$490,000,000 - give or take a bit

[DAB]

that's the estimated net take for the mega millions winner from SC.

relevant math here: https://www.foxbusiness.com/features...the-tax-damage

so let's apply some math: say they stick it in a low fee mutual fund. and they just draw 4% per year.

year 1, they'd draw $19,600,000.

say the money increases by 7%, that would result in the account being $503,328,000 at the start of year 2.

wash, rinse, repeat. you can see that this will get out of hand real quickly.

and with $1,633,000+ to spend each month, that's $54,444+ each DAY.

you cannot spend it that fast. and giving it away, ah....the IRS is way ahead of you: they cap you at $15,000 per recipient per year without creating more tax problems. so you'd have to find 3 or 4 new people each day, every day, to have a chance of giving it all away. "hi, want 15k? here you go"

not a problem i want to have.

[MrPeabody]

I have never bought a lottery ticket in my life. In my state they take half the money and give it to the school system. Casino odds are ridiculously better than that. Even a casino takes less than 10% in profits

[86RAG]

Originally Posted by DAB

that's the estimated net take for the mega millions winner from SC.

relevant math here: https://www.foxbusiness.com/features...the-tax-damage

so let's apply some math: say they stick it in a low fee mutual fund. and they just draw 4% per year.

year 1, they'd draw $19,600,000.

say the money increases by 7%, that would result in the account being $503,328,000 at the start of year 2.

wash, rinse, repeat. you can see that this will get out of hand real quickly.

and with $1,633,000+ to spend each month, that's $54,444+ each DAY.

you cannot spend it that fast. and giving it away, ah....the IRS is way ahead of you: they cap you at $15,000 per recipient per year without creating more tax problems. so you'd have to find 3 or 4 new people each day, every day, to have a chance of giving it all away. "hi, want 15k? here you go"

not a problem i want to have.

Unlikely a problem I'll ever have!

[snide]

The winner should have taken the annuity...

[JRD77VET]

Originally Posted by snide

The winner should have taken the annuity...

Why?

No guarantee the lottery will be solvent to finish out the payments. ( big incentive for them to not pay )

Extremely conservative investments would have bigger gains than the annuity.

Since the lawyer represented the winner, we have no idea of the winner's age. they might be in their upper 70s. If that is their approximate age, why take a 25 year payout? Get the lump sum and structure your will as you want.