re: The eternal Powerball question: lump sum vs installment plan?

Lump because I want to pay cash for the new house, and boats. Then invest the rest and live off the interest.

All these people talking investments. Honestly with that much money it could make 0% and you would have a hard time spending it in a lifetime.

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Annuity = $675 divided by 29 = $23.27 mill per year taxed = almost $14 million per YEAR in bring home.
Over 29 years you're bringing home $405 million vs $247 million.

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Good post, except for:
The powerball installments do not work like this. You don't take the amount and divide by 29 or 30 to get your yearly payment.

The first year you would receive approximately 10 million. The last year you would receive a little over 41 million.

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I am also not an idiot with money and I might beable to spend 6.5 million the first few years without an issue but after that I might have trouble spending that much every year and I'm assuming I will be giving a lot to charity and family and friends.

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No, your tastes will grow grander as will your spending. Spending begets spending. That huge amount you've invested will become very tempting to tap into.

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Also, hookers and blow.

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I'd imagine that I would just hire hot coeds in all my business offices and over pay them because i'm hitting it.

All in on a lump sum payment!

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so doesnt that put you in the 39.5% bracket for taxes every year.

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Damn dude. There is a a tax rate schedule. If you make 500,000 a year you don't pay 39.6% on the whole amount. You pay 10% on everything up to 18,850 - 15% on everything over 18,850 up to 75,300 - 25% percent for over 75,300 up to 151,900, etc.

So if in 2016 you make $500,000 are married and file a joint return you would pay 143,666 in taxes. This is an effective tax rate of 28.73% and not 39.6%.

You pay taxes based on a schedule which gradually increases the more money you make. With installments each year you are paying 10% on a portion of the income.

Take the lump sum and convert 99% of it to gold. Take the remaining 1% and buy Yeti coolers to store the gold. Sit on that for a decade and I'll be sitting pretty

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I wouldn't even bother with starting a business.

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Trying to start a business and investing in friends' half baked business ideas seems like it would be the way that most of these people who come into big wealth quickly waste their money. They throw themselves into a business that they have no experience running and haven't worked their way into, slowly gaining necessary experience, and of course the business goes belly up. It just ends up being a huge waste of funds. I think there are a ton of failed restaurants founded by current and former NFL players.

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Take the lump sum and convert 99% of it to gold. Take the remaining 1% and buy Yeti coolers to store the gold. Sit on that for a decade and I'll be sitting pretty

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Owning real gold is dumb for many reasons but for tax purposes, it's taxed as a collectable at 28% when you sell it unless you are selling to shady people off the grid which, at some point, they are going to shoot you dead and take all of it any how. Don't ever buy real stuff. If you have too, invest in a fund that owns mining companies.