geecue2

800,000,000 498,000,00 cash, what would you do

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I am sure everybody has noticed the big pool, curious what everyone would do with that kind of prize.  I would do what ever I wanted to.   :surfing:   

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Excerpted from another site:

 

Congratulations! You just won millions of dollars in the lottery! That's great.

Now you're fucked.

No really.

You are.

You're fucked.


You see, it's something of an open secret that winners of obnoxiously large jackpots tend to end up badly with alarming regularity. Not the $1 million dollar winners. But anyone in the nine-figure range is at high risk. Eight-figures? Pretty likely to be screwed. Seven-figures? Yep. Painful. Perhaps this is a consequence of the sample. The demographics of lottery players might be exactly the wrong people to win large sums of money. Or perhaps money is the root of all evil. Either way, you are going to have to be careful. Don't believe me? Consider this:

Large jackpot winners face double digit multiples of probability versus the general population to be the victim of:

Homicide (something like 20x more likely)
Drug overdose
Bankruptcy (how's that for irony?)
Kidnapping

And triple digit multiples of probability versus the general population rate to be:

Convicted of drunk driving
The victim of Homicide (at the hands of a family member) 120x more likely in this case, ain't love grand?
A defendant in a civil lawsuit
A defendant in felony criminal proceedings

Believe it or not, your biggest enemy if you suddenly become possessed of large sums of money is... you. At least you will have the consolation of meeting your fate by your own hand. But if you can't manage it on your own, don't worry. There are any number of willing participants ready to help you start your vicious downward spiral for you. Mind you, many of these will be "friends," "friendly neighbors," or "family." Often, they won't even have evil intentions. But, as I'm sure you know, that makes little difference in the end. Most aren't evil. Most aren't malicious. Some are. None are good for you.

Jack Whittaker, a Johnny Cash attired, West Virginia native, is the poster boy for the dangers of a lump sum award. In 2002 Mr. Whittaker (55 years old at the time) won what was, also at the time, the largest single award jackpot in U.S. history. $315 million. At the time, he planned to live as if nothing had changed, or so he said. He was remarkably modest and decent before the jackpot, and his ship sure came in, right? Wrong.

Mr. Whittaker became the subject of a number of personal challenges, escalating into personal tragedies, complicated by a number of legal troubles.

Whittaker wasn't a typical lottery winner either. His net worth at the time of his winnings was in excess of $15 million, owing to his ownership of a successful contracting firm in West Virginia. His claim to want to live "as if nothing had changed" actually seemed plausible. He should have been well equipped for wealth. He was already quite wealthy, after all. By all accounts he was somewhat modest, low profile, generous and good natured. He should have coasted off into the sunset. Yeah. Not exactly.

Whittaker took the all-cash option, $170 million, instead of the annuity option, and took possession of $114 million in cash after $56 million in taxes. After that, things went south.

Whittaker quickly became the subject of a number of financial stalkers, who would lurk at his regular breakfast hideout and accost him with suggestions for how to spend his money. They were unemployed. No, an interview tomorrow morning wasn't good enough. They needed cash NOW. Perhaps they had a sure-fire business plan. Their daughter had cancer. A niece needed dialysis. Needless to say, Whittaker stopped going to his breakfast haunt. Eventually, they began ringing his doorbell. Sometimes in the early morning. Before long he was paying off-duty deputies to protect his family. He was accused of being heartless. Cold. Stingy.

Letters poured in. Children with cancer. Diabetes. MS. You name it. He hired three people to sort the mail. A detective to filter out the false claims and the con men (and women) was retained.

Brenda, the clerk who had sold Whittaker the ticket, was a victim of collateral damage. Whittaker had written her a check for $44,000 and bought her house, but she was by no means a millionaire. Rumors that the state routinely paid the clerk who had sold the ticket 10% of the jackpot winnings hounded her. She was followed home from work. Threatened. Assaulted.

Whittaker's car was twice broken into, by trusted acquaintances who watched him leave large amounts of cash in it. $500,000 and $200,000 were stolen in two separate instances. The thieves attempted to spiked Whittaker's drink with prescription drugs in the first instance. Whittaker was violently allergic to the drug used, and likely would have died given the distance to the nearest emergency room, and the lateness of the hour, but, unfortunately he did not consumed the drink containing the narcotics. The second incident was the handiwork of his granddaughter's friends, who had been probing the girl for details on Whittaker's cash for weeks.

