store clerk wins $258.5 mil powerball lottery

[JP-pornshooter]

wow, thats a lot of cash to put in the hands of someone who only had $28 and change in the bank.
my guess is that he will be broke, homeless, divorced and or dead in less than 2 years.

http://www.msnbc.msn.com/id/36723890...rld/?GT1=43001

[TheDA]

Nice chunk of change

WHat's the tax on that?

[candyflip]

Hopefully today...he's getting some teeth.

[kristin]

Originally Posted by TheDA

Nice chunk of change

WHat's the tax on that?

About 45-50% between federal and state tax.

[JFK]

Originally Posted by JP-pornshooter

wow, thats a lot of cash to put in the hands of someone who only had $28 and change in the bank.
my guess is that he will be broke, homeless, divorced and or dead in less than 2 years.

http://www.msnbc.msn.com/id/36723890...rld/?GT1=43001

you are probably right

[TheDA]

Originally Posted by kristin

About 45-50% between federal and state tax.

Still not too bad I suppose

[fatfoo]

Originally Posted by JP-pornshooter

he will be broke, homeless, divorced and or dead in less than 2 years.

All of the things you listed are bad, except divorce.

[Wizzo]

Originally Posted by kristin

About 45-50% between federal and state tax.

Its 28% federal tax and have no clue what the state tax would be since we don't have that here...

[JP-pornshooter]

if he is smart then he relocates to FL before taking the winnings, as in FL there is no state taxes.
oh wait, he is not smart, at all...

[pornguy]

Hrm.. I did not think the store clerks could win! Sounds a little tricky to me. Like someone could have brought in the winner..

[kristin]

Originally Posted by Wizzo

Its 28% federal tax and have no clue what the state tax would be since we don't have that here...

That's because Texas should be its own country.

[Loch]

Ahh to live in a country where you have to walk around with teeth like that becourse you are broke.....fantastic lol

[Sweet Smile]

one strike of a luck

[Wizzo]

Originally Posted by kristin

That's because Texas should be its own country.

[Tom_PM]

He's probably locked into whatever state he lived in when he won, else everyone would be advised to move. His state tax will probably bring the total taxed up to like 45% yeah, pretty sucky but it's better than jail time.

What a lucky bastard! Congrats to the winner!

[D Ghost]

He is now worth more than most slimy and thieving U.S. politicians, the ones that feed off of our tax money and never have to worry about paying their utility bills.

It is sad when people have to worry about paying such a simple basic need like water, food, electricity, etc.

"We didn't come from money. For us it's just going to be a huge relief to know I'm going to be able to pay my electric bill, my gas bill," [Chris Shaw] told the Associated Press. "It's like a weight lifted. I had bills at home I didn't know how they were going to be paid."

good for him

[Kenny B!]

"Shaw said he needed a few days to decide whether he will keep his minimum-wage job at the store where he has worked for just three weeks. "

Um yeah right!

[BestXXXPorn]

He also plans to seek advice "from people who know about money" about whether to take the jackpot in 30 payments over 29 years or the lump-sum amount of $124,875,122.

Here's some good advice if you ever win a lottery, TAKE THE LUMP SUM!

There's companies out there that actually bail out people who take payments... They buy their winnings because they're government backed annuities. VERY safe and very high earning... They then resell those annuities to investors and take points off the top.

Very lucrative business but what ends up happening with these people is once they're "the guy who won the lottery" to all their neighbors, friends, family... they're expected to pay for everything everywhere they go. They buy a new house, new cars, etc... but usually people playing the lottery have no experience managing money. They over spend, get themselves in debt and companies like Stone Street sweep in for the bailout.

[96ukssob]

honestly, im glad someone like this won then the typical multi-millionaire who says "im going to use the money to buy a second fleet of helicopters"

of course, i wish it would of been me

[BestXXXPorn]

Originally Posted by bossku69

honestly, im glad someone like this won then the typical multi-millionaire who says "im going to use the money to buy a second fleet of helicopters"

of course, i wish it would of been me

LOL, I've never even heard of millionaires playing the lottery...

[TheDA]

Originally Posted by BestXXXPorn

He also plans to seek advice "from people who know about money" about whether to take the jackpot in 30 payments over 29 years or the lump-sum amount of $124,875,122.

Here's some good advice if you ever win a lottery, TAKE THE LUMP SUM!

There's companies out there that actually bail out people who take payments... They buy their winnings because they're government backed annuities. VERY safe and very high earning... They then resell those annuities to investors and take points off the top.

Very lucrative business but what ends up happening with these people is once they're "the guy who won the lottery" to all their neighbors, friends, family... they're expected to pay for everything everywhere they go. They buy a new house, new cars, etc... but usually people playing the lottery have no experience managing money. They over spend, get themselves in debt and companies like Stone Street sweep in for the bailout.

I would never go public with a huge win. I think people that do choose the publicity will live to regret it. Everyone has their own circumstances though obviously.

[BestXXXPorn]

Originally Posted by TheDA

I would never go public with a huge win.

