Random Thoughts

[Cody_Russell]

I figured $490 would be left after federal tax at the 39% tax rate.
I'm not sure what it would be after state tax if that was a factor.

I should know cuz of my major (Accounting and Finance) and I just took a class about income taxation for individuals a year ago... but I'm not entirely sure.

[-Deborah-]

Cody, the lump sum payment of $496 million is before taxes. It's the "cost" of getting your cash up front instead of in a yearly annuity. I can only imagine the taxes. Probably 100 million??

[Panoptes]

Closer to 45+%

[Malto Marko]

Given that an NBA team was sold for 2B I am guessing 400M will not touch an NFL franchise.

......and there will be no partial sale, if it does get sold, it will be the entire shebang.

[Malto Marko]

Cody, the lump sum payment of $496 million is before taxes. It's the "cost" of getting your cash up front instead of in a yearly annuity. I can only imagine the taxes. Probably 100 million??

Taxes would be close to 50%.

I heard cash payout in a lump sum would be 285M.

Edit: So go figure the Government runs the game but they will take 2/3 of the money if you want a cash pay out. They want to keep the money to be able to continue to have a cash flow and steal from the taxpayers.

[Cody_Russell]

Cody, the lump sum payment of $496 million is before taxes. It's the "cost" of getting your cash up front instead of in a yearly annuity. I can only imagine the taxes. Probably 100 million??

Ah thx. Didn't realize the lump sum for up front goes that low before taxes.

[Sharkbait]

Still a lot of jack.

[Cody_Russell]

So with around $285 million, you could still buy some interesting things.

WNBA team?

[Malto Marko]

Still a lot of jack.

So with around $285 million, you could still buy some interesting things.

WNBA team?

So, if someone is lucky enough to win. Why take a cash pay out? You get enough to start of with to pay all your bills, buy some new digs, and a few toys.

Why not take it in installments?

Anyone that wins something like this needs a trusted Lawyer, CPA, and Financial Advisor in his corner before claiming the prize.

[CGVT]

Cody, the lump sum payment of $496 million is before taxes. It's the "cost" of getting your cash up front instead of in a yearly annuity. I can only imagine the taxes. Probably 100 million??

Closer to 45+%

I think that is about right. They were talking about the lump sum after taxes on the news when the jackpot was 500m. I was a little surprised on how much was taken taking the lump sum payout and taxes. It was well over half of the 500m

[SeattleLionsFan]

The lump sum payout takes the time value of money into account. It makes sense if you do not think you can get a better return on the money over 20 years. It's about 5% if memory serves.

[Malto Marko]

The lump sum payout takes the time value of money into account. It makes sense if you do not think you can get a better return on the money over 20 years. It's about 5% if memory serves.

Getting too technical here.

Government allows it because they benefit both ways.

You take a lump sum, they keep 2/3. You take a 20 year pay out and they have time to raid the coffers before you finish getting paid and there is nothing left for you.

[LightninBoy]

The lump sum payout takes the time value of money into account.

Exactly.

It makes sense if you do not think you can get a better return on the money over 20 years. It's about 5% if memory serves

Wouldn't you take the lump sum if you think you *can* get a better return on the money over 20 years?

[edindetroit]

Getting too technical here.

Government allows it because they benefit both ways.

You take a lump sum, they keep 2/3. You take a 20 year pay out and they have time to raid the coffers before you finish getting paid and there is nothing left for you.

Incorrect, the money is front loaded into an annuity that pays you over the installment period. The gubmint can't touch it.

[Panoptes]

Incorrect, the money is front loaded into an annuity that pays you over the installment period. The gubmint can't touch it.

.

Investment saviness aside, post receipt, you'll bring home way more over time versus taking the lump.