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Started By
Message
Lottery winnings
Posted on 10/15/13 at 7:58 pm
Posted on 10/15/13 at 7:58 pm
Tomorrow's Powerball jackpot, after taxes, would be worth approximately $62,440,000 in Louisiana if only one person wins the jackpot and if that winner takes the lump sum.
With that much money, what would one do with it? Seriously, where does one even put that kind of money? Is there some obscure type of account that only the mega-rich can invest with that allows that kind of money to be insured?
Seems as though this kind of money would create more problems than it would solve.
Would you just have to "gift" a lot of it away in order to protect you from outrageous taxes?
I can only dream of winning this kind of money but if I ever do win this amount of money, I have no idea what I would do. I know one thing and one thing only: I'd first seek out the best financial professional that money could buy. Second: I'll tell the wife.
After that, I have no earthly idea!
With that much money, what would one do with it? Seriously, where does one even put that kind of money? Is there some obscure type of account that only the mega-rich can invest with that allows that kind of money to be insured?
Seems as though this kind of money would create more problems than it would solve.
Would you just have to "gift" a lot of it away in order to protect you from outrageous taxes?
I can only dream of winning this kind of money but if I ever do win this amount of money, I have no idea what I would do. I know one thing and one thing only: I'd first seek out the best financial professional that money could buy. Second: I'll tell the wife.
After that, I have no earthly idea!
7
Posted on 10/15/13 at 8:09 pm to TDsngumbo
That's what CPAs are for.
This post was edited on 10/15/13 at 8:13 pm
Posted on 10/15/13 at 8:11 pm to TDsngumbo
I would put 60 percent in tax free bonds, 20 in stocks and 20 percent in alternatives, real estate, etc. why take risks when you could generate 2.5 million per year, mostly tax free!
Posted on 10/15/13 at 8:12 pm to ell_13
quote:
You would only be taxed on the capital gains from the investments. $62M is yours to spend (sales tax only).
Right, but wouldn't you have a ton of taxes to pay on the income that $62M earns you? I would think that "gifting" some of it away via starting college scholarship funds or something else like that would offset a good bit of those taxes.
Posted on 10/15/13 at 8:13 pm to ell_13
quote:
You would only be taxed on the capital gains from the investments. $62M is yours to spend (sales tax only). The taxes are done in terms of income on that money. You could just keep the cash and try to spend $1M/year for the rest of your life. But you may want to leave some behind. Taxes could take it then, but any CPA should know how to avoid most of those.
Negative, you pay income tax on the full amount
Posted on 10/15/13 at 8:14 pm to Tigerpaw123
quote:
Negative, you pay income tax on the full amount
Because technically, those winnings are "income" according to the IRS, no?
Posted on 10/15/13 at 8:16 pm to TDsngumbo
Yes it is considered income, on the bright side you could deduct the $2 you spent to buy the ticket 
Posted on 10/15/13 at 8:17 pm to Tigerpaw123
quote:I meant after that first year you pay income taxes. This is why I edited. Knew I would sound ignorant after re-reading.
Negative, you pay income tax on the full amount
Posted on 10/15/13 at 8:19 pm to TDsngumbo
But it looks like you have already accounted for the income tax hit
Tomorrow's jackpot is156 million if taken as an annuity
If cash it would be reduced to89.2 million and 60% (rough est of fed and state income taxes) is 53.5 million
Tomorrow's jackpot is156 million if taken as an annuity
If cash it would be reduced to89.2 million and 60% (rough est of fed and state income taxes) is 53.5 million
Posted on 10/15/13 at 8:20 pm to ell_13
quote:
I meant after that first year you pay income taxes. This is why I edited. Knew I would sound ignorant after re-reading.
Posted on 10/15/13 at 8:21 pm to TDsngumbo
quote:
With that much money, what would one do with it? Seriously, where does one even put that kind of money? Is there some obscure type of account that only the mega-rich can invest with that allows that kind of money to be insured?
well, if you have ask.....
quote:
Seems as though this kind of money would create more problems than it would solve.
ha, would solve just about every single problem i have.
quote:
Second: I'll tell the wife.
sucker.
Posted on 10/15/13 at 8:23 pm to Tigerpaw123
quote:
If cash it would be reduced to89.2 million and 60% (rough est of fed and state income taxes) is 53.5 million
After tax winnings in Louisiana
Posted on 10/15/13 at 8:57 pm to TDsngumbo
quote:
if I ever do win this amount of money, I have no idea what I would do
You can give some to me.
Posted on 10/15/13 at 9:17 pm to TDsngumbo
Set up a trust and take care of any estate tax issues in the first year of the winnings. Set up a loan agreement using a fixed product and collect another stream of tax free income years later. Live large and travel the world.
Posted on 10/16/13 at 5:10 am to Doink
1. Hire Poodlebrain
2. Whatever I want
3. ?????
4. Profit
2. Whatever I want
3. ?????
4. Profit
Posted on 10/16/13 at 7:02 am to Janky
When you come into that kind of money your goal is not to become richer with investments but its to stay rich.
I would invest in municipal bonds which are tax free and fairly low risk.
I would invest in municipal bonds which are tax free and fairly low risk.
Posted on 10/16/13 at 9:37 am to TDsngumbo
Id buy a ton of class 1 farmland and rent it out. I would just have a landlord office where I drank coffee and BS'd all day. maybe half a day 
Posted on 10/16/13 at 9:46 am to TDsngumbo
My advice...
Hire a CPA, Tax Attorney and Financial advisor. Have them all meet together to discuss the best possible tax savings and investment strategies.
Hire a CPA, Tax Attorney and Financial advisor. Have them all meet together to discuss the best possible tax savings and investment strategies.
Posted on 10/16/13 at 10:05 am to TDsngumbo
Taxes are a fact of life. There are ways to mitigate the "burden". That's what good CPA's and Financial Advisors do for a living. Find good help and enjoy your income FTW!
Posted on 10/16/13 at 11:17 am to TDsngumbo
That site isn't exactly accurate. There is a WSJ article on this. The taxes on the income will be higher unless you put the money into certain things to lower your tax burden. That is why you get a Poodlebrain.
This post was edited on 10/16/13 at 11:19 am
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