Doesn't matter, you're entered into a national database that those companies watch like hawks :P

[JFK]

Originally Posted by TheDA

I would never go public with a huge win. I think people that do choose the publicity will live to regret it. Everyone has their own circumstances though obviously.

eventually you have to, its part of the game

[TheDA]

I was talking about ME. I would never go public. Too many people think they are entitled to some of it when you go public. You get flooded with begging letters.

[TheDA]

Originally Posted by JFK

eventually you have to, its part of the game

Not here it's not. Opt out of publicity and no tax to pay on it either.

[JP-pornshooter]

i think in california you can also opt to be anonymous, since i dont often play the lottery i guess my chance is that i will never win..
btw, some call the lottery for "tax on stupidity" or poor mans tax...

[Semi-Retired-Dave]

I think he will be racing Nascar first, then go broke.

[Wizzo]

Originally Posted by BestXXXPorn

Here's some good advice if you ever win a lottery, TAKE THE LUMP SUM!

There's companies out there that actually bail out people who take payments... They buy their winnings because they're government backed annuities. VERY safe and very high earning... They then resell those annuities to investors and take points off the top.

Excellent advice, So I should take the 50% lump sum rather than the govt. backed annuity which I can sell for 70-90% of the value depending on the size of the win and have much larger lump sum?

[media]

Originally Posted by Wizzo

Its 28% federal tax and have no clue what the state tax would be since we don't have that here...

Actually he'd prolly move up in the bracket, he'll prolly pay like 55% of it to state, federal, and social security taxes if he takes a lump sum..

[vittle]

bankrupt within 2 years

[Fetish Gimp]

[Wizzo]

Originally Posted by media

Actually he'd prolly move up in the bracket, he'll prolly pay like 55% of it to state, federal, and social security taxes if he takes a lump sum..

Its income from gambling reported on Form W-2G so not regular income and there's no brackets its 28% federal, doesn't matter whether its $600 or $60,000,000 and then whatever the state takes.

[2012]

god bless him

[KRosh]

If you all really want to know how much tax he will pay here it is....

For winnings of $5,000.01 and over, your state's Department of Revenue removes the 25 percent federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check). You then receive a W-2G form with each check to submit with your 1040 form to show that the 25 percent federal withholding already has been paid. In addition to federal tax, your state will make additional withholdings for taxes, and most states will deduct other money that you may owe to the state, such as back taxes, child support, loan payments, etc

Missouri 4% state withholding

[KRosh]

Originally Posted by JP-pornshooter

i think in california you can also opt to be anonymous, since i dont often play the lottery i guess my chance is that i will never win..
btw, some call the lottery for "tax on stupidity" or poor mans tax...

you can find all your answers here ....

http://www.usamega.com/powerball-faq.htm



If I should win the jackpot, do I have the option of remaining anonymous as far as the public and the media are concerned?

In most states, lottery winner information is public domain, therefore it is public information. Publicized information normally includes the jackpot winner's name, city, county, game in which they won, date won, and the amount of the prize.

[Cyber Fucker]

Originally Posted by kristin

About 45-50% between federal and state tax.

that would be a daylight robbery....

[HandballJim]

Originally Posted by vittle

bankrupt within 2 years

it seems only white trash win these lotteries.

[digitaldivas]

...somebody is having a great fucking year

[ErectMedia]

lump sum is nice because then you can invest, however someone that has never had money maybe 4 million + for the next 29 years might be a wiser decision.

[seeandsee]

Originally Posted by JP-pornshooter

my guess is that he will be broke, homeless, divorced and or dead in less than 2 years.

http://www.msnbc.msn.com/id/36723890...rld/?GT1=43001

dead broke for real 200mils?!?

[Jarmusch]

Guaranteed he'll be on the streets looking for his next crack hit in 3.5 years.

[NE1469]

I'd take annuity and then buy a house/property in a State that has no personal income tax. This way you only pay the State (you currently live in) tax with the first years check. After fed tax that gives you about 6.5 million(?) tax free a year for 29 years with ZERO risk!

[bloggerz]

congrats to him

[RyuLion]

Congratz to the winners!

[kane]

Originally Posted by BestXXXPorn

He also plans to seek advice "from people who know about money" about whether to take the jackpot in 30 payments over 29 years or the lump-sum amount of $124,875,122.

Here's some good advice if you ever win a lottery, TAKE THE LUMP SUM!

There's companies out there that actually bail out people who take payments... They buy their winnings because they're government backed annuities. VERY safe and very high earning... They then resell those annuities to investors and take points off the top.

Very lucrative business but what ends up happening with these people is once they're "the guy who won the lottery" to all their neighbors, friends, family... they're expected to pay for everything everywhere they go. They buy a new house, new cars, etc... but usually people playing the lottery have no experience managing money. They over spend, get themselves in debt and companies like Stone Street sweep in for the bailout.

If it were me advising him I would tell him to do just the opposite and take the payments. Here is why. The way I understand it you get around 20-25K per year per million won for 30 years after taxes. It depends on where you live and the tax level. This allows you to actually get more of the money because when you take the lump sum it is only half of the total jackpot and then they tax that. So he could get 124 million, but they would tax that amount so he will actually end up with around 70-80 million. That is still a ton of money, but only about half what he would get if he takes the payments.

