I bought one of those lottery tickets for that lottery you win 1miilion a year for 25 years thing.
You can either take the 1 million per year for 25 years, or take a lump sum payout of 17 million.
Seeing as I am going to win and all, I was wondering what would you do? Would you take the lumpsum or would you take do the yearly thing?
too many unknown variables......
your age
amount of taxes you'll pay on the $17M
interest rates
your investment plans on the lump sum option
level of your generosity and number of relatives
for me........I take the lump sum
Hmmm...that's a tough one. I think that I would take the lump sum. I can do without 8 mil. Who knows where our Government is going to be in 25 years. For all I know, records could be "mysteriously":lost or there is "insufficient" funds.
Lump sum then give myself a weekly allowance from Lise Bank.
Take the lump sum.
I'd take the lump sum in a heartbeat. I'm sure I could get by with only 17 million dollars.
[FONT size=4]---"How blest the Paradise to come!"
Ah, take the Cash in hand and waive the Rest"
[/FONT]
lump sum, and invest.
i would love to make a deposit into the bank of lise.
i would love to make a deposit into the bank of lise.
[/DIV]OMG someone's in the GUTTER! (//vny!://discoverseattle.net/forums/richedit/smileys/Shocked/3.gif)
Ricky and Julian would take the $17 million and "invest" it in a new business opportunity. By the end of the episode, they could be back to square one.
Aboozer wrote:
Yah I think I would take the 17 mil. When I win I'll mail each person above me 20 bucks for their time.
Don't forget, you owe me a beer! 24!
Yeah......me too......er.....whatever.
*I just want to get in on the 20 bucks.
Aboozer wrote:
Aboozer wrote:
Yah I think I would take the 17 mil. When I win I'll mail each person above me 20 bucks for their time.
There.....now I'm in.[/DIV]
P.C., just to be sure, you should get the OP to repost his kind offer .
Damn, you're fast.
[img style="CURSOR: pointer" onclick=url(this.src); src="vny!://www.cheesebuerger.de/images/more/bigs/c008.gif" border=0]
Well, we're talking 20 BUCKS here.
Ya aren't I generous. For PC though I'll up it to $25
We actually had this discussion last week..
We are down the middle on it.. cause you will get NAILED with taxes if you take a lump sum. But at the same time, if you take the grand a week, over a 'lifetime' the buying power of that money will diminish as well as it might make a difference if taxes are raised. We MUST pay for lazy people to sit on welfare and collect more than the minimum wage people whom actually work.
there is no tax on lottery winnings in Canada that's only in the U.S.
Really?
They do tax it as it adds onto your income tax does it not? Ive always been under teh impression that the do? Im going to have to ask my accountant now. LOL!
haha..
google it
in the US, there is no state tax but there is Federal tax
EDIT: I bet there is tax (both US and Canada) on the interest you earned from your investment if you take it as a lump sum and put in the bank
Yup, you're right 49er. You get taxed on your interest earned because it has to be declared. You don't get taxed on Lotto winnings in Canada. I like that part. :)
purelife wrote:
......You don't get taxed on Lotto winnings in Canada. I like that part. :)[/DIV]
Great, that's one less problem I need to concern myself when I win the Canadian Lotto when I visit
I hope that it hasn't changed... I haven't checked for a while. I do know that inheritance money doesn't get taxed.
purelife wrote:
I hope that it hasn't changed... I haven't checked for a while. I do know that inheritance money doesn't get taxed. [/DIV]
Really? you are sure on that? I thought thats where you get nailed with the death tax.
I think the estate is taxed (ie sale of property and investments subject to capital gains) but the beneficiary is not.
but I'm not certain as I don't have a long-lost elderly uncle.
most likely as we have here, there is a limit.........I think it was first $4 million but may have gone up, anything over this limit is taxed
Tomorrow's, March 6, Mega Million jackpot is $355,000,000.
