Rancher wins 232 million dollar powerball.....

[bigfreddy]

i never understand why people take the lump sum at once. Instead of getting payments of it overtime with interest. shit he's 23, by the time he's 43 he would of got the whole amount and then some

In theory you can get better money performance than an annuity can. 232 million over 25 years is 9.28 mil annually; tax rate is the same as a lump sum, so roughly 6.87 million net for 25 years. Now, take 88 million and instead invest conservatively, say even bond funds. Most bond funds are going to average around 5% return, more in down economies like we have now. At 5% your annual income is 4.4 million, less 15% capital gains, leaves 3.7 million annually. However, the principal never reduces, so the 88 million is always available. Depending on your level of interest regarding investing, money management, etc., I would say cash option is the way to go.

If I would have won (and I did have a ticket, fubar), I would have put about half in government bond funds, getting a guarntee ROI of a couple million a year. Most of the rest would have gone into real estate, given the down market it's a great time to buy, especially commercial property. A few million to family and charity, plus one very nice Vegas weekend with Jesse Flores.

[baileyandkc]

who knows, he may now be looking for a TG wife!

[NYBURBS]

http://news.aol.com/article/rancher-wins-powerball/516332?icid=main|aimzones|dl1|link2|http%3A%2F%2Fn ews.aol.com%2Farticle%2Francher-wins-powerball%2F516332

Dude only took home 88 million though which is roughly 37% LOL!

Well yea between lump sum and taxes (I'm assuming that included taxes). He needs to bee-line to a top rate tax attorney that specializes in hiding money through shell corporations lol, so he can get something back. Either way he's set for life, and hopefully he doesn't let the money cause him other issues.

[flabbybody]

i never understand why people take the lump sum at once. Instead of getting payments of it overtime with interest. shit he's 23, by the time he's 43 he would of got the whole amount and then some

In theory you can get better money performance than an annuity can. 232 million over 25 years is 9.28 mil annually; tax rate is the same as a lump sum, so roughly 6.87 million net for 25 years. Now, take 88 million and instead invest conservatively, say even bond funds. Most bond funds are going to average around 5% return, more in down economies like we have now. At 5% your annual income is 4.4 million, less 15% capital gains, leaves 3.7 million annually. However, the principal never reduces, so the 88 million is always available. Depending on your level of interest regarding investing, money management, etc., I would say cash option is the way to go.

If I would have won (and I did have a ticket, fubar), I would have put about half in government bond funds, getting a guarntee ROI of a couple million a year. Most of the rest would have gone into real estate, given the down market it's a great time to buy, especially commercial property. A few million to family and charity, plus one very nice Vegas weekend with Jesse Flores.

the problem is you can lose your principle in those so-called conservative bond funds. Even some muni funds were down 50% in 2008.

but I love the part about the Jesse weekend in Vegas

[TommyFoxtrot]

i never understand why people take the lump sum at once. Instead of getting payments of it overtime with interest. shit he's 23, by the time he's 43 he would of got the whole amount and then some

In theory you can get better money performance than an annuity can. 232 million over 25 years is 9.28 mil annually; tax rate is the same as a lump sum, so roughly 6.87 million net for 25 years. Now, take 88 million and instead invest conservatively, say even bond funds. Most bond funds are going to average around 5% return, more in down economies like we have now. At 5% your annual income is 4.4 million, less 15% capital gains, leaves 3.7 million annually. However, the principal never reduces, so the 88 million is always available. Depending on your level of interest regarding investing, money management, etc., I would say cash option is the way to go.

If I would have won (and I did have a ticket, fubar), I would have put about half in government bond funds, getting a guarntee ROI of a couple million a year. Most of the rest would have gone into real estate, given the down market it's a great time to buy, especially commercial property. A few million to family and charity, plus one very nice Vegas weekend with Jesse Flores.

I love this site. It pulls all sorts of people into it's orbit, and I get to learn all this interesting stuff. I think the best threads I've read here have nothing to do with TS.

[Regisbou]

How bout putting the money in 6 month CD's? I mean 5.4% in 6 months?! thats soo much money.

You could live off of the 5.4% of 88 million and make the CD interest your annual income. Then eventually just live a super awesome lifestyle for a few years and go back to normal.

Think about it this way. 1 million dollars is 100k salary a year for 10 years... so 88 million you do the math.

[florida_raul]

with that money, I would buy every tranny dvd ever made, fillout my fridge and have nice handywork. lol