Even Whittaker's good-faith generosity was questioned. When he offered $10,000 to improve the city's water park so that it was more handicap accessible, locals complained that he spent more money at the strip club. (Amusingly this was true).

Whittaker invested quite a bit in his own businesses, tripled the number of people his businesses employed (making him one of the larger employers in the area) and eventually had given away $14 million to charity through a foundation he set up for the purpose. This is, of course, what you are "supposed" to do. Set up a foundation. Be careful about your charity giving. It made no difference in the end.

To top it all off, Whittaker had been accused of ruining a number of marriages. His money made other men look inferior, they said, wherever he went in the small West Virginia town he called home. Resentment grew quickly. And festered. Whittaker paid four settlements related to this sort of claim. Yes, you read that right. Four.

His family and their immediate circle were quickly the victims of odds-defying numbers of overdoses, emergency room visits and even fatalities. His granddaughter, the eighteen year old "Brandi" (who Whittaker had been giving a $2100.00 per week allowance) was found dead after having been missing for several weeks. Her death was, apparently, from a drug overdose, but Whittaker suspected foul play. Her body had been wrapped in a tarp and hidden behind a rusted-out van. Her seventeen year old boyfriend had expired three months earlier in Whittaker's vacation house, also from an overdose. Some of his friends had robbed the house after his overdose, stepping over his body to make their escape and then returning for more before stepping over his body again to leave. His parents sued for wrongful death claiming that Whittaker's loose purse strings contributed to their son's death. Amazingly, juries are prone to award damages in cases such as these. Whittaker settled. Again.

Even before the deaths, the local and state police had taken a special interest in Whittaker after his new-found fame. He was arrested for minor and less minor offenses many times after his winnings, despite having had a nearly spotless record before the award. Whittaker's high profile couldn't have helped him much in this regard.

In 18 months Whittaker had been cited for over 250 violations ranging from broken tail lights on every one of his five new cars, to improper display of renewal stickers. A lawsuit charging various police organizations with harassment went nowhere and Whittaker was hit with court costs instead.

Whittaker's wife filed for divorce, and in the process froze a number of his assets and the accounts of his operating companies. Caesars in Atlantic City sued him for $1.5 million to cover bounced checks, caused by the asset freeze.

Today Whittaker is badly in debt, and bankruptcy looms large in his future.

But, hey, that's just one example, right?

Wrong.

Nearly one third of multi-million dollar jackpot winners eventually declare bankruptcy. Some end up worse. To give you just a taste of the possibilities, consider the fates of:

Billie Bob Harrell, Jr.: $31 million. Texas, 1997. As of 1999: Committed suicide in the wake of incessant requests for money from friends and family. “Winning the lottery is the worst thing that ever happened to me.â€

William “Bud†Post: $16.2 million. Pennsylvania. 1988. In 1989: Brother hires a contract murderer to kill him and his sixth wife. Landlady sued for portion of the jackpot. Convicted of assault for firing a gun at a debt collector. Declared bankruptcy. Dead in 2006.

Evelyn Adams: $5.4 million (won TWICE 1985, 1986). As of 2001: Poor and living in a trailer gave away and gambled most of her fortune.

Suzanne Mullins: $4.2 million. Virginia. 1993. As of 2004: No assets left.

Shefik Tallmadge: $6.7 million. Arizona. 1988. As of 2005: Declared bankruptcy.

Thomas Strong: $3 million. Texas. 1993. As of 2006: Died in a shoot-out with police.

Victoria Zell: $11 million. 2001. Minnesota. As of 2006: Broke. Serving seven year sentence for vehicular manslaughter.

Karen Cohen: $1 million. Illinois. 1984. As of 2000: Filed for bankruptcy. As of 2006: Sentenced to 22 months for lying to federal bankruptcy court.

Jeffrey Dampier: $20 million. Illinois. 1996. As of 2006: Kidnapped and murdered by own sister-in-law.

