Pick6
Posts: 14,946
Mar 30, 2012 1:14pm
got you, wasnt think of time value.sleeper;1131923 wrote:http://en.wikipedia.org/wiki/Time_value_of_money
DeyDurkie5
Posts: 11,324
Mar 30, 2012 1:14pm
Raw Dawgin' it;1131909 wrote:assuming you make it 25 years... if you die you can't leave it to anyone
this is just not true
Raw Dawgin' it
Posts: 11,466
Mar 30, 2012 1:15pm
you sure? i was under the impression the payouts stop if you die and you can't leave them to anyoneDeyDurkie5;1131930 wrote:this is just not true
Raw Dawgin' it
Posts: 11,466
Mar 30, 2012 1:16pm
agreedsleeper;1131915 wrote:It would be absolutely retarded to take the payments over 25 years.
sleeper
Posts: 27,879
Mar 30, 2012 1:17pm
LJ is our resident lotto expert. He probably use to work there and/or knows someone the inside. Hell, he might even know the winning numbers for tonight if you ask him.Raw Dawgin' it;1131933 wrote:you sure? i was under the impression the payouts stop if you die and you can't leave them to anyone
LJ
Posts: 16,351
Mar 30, 2012 1:17pm
Hell, I think you should fuck off!sleeper;1131937 wrote:LJ is our resident lotto expert. He probably use to work there and/or knows someone the inside. Hell, he might even know the winning numbers for tonight if you ask him.
DeyDurkie5
Posts: 11,324
Mar 30, 2012 1:19pm
from their site...Raw Dawgin' it;1131933 wrote:you sure? i was under the impression the payouts stop if you die and you can't leave them to anyone
9. What happens to Mega Millions payments if the winner dies before collecting? If a winner dies before receiving all annual payments, Mega Millions will continue to pay the annual payments, as scheduled, to the winner's designated beneficiary or to the winner's estate.
I
I Wear Pants
Posts: 16,223
Mar 30, 2012 1:37pm
gut;1131888 wrote:Lump-sum of $462M!!!! And after taxes, probably like $315M.
I'd almost rather take installments - it's not really the financially savvy choice, but $25.6M a year for 25 years is pretty cool
| <big></big> | ||||
 |
||||
|
$462,000,000 | |||
|
Lump-sum cash: $462,000,000 | |||
|
- $115,500,000 | |||
|
[HR][/HR]$346,500,000 |
| [HR][/HR] | ||||
|
- $27,720,000 | |||
| Your net per year: $16,984,616 | Your net payout: $318,780,000 | |||
| After 26 payments: $441,600,016 |
sleeper
Posts: 27,879
Mar 30, 2012 1:39pm
IWP, never go into financial modeling. That may be one of the worst I've ever seen.
G
gut
Posts: 15,058
Mar 30, 2012 1:41pm
Yeah, I understand that...I only mentioned the 25yrs to put into context just what a ridiculous sum that is. Plus it'd be cool to get a $25M check from the govt every year.sleeper;1131923 wrote:http://en.wikipedia.org/wiki/Time_value_of_money
The real risk being overlooked in that is, aside from rampant inflation crushing the value of those future payments, given the huge debt burdens of many states I wonder what the chance of default on those payments is?
But I assume it goes into a trust or bond (and that's where they come up with the $462M, which is what it would cost them to purchase the $640M annuity for the 25 years). Still doesn't make sense to me because that's an IRR of like 1.3%. In reality, the PV of $640M should be considerably lower than $462M, even at a very modest 3-4% rate. 0% fed funds rate certainly affects that as that's a much higher percentage payout then we've seen in the past.
G
gut
Posts: 15,058
Mar 30, 2012 1:45pm
Why is there only 25% federal tax when the highest marginal rate is 34%(?)
So lotto payments are capped at a 25% federal rate? As stupid as it is comical. I guess since they didn't make their money from "greed"(???) off the backs of hard-working Americans they don't get gouged as much.
So lotto payments are capped at a 25% federal rate? As stupid as it is comical. I guess since they didn't make their money from "greed"(???) off the backs of hard-working Americans they don't get gouged as much.
sleeper
Posts: 27,879
Mar 30, 2012 1:51pm
I'm well aware you understand. Besides Con_Alma you are probably the smartest person on these forums.
