re: Arkansas has a new Billionaire

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Lump sum they’ll be lucky to clear $650MM after taxes.

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Meh......I wouldn't even buy a ticket for that.

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What happens with taxes if he donates all the winnings to charity?

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Would max out at 60% deductible in current year. If taking the lump sum donating all would result in over $100M in taxes owed (after giving all the money away, would owe over $100M).

However there would be supplemental pay withholding on the lump sum, so not really possible to donate all, around 25% is withheld. Same situation they would get $50-100M at filing

Long story short, this would be a very bad tax move.

What a scam….win 1.8 billion but after taxes clear only 8 million…think about who truly benefits…hmmmm

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“Lucky” to be handed $650 million dollars. Good grief.

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What they end up with is great and life changing for generations of properly managed.

My point was how much is scrapped of the top by the government.

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What they end up with is great and life changing for generations of properly managed.

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They won’t.

The numbers are atrocious.

Many people know how and are successful at making bank.

Keeping it, building it and becoming a savage is a whole other game. Some people just get it, most do not.

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The numbers are atrocious.

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Believe I know. The sad part is this person could ladder CDs and live an amazing life for generations without touching the principal. They most likely won’t.

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They won’t. The numbers are atrocious. Many people know how and are successful at making bank. Keeping it, building it and becoming a savage is a whole other game. Some people just get it, most do not.

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Best thing to do with a huge sum like that is take say 15% and buy what you’ve always wanted. Take the rest and invest it in apprecisting assets that give you an annual return. Mutual funds, stocks, or farmland/real estate you can lease or rent. Use the proceeds to live off of, don’t touch the lump sum. Biggest mistake most make is buying so much stuff that either depreciates or has a shite ton of upkeep and taxes. You don’t need to own a yacht, or a private jet, or several vacation homes. People that afford those things have businesses that generate millions each year that pay for it. A lotto winner does not.

So the key is to invest. Say you invest 400 million and get a 10% annual return. That’s 40 million a year. That can be more than enough to live off if you don’t go buy a bunch of expensive shite with millions in upkeep and millions in property taxes. Instead of buying a yacht and paying a crew to operate it, rent one when you want to. Don’t buy a 10 million dollar jet and pay a pilot, just charter one when you want to travel. Don’t buy 6 different vacation homes, just rent them out when you want to go there. Own a nice primary residence, maybe one nice vacation home in your favorite place, have a couple luxury vehicles and a couple toys you always wanted but have low upkeep costs. Don’t invest in businesses you know nothing about. Just let a financial advisor handle the large sum, tell him invest it safely and send me the dividends. Then you live within the means of that income.

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Additional federal owed at filing: ~13% (~$108.5 million).

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WTF is this?

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My point was how much is scrapped of the top by the government.

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Yes, the government gets the taxes but if you’re getting half of the payout, it’s because you chose to accept one lump sum vs yearly payments.

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I like when I hear someone say they’ll buy a lotto ticket of the prize reaches X amount. Bc a $95M jackpot just isn’t worth the effort. Has to be $100M.

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Sure but the difference in 20 million and 1.8 billion is astronomical. Especially when you consider what you actually take home. Most of us could blow through 6 million pretty quickly. Pro athletes do it all the time and end up broke. Not saying I’d do that but you’d have to exercise some caution. It’d be damn near impossible to spend $600 million on yourself.