Ed Gildein: $8.8 million. Texas. 1993. As of 2003: Dead. Wife saddled with his debts. As of 2005: Wife sued by her own daughter who claimed that she was taking money from a trust fund and squandering cash in Las Vegas.

Willie Hurt: $3.1 million. Michigan. 1989. As of 1991: Addicted to cocaine. Divorced. Broke. Indicted for murder.

Michael Klingebiel: $2 million. As of 1998 sued by own mother claiming he failed to share the jackpot with her.

Janite Lee: $18 million. 1993. Missouri. As of 2001: Filed for bankruptcy with $700 in assets.

Mack Metcalf: $65 million. Kentucky. 2000. As of 2001: Divorced. As of 2002: Sued girlfriend for $500,000 claiming he was drunk when he gave it to her. Sued by wife for child support. As of 2003: Died of alcoholism. As of a few months later in 2003: Second wife bought a mansion with the money, collected dozens of stray cats and died of a drug overdose immediately after moving in.

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800 million US dollars over a 30 year payout minus 40% a year paid to UncleSam and Mr. (I refuse to call him Governor) Hoopylooper is $26,666,666.66 a year - 40% taxes = $15,999,999.99 a year. Could you possible spend, give away, donate, invest, endow all that money in one year? 30 years of guaranteed money? Why would you take the cash option? Everyone has many years to live, hopefully, after winning the lottery. Why would you risk dying early and/ or financial ruin in a few years by taking that much cash out in one lump sum? As Doctor Emmett Brown might say

"Think of your future, young man!"...

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46 minutes ago, bd5671 said:

800 million US dollars over a 30 year payout minus 40% a year paid to UncleSam and Mr. (I refuse to call him Governor) Hoopylooper is $26,666,666.66 a year - 40% taxes = $15,999,999.99 a year. Could you possible spend, give away, donate, invest, endow all that money in one year? 30 years of guaranteed money? Why would you take the cash option? Everyone has many years to live, hopefully, after winning the lottery. Why would you risk dying early and/ or financial ruin in a few years by taking that much cash out in one lump sum? As Doctor Emmett Brown might say

"Think of your future, young man!"...

I see your point if I was a young man. 

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Buy a nice retirement villa in a country where prostitution is legal.  Invite classy and legal age ladies for regular and lengthy all expenses paid (and then some),  relaxing trips.  Round trip of course. Die one day with huge smile on face.  Leave anything left to a legal defense and scholarship foundation.

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2 hours ago, bd5671 said:

...... Why would you risk dying early and/ or financial ruin in a few years by taking that much cash out in one lump sum? ....

 

I would take the cash option with out any reservation.  

By taking the annuity, you assume the lottery is going to be here 10-20yr from now.  You assume the rules will be the same.  You also assume the lottery system as we know it, will still be healthy and able to pay your winnings.  You also assume you will still be around to enjoy the money for the next 10-20 years.  Risk dying early???  Sorry, that does not compute.

If you take the lump sum then you are in control.  You are free to invest it, spend it, or buy your Alaskan dream home.  You have to have will power to be in control.

An annuity is like investing for dummies.

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1 minute ago, inkspot said:

I would take the cash option with out any reservation.  

By taking the annuity, you assume the lottery is going to be here 10-20yr from now.  You assume the rules will be the same.  You also assume the lottery system as we know it, will still be healthy and able to pay your winnings.  You also assume you will still be around to enjoy the money for the next 10-20 years.  Risk dying early???  Sorry, that does not compute.

If you take the lump sum then you are in control.  You are free to invest it, spend it, or buy your Alaskan dream home.  You have to have will power to be in control.

An annuity is like investing for dummies.

When the states all go bankrupt and the stock market folds, and the world economy is all in tatters, then I'll worry. Until then, I will trust in the Lord and invest, diversify and reap the dividends...

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10 hours ago, geecue2 said:

I am sure everybody has noticed the big pool, curious what everyone would do with that kind of prize.  I would do what ever I wanted to.   :surfing:   

I would buy the little man a new hat and take him out to play! :D

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I would give a generous cash gift to any providers who had, at any point in time, given me a long, teasing, intense blow-job with lots of eye contact, leading up to an explosive CIM finish.  It's not too late to join the (so far) very exclusive circle of potential beneficiaries.  Just PM me.  Gentlemen need not apply.