[H1]'It just has to be your day'[/H1] [H2]$355 million Mega Millions jackpot has Californians dreaming big[/H2] [P class=byline][A href="mailto:
[email protected]"]Demian Bulwa, Chronicle Staff Writer[/A]
[P class=date]Monday, March 5, 2007
[SPAN id=articlebody]
(03-05) 20:30 PST -- It's California Problem Gambling Awareness Week, but don't tell that to the millions of people clamoring for a chance to win one of the nation's biggest-ever lottery jackpots. On the back of each Mega Millions ticket is a suggestion to "play responsibly," but on the front are numbers, and Tuesday at 8 p.m. a combination of those digits is expected to be worth $355 million. The jackpot, California's largest since voters here approved lotteries in 1984, is prompting game players to quit jobs, buy mansions and travel to the tropics -- all without leaving the comfort of their imaginations. "I realize I don't have a chance, but nobody's got a chance. So the way I look at it, I have a 50-50 chance -- either I win it or someone else wins it," reasoned Barrie Green, 60, after buying a single ticket Monday afternoon at the Merritt Restaurant and Bakery near his home in Oakland. "Good luck, sir," said cashier Weida Han, who chose not to explain to Green that his odds of winning -- and being able to quit his job driving cars to auctions -- are 1 in 175,711,536. The estimated value of Tuesday's drawing in the twice-weekly game is just $10 million less than the record high set in February 2006 by another multi-state game, Powerball, in which California does not participate. The drawing will be held in New York's Times Square. It couldn't come at a better time for the California lottery, which in recent months has been faced with an unusual problem: People are winning too often in the 12-state Mega Millions game, which California joined in June 2005. Wins prevent the prize pool from rolling over and growing irresistible. From July to December of last year, just one jackpot climbed over $150 million, an amount that will buy far fewer yachts and Tuscan villas than $355 million. The result: The state lottery revised its forecast for sales in the current fiscal year, which ends in June, from $3.6 billion to $3.2 billion. That means $1.13 billion to public education rather than $1.27 billion. Lottery spokesman Rob McAndrews said the state lottery takes problem gambling seriously and spends $100,000 a year fighting it. The agency is airing public-service announcements on radio and television all month. That's good news to Bruce Roberts, the executive director of the California Council on Problem Gambling in Anaheim. The lottery helps fund his group, which staffs a toll-free help line; the number is on the back of tickets. The bad news, Roberts said, is that the lottery can be an addiction or a "gateway" into more costly gambling. Roberts said he was buying coffee at a gas station Monday morning when an elderly man bought 200 tickets. "It's a little past a game at that point," Roberts said. If the lottery is a game, the Merritt Restaurant and Bakery is a modest field of dreams. Near cakes and custard confections, the owners set aside a cash register dedicated only to Mega Millions, the Daily Derby and other ways to pick and scratch. They plan to use two cashiers today -- one to take money and the other to issue tickets, but still expect a line out the door. If someone picks the winning numbers, the business gets $1 million. On Monday, some players were not to be bothered. "I'm trying to concentrate here," said Fred Giddings as he hunched over a tableful of tickets, staring at the numbers like they were pieces of a difficult Sudoku puzzle. He said he would turn in the tickets later, when his lucky cashier was back from her break. Joe Perkins, 59, allowed a machine to randomly pick numbers for the six tickets he bought. "Age and birthdays, it really doesn't work," said the retired U.S. Postal Service supervisor. "It just has to be your day." Pointing back toward the cashier, Perkins said, "That's the American dream right there, and it'll only cost you a dollar." P.J. Moriarty, a retired San Francisco police officer now living in Oakland, bought five tickets. He said he sometimes calculates lottery payouts in his head as a way of falling asleep at night -- like counting sheep. But he was having trouble getting his head around the $355 million. "It would become a full-time problem trying to spend the money," he said. "You can only eat one steak a night." Also without a firm spending plan was Annabell Forsse, an 88-year-old neighborhood resident with a wide smile who bought two tickets. "When you're this age, you don't think about buying a lot of stuff. And I don't drive, so I don't need a car," she said. "This just gives me something to do. I'm by myself and I get lonely. My husband passed away last year after 65 years of marriage. I have to stay busy."
[/SPAN]
This one is easy, because:
- There is no tax in Canadian lottery.
I once did this calculation in my accounting class, few variables are thrown in, but the jest of it is:
- ALWAYS take the lump sum as the time value of money is higher now than later.
- There is always price index increase, in case of economic depression, the lottery might be out of money thus can't pay you anymore, bank can only guarantee $100,000 at a time, not $75M.
- Obviously you should not do anything stupid and blew it all up in one shot and you should invest portion of it and diversify and live off the interest.
- Last but not least, you should take consideration of your age and life style, because some people might be dead before 25 years is over.