Say you won the lottery...
14 November 2010, 06:21 PM
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Say you won the lottery...
...what do you get a the end of the day?
We're watching a programme atm and a couple in the US won over 105 million dollars, but took a lump sum after tax of only 33 million. How does that work?
We're watching a programme atm and a couple in the US won over 105 million dollars, but took a lump sum after tax of only 33 million. How does that work?
14 November 2010, 06:25 PM
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Either way, i don't understand how they come away with less than a third of the winnings.
Another winning ticket of 208 million dollars, was won by a syndicate of 100 folk....each person took $660,000!!!
Another winning ticket of 208 million dollars, was won by a syndicate of 100 folk....each person took $660,000!!!
14 November 2010, 06:37 PM
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That's pretty pi$h although I'd still be happy with 33 million!!
Found this:
Prize Winnings
•Lottery winners can obtain their prizes by either a lump sum of the prize or by annual payments. For annual payments, the state will invest the jackpot in bonds, and when the bonds mature every year, the bank will cash them in and send a check to the winner. For the lump sum option, the winner will automatically receive about half of the jackpot. Since the state uses half of the jackpot to invest in bonds for annual payments, the original amount to be invested or paid out in lump sum is about the same. Most people opt for the lump sum so they can invest the money in their own fashion. Either way, the federal and state governments will take out a good portion (around 40 percent) for taxes.
Found this:
Prize Winnings
•Lottery winners can obtain their prizes by either a lump sum of the prize or by annual payments. For annual payments, the state will invest the jackpot in bonds, and when the bonds mature every year, the bank will cash them in and send a check to the winner. For the lump sum option, the winner will automatically receive about half of the jackpot. Since the state uses half of the jackpot to invest in bonds for annual payments, the original amount to be invested or paid out in lump sum is about the same. Most people opt for the lump sum so they can invest the money in their own fashion. Either way, the federal and state governments will take out a good portion (around 40 percent) for taxes.
15 November 2010, 11:44 AM
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I'd need a sustained income of £300K per year and I could stay perpetually on holiday 
which works out at...
£5mm*(1+((7%/periods per year)/100))^(total number of periods)
assuming
1) i win £5mm
2) interest can be had at 7%
monthly compounding would get me £361450 a year in interest
and....
3) I start buying lottery tickets lol
which works out at...
£5mm*(1+((7%/periods per year)/100))^(total number of periods)
assuming
1) i win £5mm
2) interest can be had at 7%
monthly compounding would get me £361450 a year in interest
and....
3) I start buying lottery tickets lol
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15 November 2010, 10:49 PM
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Yes, look at it another way, if average inflation is 4% for 20 years that sum will only buy half the holiday it will now, even if you leave the principal untouched. £175k = £3.5k / week.
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