This is not entirely hypothetical since I just bought 20 quick-pics.

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Personally, I would go nucking futs!

Buy a private island, have all the lovely ladies come out for a great time! Not all at once though... unless they wanted that is...

 

B)

 

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Projected  $1.3 B by Wednesday... this is gettin' crazy!

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I'd probably lose it all in a week's worth of strip clubs in Las Vegas.:(

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I'd secretly buy a new house, far, far away (Hawaii? Costa Rica? South of France?), set up a plan to pay me 10K monthly for 50 years, and give the rest away to established charities VERY PUBLICLY (to try to avoid the leaches). :)

 

 

 

 

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2 hours ago, Katman said:

Projected  $1.3 B by Wednesday... this is gettin' crazy!

I would predict at least 1.5 Billion by the next drawing.  Sounds crazy just saying that. 

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On 1/8/2016 at 2:07 PM, bd5671 said:

800 million US dollars over a 30 year payout minus 40% a year paid to UncleSam and Mr. (I refuse to call him Governor) Hoopylooper is $26,666,666.66 a year - 40% taxes = $15,999,999.99 a year. Could you possible spend, give away, donate, invest, endow all that money in one year? 30 years of guaranteed money? Why would you take the cash option? Everyone has many years to live, hopefully, after winning the lottery. Why would you risk dying early and/ or financial ruin in a few years by taking that much cash out in one lump sum? As Doctor Emmett Brown might say

"Think of your future, young man!"...

15.9M/year for 30 years or cash pay out of 500M.   I don't think there is a difference in the likelihood of early death or other calamities that happen to big lotto winners.

Things that I know:   I will likely  pass away before spending either amount.   If I don't take the cash,  the money disappears when I die.  If I do take the cash,  family/friends/charities will get the money when I die.  

There is no reason for an insurance company, that the lottery buys the annuity from. to get the money when I die.  

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1 hour ago, frankenthaler91 said:

...Things that I know:   I will likely  pass away before spending either amount.   If I don't take the cash,  the money disappears when I die.  If I do take the cash,  family/friends/charities will get the money when I die. ...

 

Frank, I disagree.

When you die, the annuity becomes part of your estate. To be distributed according to your will.

Probably the best way to take the winnings is to form a trust. That way, the myriad of moochers that show up

can be told "no" because your trust won't allow it.

If you win, consult a good and reputable attorney. You can afford it.

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55 minutes ago, Johnboy#1 said:

Frank, I disagree.

When you die, the annuity becomes part of your estate. To be distributed according to your will.

Probably the best way to take the winnings is to form a trust. That way, the myriad of moochers that show up

can be told "no" because your trust won't allow it.

If you win, consult a good and reputable attorney. You can afford it.

 

Signature

 

I stand corrected.  I looked it up on the Powerball website.   That may have been something other than the Powerball Lotto.  Or another urban legend that I did not full investigate  before opening my pie hole!   

I still believe in having control over "my" money.   Like when moving from 1 job to another.  If you have the option to take a pension and roll it to an IRA,  do so.  To a lessor degree,  also always take your 401K.  

Edited by frankenthaler91
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I wonder if the winner could transfer the ticket to their attorneys and remain anonymous. 

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9 minutes ago, Raoul said:

I wonder if the winner could transfer the ticket to their attorneys and remain anonymous. 

 

CAN I REMAIN ANONYMOUS WHEN I HIT THE JACKPOT?

All but a handful of states (DE, KS, MD, ND, OH for now) have laws that require the lottery to release the name and city of residence to anyone who asks. Some states are considering anonymous claims. Some states are considering a one-year period of anonymity to give the winners time to get used to their new lifestyle. Other states may offer to assist you in some way, including such things as the creation of trusts. But generally, you will want to hire an attorney to review the laws in your state to see what options you might have. Photos and press conferences are up to you for most part, though some states add a requiremment for photos on their tickets. 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. Even if the you can keep your identity secret from the press and the public, you will have to be known to the lottery - so they can confirm that you are eligible to play and win.

