Hey Marlow MEGA MILLIONS' is now at $82.8 MIL

[Jack Slocombe]

Mega is actually up to $133 MM.

http://www.galottery.com/stc/home/index.jsp

Thats the 26 equal, annual payment award. If you select the cash payout you get a one time payout of $82.8 million. At 68, gimme the one time payout.

[lonewolf]

That would be a delightful dilemma but you might want to do a little arithmatic. before you decide.

Assume 50% First year Tax, 5% Annual Interest, 30% tax on interest.

If you can squeeze by on $1 mill/year, in 26 years the $82.5 lump sump will be worth about $56 mill.

If you take the $5,115,384/ year payout, draw $1 mill/year, re-invest balance at 5%, pay 30% tax on interest,, in 26 years your stash will be worth about $225 mill.

In nine years the accrued value of the $5 mill/year payout will equal the 26 year value of the lump sum payment

In both cases you will have enjoyed $26 mill, tax paid walking around money.

You might have to delay purchase of the Lear a year but in the meantime, you can fly first class

[Marlow]

Fuggegaboudit - I'm blowing the whole lump sum on broads, booze, and blow (cocaine)!! :twisted:

[lonewolf]

Fuggegaboudit - I'm blowing the whole lump sum on broads, booze, and blow (cocaine)!! :twisted:

Wow! That leaves a lot left over for blow for a monogamous married teetotaler. :shock:

[Marlow]

Wow! That leaves a lot left over for blow for a monogamous married teetotaler. :shock:

Oh wait a minute. Does that mean I have to sniff stuff up my nose? Ugh - no way! :x
OK, I'll invest in this little niche magazine I know about - "Track & something something". I'll think of the name in a little bit.

[Jack Slocombe]

Lonewolf, here are the facts. Max fed tax rate is 35%. No state tax on winnings in Calif.

Lump sum net is $53,874,640. From that deduct the learjet and Marlows early retirement (appx $16 mil) and invest the rest at 4%. After paying fed and state taxes on the interest, I can live on a net $1.5 mil per year and in 25 years, at age 92, I still have $15.7 mil in the bank, works for me.

If I take the 26 annual payments, I still pay 35% to the feds, netting me $3.2 per year which means payments on the Lear....nonononononono.

I'll take it up front thank you. BTW, I have no heirs to worry about, so I get the whole damn thing.

[Marlow]

I have no heirs to worry about, so I get the whole damn thing.

except for my cut, of course . . .

[Jack Slocombe]

I have no heirs to worry about, so I get the whole damn thing.

except for my cut, of course . . .

OK son.

[tandfman]

Mega is actually up to $133 MM.

http://www.galottery.com/stc/home/index.jsp

Thats the 26 equal, annual payment award. If you select the cash payout you get a one time payout of $82.8 million. At 68, gimme the one time payout.

To me, the annual payments have always made more sense. Defers the taxes, may avoid some double taxation and, perhaps most importantly, relieves me of most investment management decisions. I don't think I can do as well with the income from the after-tax one-time payout than I can with the annual income.

[lonewolf]

Results may vary. My very rough estimates are subject to audit and tax facts.

I suspect the lottery system did not calculate the alternatives on the back of an envelope and if the lump sum payout did not favor the system it would not be an option.
The flip side is they will be paying with inflated dollars. Getting too complicated.

As I said, delightful dilemma. To each his own.

[williamwindhamjr]

I would build a track and field dome.It could be used for indoor and outdoor. :P

[lonewolf]

I would build a track and field dome.It could be used for indoor and outdoor. :P

Generous thought but if the reported costs for some recent sports palaces are valid, you would have to "poor boy" it to have enough money under either payout.

[Jack Slocombe]

Update for Marlow. Just determined that our little airport here in Groveland is too short for the Learjet 60. The Lear has a T.O. balanced field length requirement of 5200ft and the Pine Mountain Lake airport is only 3600ft, so keep your eyes peeled for a new Beechcraft King Air BE-200 Colors will be white with red and blue trim.

Just a heads up.

[Marlow]

Just a heads up.

T'anx! I will recalibrate my sensor array.

[Jack Slocombe]

Tonights' the night. When you read the ticket was purchased at the Valero service station in Oakdale, Cal, you know it was the big guy hittin it big. I will be off-line for a bit as there is soooo much paperwork to do, accounts to be set up, salesmen to talk to, investments made, pilots to hire and of course time to sober up from the party in the penthouse suite at the Top of the Mark in San Francisco.

Our net proceeds of $53,820,000.00 is pretty impressive but I want you to know, I will still continue to be the humble, soft spoken, moderate person you have come to know. Hahahahahahahahahahahahahahahahahahahahahahahahaha hahahaha!