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

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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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True, but there are safer business to enter. Like I said, I would go with real estate in towns within the SEC's footprint. Buy up old housing and remodel them making them more attractive to students wanting to live off campus. Then you hire seasoned veterans from other companies within the area to run it for you. You can do the same with chain restaurants. I would like to bring in In N Out Burgers to the southeast and put at least one in every SEC town. Instead of trying to run it myself knowing damn well I don't know what I'm doing, I'd just hire a veteran that has the experience and pay then 30k-40k more a year and let them build the staff. I'd just put my buddies in as my district managers and let them keep eyes on it for me and pay them good as well.

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The best way to do that is when you go to claim the money. Just say you were a lotto club and everyone gets a certain percentage or amount. You can only gift a person $14k per year to a max of 5.45 million without having to pay taxes. So if you give someone $20k in a year you have to pay a 40% tax on everything over $14k. If you exceed the 5.45 million everything over is taxed at 40%.

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IRS won't allow that. You would need to have a contract set up before the purchase of tickets saying what percentages people get and money contributed. Otherwise you would have to say we went in together and you would get equal proportions.

I wouldn't want to put myself in the position of having to rely on other's expertise that much. It could too easily turn into a money pit. People take advantage of these sorts of situations. SFP and Hammertime had it right. Invest the majority into index funds. Maybe carefully put some money into investment properties for tangible assets and added cash flow. Then if I get bored I might start a small business and slowly learn the ropes for myself of how to run it and build it up if it proves to be profitable over time. But mostly I'd just be travelling.

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Again, you do not understand when someone wins the powerball they either hand that person a check or purchase an annuity for them, from that point forward the solvency of the lottery corporation or the state has nothing to do with it, it is in the hands of the insurance company

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Again, I understand that but it doesn't change the fact that people in Illiois haven't been getting any Lotto, powerball or megamillions checks for 6 months or more so something at the state level is screwing people over and if you think dealing with any government anywhere is ever fool proof, your wrong.

You might have the same concern, though, with your annuity company if we got an '08 type meltdown.

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I wouldn't want to put myself in the position of having to rely on other's expertise that much. It could too easily turn into a money pit. People take advantage of these sorts of situations. SFP and Hammertime had it right. Invest the majority into index funds. Maybe carefully put some money into investment properties for tangible assets and added cash flow. Then if I get bored I might start a small business and slowly learn the ropes for myself of how to run it and build it up if it proves to be profitable over time. But mostly I'd just be travelling.

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I have my degree in Finance and minored in Econ. My best friend has his in Accounting and his MBA. The real estate would be easier for both of us to manage. My buddy also has 5 years of restaurant management experience too. It wouldn't be that difficult. I'm not trying to pour a frick ton of money into either, just about 10-15 million combined.

With that type of money there are way better investments than index funds, I'd be on the phone with a couple private equity firms I'm familiar with


These guys are ivy league/goldman sachs types


eta: they are trusted by people with way more money than a lotto winner

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Everyone miraculously becomes a fricking financial analyst wizard when Powerball goes wayyyy overboard.

God Bless the USA, baby!


Keep America on pins and needles for a year.

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And you'll be shite out of luck because you only have 180 days after the drawing to claim the prize.

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What happens to the installments if you die? Do they cease? I'm taking lump sum regardless, but just curious. If they installments don't survive your death, you are talking a huge risk for your family if you take the installments.

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This.