When You Win PB or Mega Lottey

[twincyties]

I have always wondered, if you take the lump sum, you have a high rate of taxes, but can you donate that money instead of giving it to the government? Say give 100 million to ISU instead of giving that money as tax?

I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.

 

[alarson]

I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.

Not true for powerball. Your heirs inherit the remainder of the payouts.

 

[BCClone]

I have always wondered, if you take the lump sum, you have a high rate of taxes, but can you donate that money instead of giving it to the government? Say give 100 million to ISU instead of giving that money as tax?

Yes, yes you can. Like I mentioned prior, the Fed holds a flat 25% for taxes, and with 700 million you are definitely in the 37% bracket. Add in roughly 8% for state and you you could donate 100MM and that only costs you 55MM in winnings.

 

[BCClone]

I’m sure there are ways to reduce the tax liability - but you’re ending up with a lot “less” (relatively speaking, of course) than advertised.

My understanding is that it’s wise to take the lump sum because if you die the scheduled payout does not transfer to heirs.

They are supposed to be paid to the estate.

 

[cstrunk]

No winners last night. Mega Millions jackpot for this Friday is estimated to be $1.25B.

 

[Clonehomer]

No winners last night. Mega Millions jackpot for this Friday is estimated to be $1.25B.

Crap. I’m going to have a very uncomfortable conversation with several car dealerships and a realtor today. Might have jumped the gun a bit.

 

[FallOf81]

Crap. I’m going to have a very uncomfortable conversation with several car dealerships and a realtor today. Might have jumped the gun a bit.

Hey at least you didn't tell your boss to F off and shove this job on your way out the door yesterday ... like I did. This is going to be awkward today.

 

[cyclones500]

Hey at least you didn't tell your boss to F off and shove this job on your way out the door yesterday ... like I did. This is going to be awkward today.

 

[Isualum13]

Well Noone won last night so 1.5 billion now.

Also the iowa lottery is having a giveaway where you enter mega millions tickets, winners and/or losers for a chance to win single game iowa state ticket packages. So if you are buying a few because of the insane jackpot might as well enter them here too.

https://www.ialottery.com/Pages/Promotions/2023/CycloneFootball.aspx

 

[simply1]

Pretty sure I’m winning this time.

 

[Nelcyn]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

 

[Clark]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

Not sure it's still negative when the jackpot is this high but yes in general I agree

 

[HFCS]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

Agreed but it’s nothing compared to another scam a huge % of working class people have fell for since the early 80s.

At least with lottery there’s a chance the cash can go to a working class person.

 

[baller21]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

Odds are 1 in 302.6 million.

 

[FallOf81]

Odds are 1 in 300.26 million.

View attachment 115262

Well for $2 it's worth the fun to dream. After getting my ticket I don't check the winning numbers. I figure if the state is mentioned I bought it. Good start. If I drive past the location I purchased and there are 10 media trucks ... I better check. It's all fun!!

 

[Isualum13]

Pretty sure I’m winning this time.

Make sure you share.

 

[Isualum13]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

Thats why I don't buy tickets unless the jackpots get high enough that it's worth throwing away a few dollars for the chance.

 

[Spam]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

I am now going to go invest my 2 dollars into a savings account instead.

 

[baller21]

I am now going to go invest my 2 dollars into a savings account instead.

After investing for 40 years at 8% interest, your initial investment of $2 will have grown to $43.45.
You will have earned $41.45 in interest.

 

[cedarstrip]

Negative expected return with the lottery. You would never invest in a stock that has a negative expected return. It is just another way to tax the poor.

I don't think this is true when the jackpot is this high. If you bought every combination AND there was only one winner you would come out ahead. I'm buying a few tickets and I won't feel stupid.