The other reason is that the payments last 30 years. So if he spends the first 5 years of his payments buying stupid stuff and getting suckered into bad investments and he loses it all, he still has 25 years left to get his shit together. Even if he doesn't ever get his shit together he will live a pretty good life on around 6-8 million a year for 30 years. He is 29 years old now so he would be 60 when the payments run out. Even if he just put 200K per year away in a savings account at 2% interest he would have 8.6 million waiting for him when he hits 60 years old.

If he takes the lump sum up front and blows through it all it is possible in a few years that he will be broke and have no hope of ever making that money back.

I'm not saying he won't so something stupid with the payments, but the odds are a lot less that he will screw his life up with them.

[kane]

Originally Posted by NE1469

I'd take annuity and then buy a house/property in a State that has no personal income tax. This way you only pay the State (you currently live in) tax with the first years check. After fed tax that gives you about 6.5 million(?) tax free a year for 29 years with ZERO risk!

I'm not 100% sure, but it may not work that way. They may tax you in the state you won it in for each payment since you were a resident of that state when you won it. Even if they did I agree with you. I would take the payments. You get twice as much money in the long run and the odds of you fucking your life up with it are a lot slimmer.

[David!]

Always take the lump sum payment, set aside 10 to 15% that will be your "fun" money, invest the rest in something secure that can generate monthly revenues that will kick in once your "fun" money is gone or once you are tired of blowing money on BS.
Also, I thought that in the case of the Powerball, you did not have the option of being anomymous, in reality they state that:

All but three states (DE, KS, ND) have laws that require the lottery to release the name and city of residence to anyone who asks. One state (SC) will keep your name secret if you request it, but if someone files a Freedom of Information Act request, you may have to file a plea with the judge to deny it. Another state (OK) now has a law that allows you to claim in a trust and to keep your name from the press (though the lottery will run checks on you). Photos and press conferences are up to you for most, but not all states. Check with your state lottery to see if photos or more are required. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview. A few more lotteries may work with you on setting up a trust or other partnership. You or your representative should contact the lottery for the details after you win.

[will76]

Originally Posted by DJ The Kid

It is sad when people have to worry about paying such a simple basic need like water, food, electricity, etc.

typically what happens to simple minded people, they have trouble paying simple things.
also happens to iresponsible people who can't take care of their finances and buy shit they can't afford.
also happens to people who blow their money on gambling, drugs, cigs, alcohol, etc...

I could go on. There are lots of reasons why people struggle with basic bills which are not sad, it's just a fact of life and in most cases something they created on their own.

Case in point, this guy worried about paying his bills, but spent money on the lottery. Sure he won, but odds were better he would get stuck by lightening 10x. He should have been spending his money on his bills not the lotto.

What is really sad, is that in 2-3 years everyone and their grandmaw will have ripped off the simple minded guy and he will be broke. He doesn't sound like the type to go buy 10 sports cars and 20 million dollar home. Sounds more like the type that will be suckered and swindled by everyone who comes to him with ideas, help, or god knows what.

[kane]

Originally Posted by MCO_David

Always take the lump sum payment, set aside 10 to 15% that will be your "fun" money, invest the rest in something secure that can generate monthly revenues that will kick in once your "fun" money is gone or once you are tired of blowing money on BS.
Also, I thought that in the case of the Powerball, you did not have the option of being anomymous, in reality they state that:

All but three states (DE, KS, ND) have laws that require the lottery to release the name and city of residence to anyone who asks. One state (SC) will keep your name secret if you request it, but if someone files a Freedom of Information Act request, you may have to file a plea with the judge to deny it. Another state (OK) now has a law that allows you to claim in a trust and to keep your name from the press (though the lottery will run checks on you). Photos and press conferences are up to you for most, but not all states. Check with your state lottery to see if photos or more are required. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview. A few more lotteries may work with you on setting up a trust or other partnership. You or your representative should contact the lottery for the details after you win.

that is a logical idea, the problem is that most people who win the lottery have no idea how to invest it and they don't take the time to educate themselves and surround themselves with people that do.

There was a show I watched a little while back about people who won big lotteries and lost it all. One guy was 27 and won around 100 million. He took the lump sum and ended up with about 30 million after taxes. At first he was smart. He got married (was already engaged) and threw a nice wedding and had a nice honeymoon. Then he bought a nice house for he and bride to start a family in. His brother had a business idea and he invested heavily into that only to find out that they were beat to the market with the idea and the money basically was lost. He then invested in second business that went bankrupt and he lost that money. This happened time and again eventually he took the last of his money and invested it into a resort. The resort was then fixed up and sold and it turns out his business partner screwed him and walked away with all the money.

He was 27 when he won. By the time he was 31 he had lost every penny of it in bad investments. Sadly, stories like this are not uncommon. I think the lottery office should assign people to help advise these winners and at least give them a few counseling sessions on what type of investments to avoid, how to say no and how to save and spend wisely.

[Barefootsies]

Good for the clerk. Cha-ching