 

http://www.powerball.com/pb_contact.asp

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7 minutes ago, Raoul said:

I wonder if the winner could transfer the ticket to their attorneys and remain anonymous. 

Yes, in fact this is the way to do it.  

Irrevocable Blind trust, specifying in advance what and when the payments are, with yourself named as the grantor an beneficiary, and one of the nations top 10 legal firms as the trustee.

The trustee turns in the ticket for the trust.  No one ever knows who you are, unless you can't keep a secret.

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On 1/10/2016 at 11:27 AM, frankenthaler91 said:

15.9M/year for 30 years or cash pay out of 500M.   I don't think there is a difference in the likelihood of early death or other calamities that happen to big lotto winners.

Things that I know:   I will likely  pass away before spending either amount.   If I don't take the cash,  the money disappears when I die.  If I do take the cash,  family/friends/charities will get the money when I die.  

There is no reason for an insurance company, that the lottery buys the annuity from. to get the money when I die.  

Colorado allows to to designate a beneficiary to receive the rest of the lottery money you would receive, after you die. Form a perpetual trust, create a corporation, appoint an administrator/ trustee to manage the trust, and take annual/ monthly payments from the trust. Find a reputable tax attorney/ CPA to pay your taxes, a proven investments counselor to invest your money wisely and safely,  and an estate planner to set up a living will, manage your estate, and provide for your health and welfare should you become infirm or incapacitated. Hire a personal attorney to watch all of them and keep your money where it belongs and keep you out of trouble. Then you can live care free, with no money worries and no drama. Life plan? You bet!

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I once had a lottery winner of just over $600 and it had to be claimed at their office.

I asked specifically how I should make a claim if I had a "big" winner.

They will pay to whomever is named on the back of the ticket, but only one name is allowed.

So much for anonymity.

If a trust is on the back, it will be paid to the trust.

There is an IRS form (5754) used to spread the tax liability around if you're part of a pool.

 

My advice if you win the big one.

Do not sign the back of the ticket, but guard it with your life.

All the lottery poobahs say to immediately sign it, but that's just so they

can use you for publicity. 

Do not tell anyone!

Find a trusted and reputable tax/trust atty. and, once you've agreed on the fee,

have him/her claim the prize in the name of your trust.

Remember, anonymity is your friend.

Lastly, I leave you with the saying my old neighbor used to tell me;

"I hope you win and that you can't take a shit until you give me half".

 

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I bought a ticket today to marginally increase my odds from zero.

The good news is that I now have better odds of being hit by lightning whilst drowning than winning the powerball drawing.  I think previously, my odds were equivalent of being attacked by a great white shark whilst being struck by lightening... I feel so much better now. :-)

Edited by Riggo
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7 minutes ago, Riggo said:

I bought a ticket today to marginally increase my odds from zero.

The good news is that I now have better odds of being hit by lightning whilst drowning than winning the powerball drawing.  I think previously, my odds were equivalent of being attacked by a great white shark whilst being struck by lightening while in the desert on a cloudless day. I feel so much better now. :-)

There... I fixed it for ya.

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1 hour ago, bd5671 said:

Colorado allows to to designate a beneficiary to receive the rest of the lottery money you would receive, after you die. Form a perpetual trust, create a corporation, appoint an administrator/ trustee to manage the trust, and take annual/ monthly payments from the trust. Find a reputable tax attorney/ CPA to pay your taxes, a proven investments counselor to invest your money wisely and safely,  and an estate planner to set up a living will, manage your estate, and provide for your health and welfare should you become infirm or incapacitated. Hire a personal attorney to watch all of them and keep your money where it belongs and keep you out of trouble. Then you can live care free, with no money worries and no drama. Life plan? You bet!

If you noticed,  I corrected myself 2 post later.   ;)

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I would hire a tax attorney and an accountant. Set up a blind trust. Remain anonymous and walk out the front door of my day job with mistletoe on the back of my Levis. Set up my children as beneficiaries of the trust and my tax attorney as the Trustee as I live off modest monthly payments I'd require for my trips to Thailand and Las Vegas for binge hobbying. 

We can all dream, can't we?

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