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  • She took the lump sum...

    What would you have done? Yesterday's Powerball winner of 780 million was about 12 years from retiring, and took a lump sum of 380 million, probably wouldn't live long enough to reap the benefits of long term payout, but I know I certainly would have delayed gratification.

  • #2
    Take the lump sum.
    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.

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    • #3
      I'd take the lump sum, mainly because I don't trust the government to pay me what they'd owe me over 20 years. Illinois lottery winners recently had this issue.

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      • #4
        You have to run the numbers for a net present value comparison and see whether the lump sum or the series of payments makes more sense.

        Assuming an identical net present value, it's better to have cash in hand rather than a promise of future payments.  You're going to be in the top income rate for the rest of your life either way with this kind of money.

        Need the use of a great (not merely good) trust and estate attorney.  This is one of those rare cases where some amount of whole life or an annuity might make sense.

        With $380M, you have a big target on your back for kidnapping, gratuitous lawsuits, in-laws and outlaws coming out of the woodwork, etc.  Mo money, mo problems.

        An alarmingly high number of lotto winners and professional athletes end up broke and/or dead within 5-10 years of coming into money.  Enjoy your newfound fortune, but try to avoid becoming a statistic.

        Might as well set up a donor advised fund or charitable trust for the causes you care about.  Heck, your heirs and their heirs might take a tidy salary for the "work" of advising and running your foundation or charitable trust.

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        • #5
          Was it possible to accept the prize anonymously, through a trust, etc?

          Seems like a huge mistake that her friends (and family) know her name.

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          • #6
            First thing I would have done was NOT show my face or give my name out.  And if required I would have worn an outfit resembling something like a full body suit Chewbacca outfit to the press conference and spoken in one-word answers using a Christian Bale Batman voice.  And yes - lump sum.

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            • #7
              It sounds like the lump sum makes the most sense in her case. But I agree, I don't know why she didn't remain anonymous. My husband happened to be in ID over the weekend and since we don't have the lotto here in UT, I told him to buy a ticket for fun. So we were discussing what we'd do if we won. Both agreed we'd remain anonymous. But I guess we don't have to worry about that . . .

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              • #8
                I'd try to hide the fact I won as much as possible. Maybe work a few more weeks and cut back eventually. With that amount of money, I really wouldn't worry about a malpractice suit. I could just pay it in cash.

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                • #9
                  Definitely the lump sum. And I definitely agree about being anonymous...if possible.

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                  • #10
                    $758.7 million Powerball winner already broke one rule. What else not to do

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                    • #11




                      What would you have done? Yesterday’s Powerball winner of 780 million was about 12 years from retiring, and took a lump sum of 380 million, probably wouldn’t live long enough to reap the benefits of long term payout, but I know I certainly would have delayed gratification.
                      Click to expand...


                      Absolutely would take the lump sum. Who needs 780 million?  380 is plenty (although I read it was 443?).  After the 25% or so taxes you're still left with over 260 mil.  A 4% withdraw rate on that would give you 10.5 million dollars a year for the rest of your life to spend on whatever you want.  Plus you'd still have the original principle or more left when you die to pass on to your loved ones or to charity.  I think I could get used to that kind of lifestyle

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                      • #12
                        It looks like Massachusetts made her lose her anonymity. This sounds unnecessary

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                        • #13
                          Just curious if any of you play the lottery?  They're frequently pooling money together at our hospital and I usually watch from the sideline.

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                          • #14


                            Was it possible to accept the prize anonymously, through a trust, etc?
                            Click to expand...


                            Only certain lottery holding states allow the winner to stay anonymous. And only a few allow a trust owners to also remain anonymous and not disclosable, in case you want to collect the money through a trust

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                            • #15
                              My concern is that putting a set of trust structures together is not something that happens in a day or two.   I am guessing she left alot of money on the table from a tax perspective by being hasty in claiming the prize.

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