Devils Advocate
Posts: 4,539
Mar 30, 2012 1:56pm
I already promised an IPAD3 to all who gave me reps when I win....DeyDurkie5;1131804 wrote:Let's all agree that if somoene on this thread wins, everyone who posted gets 10,000$
Click away while you still have time
Q
queencitybuckeye
Posts: 7,117
Mar 30, 2012 1:57pm
Unless you're planning on spending every dime as soon as you get it, you're kind of missing a big part of the calculation (return on the money you invest). I did an analysis based on the assumption of spending $3 million per year and investing the rest. The lump sum "won" by several hundred million over the 26 years.I Wear Pants;1131971 wrote:
<big></big>
Mega Millions Jackpot for Fri, Mar 30, 2012 $640,000,000 $462,000,000
Gross Prize 26 annual payments of $24,615,385 Lump-sum cash: $462,000,000
- 25% Federal Tax - $6,153,846 - $115,500,000
Subtotal [HR][/HR]$18,461,539 [HR][/HR]$346,500,000
[HR][/HR]
Ohio: 6% State Tax - $1,476,923 - $27,720,000 Your net per year: $16,984,616 Your net payout: $318,780,000 After 26 payments: $441,600,016
sleeper
Posts: 27,879
Mar 30, 2012 2:02pm
I leveraged most of it in my calculations and ended up with $24 billion dollars over 25 years.
justincredible
Posts: 32,056
Mar 30, 2012 2:03pm
If I won I'd get it all in coins and swim in it like Scrooge McDuck.
G
gut
Posts: 15,058
Mar 30, 2012 2:06pm
You could hide/bury $25M somewhere in the US. Then amass the largest twitter following history will ever know dropping occasional hints to the whereabouts....Hey, I think we just found a way to drive more traffic to this site! Heck, with all the ad revenue you'd get you might even make money on that deal.justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.
LJ
Posts: 16,351
Mar 30, 2012 2:08pm
justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.
Scarlet_Buckeye
Posts: 5,264
Mar 30, 2012 2:08pm
Reps.justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.
justincredible
Posts: 32,056
Mar 30, 2012 2:15pm
Ha, not a bad idea. It wouldn't even need to be $25m. I could hide $500k and get the same effect.gut;1132015 wrote:You could hide/bury $25M somewhere in the US. Then amass the largest twitter following history will ever know dropping occasional hints to the whereabouts....Hey, I think we just found a way to drive more traffic to this site! Heck, with all the ad revenue you'd get you might even make money on that deal.
chicago510
Posts: 5,728
Mar 30, 2012 2:18pm
Then you could post clues to its whereabouts on the Chatterz and attract millions of hits. Talk about 2 birds one stone.justincredible;1132028 wrote:Ha, not a bad idea. It wouldn't even need to be $25m. I could hide $500k and get the same effect.
justincredible
Posts: 32,056
Mar 30, 2012 2:19pm
Yeah, I'd make back the $500k in no time. Hell, maybe I'll just pretend I've hid something valuable somewhere and post it here.chicago510;1132029 wrote:Then you could post clues to its whereabouts on the Chatterz and attract millions of hits. Talk about 2 birds one stone.
G
gut
Posts: 15,058
Mar 30, 2012 2:24pm
You'd probably have to pay out at least once to generate credibility. But I like the idea of only $500k instead of $25M!justincredible;1132031 wrote:Yeah, I'd make back the $500k in no time. Hell, maybe I'll just pretend I've hid something valuable somewhere and post it here.
T
thavoice
Posts: 14,376
Mar 30, 2012 2:26pm
justincredible;1132031 wrote:Yeah, I'd make back the $500k in no time. Hell, maybe I'll just pretend I've hid something valuable somewhere and post it here.
I think ya should hide it in a hayfield up near Celina. You know where Celina is?
Well, there's... there's a lot of hayfields up there. There is
One in particular. It's got a long rock wall with a big oak tree at the north end. It's like something out of a Robert Frost poem. It's where I asked my wife to marry me. We went there for a picnic and made love under that oak and I asked and she said yes. Promise me, Red. If you ever get out... find that spot. At the base of that wall, you'll find a rock that has no earthly business in a Maine hayfield. Piece of black, volcanic glass.
justincredible
Posts: 32,056
Mar 30, 2012 2:36pm
gut;1132032 wrote:You'd probably have to pay out at least once to generate credibility. But I like the idea of only $500k instead of $25M!
Good point. Do a bunch of smaller hunts. Like $5-10k each.