have to change my lifestyle up.

There is a strong possibility that you might blow through all your money in five years. But over 30 long years, are we just ignoring inflation? The money you receive today in the first year, will it have the same value after 30th year payment?

Moreover, whether you pay tax on the yearly amount or on the lump sum, the tax rate will remain the same right? I think it would be wiser to receive the money and pay the tax as a lump sum. After that you could invest a larger portion of the money in some kind of investment, such as banks offering lower interest rates where the risk is relatively low.

You would be making money from your money and whenever necessary, you could simply withdraw the amount you need. You would also reduce the risk of inflation and devaluation. Wouldn’t this be more practical?

I don't think the value of money is going to go down that much over 30 years. Even if money was worth half the value in 30 years that it is today it's still 10 million dollars that a person can look forward to. Everyone has their own opinion but this is how I would do it. I would want some sort of stability to look forward to.

[Somegory]

Tax is the only enemy standing in the way, it's the only reason why people will choose the slower payout rather than taking everything at once, if tax isn't in the way id prefer to cash out at once and go home.

I'm not even bothered with this question but that amount of money, have anyone ever earn something close to this amount in this world of gambling before?

Or should I say since this forum was created have anyone ever won a close figure of 1 million in dollars from any online casino before? This amount of money could wreck a online casino, if I won such amount I will doubt it I will ever get paid to the fullest.

[Ishicryptic]

I would have prefer receiving it by instalment for the next 29 year's as mentioned.  But tomorrow is indeed unpredictable. What about if I'm no more in existence what happens next? or probably the people that was supposed to be paying me this money in the next year's to come decide to play a fast one on me what becomes my fate or my stand in it? However, these are situations I really need to consider first before taking any decisions that may affect me tomorrow because thing's can really change over time especially when it involves such huge amount of money. Remember humans are very greedy so to secure my peace and to be at the safer side I will prefer cashing it all at once to seal up the deal regardless the tax that's involved.

For most of us we will prefer the easy part which would be to be collecting easy money for 29 years without stress, even if we don't work for all that years we would still live very comfortably and we can have enough balance to continue living comfortable for the rest of our lives but because of unforseen circumstances that might stop the money from coming it is better to think twice about the option. Everything you mentioned are possible to happen that would end the payments of the money and it can happen sooner than later so it is better to play safe and take what you can and move on with it. You have a total control of the money in your custody if a casino pays it to you they also move on and it would depend on you to either manage it well or misuse it like we hear about some gamblers that hit the jackpot and later waste everything which is very unfortunate.

[bakasabo]

I would not take all the money at once. I think that if suddenly a person receives a large amount of money, it will 1) spoil him 2) he will use those money quick and unwise. Even thought receiving million during 20-30 years is also a lot, I think it will help people to do planning and have better use of money. It will be something like receiving a huge salary.