Winning $370 Million
What would I do with $370 Million? Nothing, because you don't truly win 370 million. Taking the lump sum option (aka all the money now equal to the amount they would have to invest now to come up with the money in 26 years), that would get me about $220 million, minus 35% Federal Tax and 3.9% State Tax off that for a total of $137,423,000.
Now, 137 million is nothing to sneeze at, but it ain't exactly 370 million. Because of this, extravagant spending would certainly have to be curtailed. $250 million dollar super yachts? No. NFL, MLB, or NBA team? Yeah right. Sunday brunch at the Waldorf Astoria? Fat chance.
Ever hear of the people who say they'd just live on the interest? Let's assume a conservative 2% return on your money, as well as assume that you wait 1 year to take out any money to let your jackpot compound some interest to spend in the first place. That's 2,748,460 a year.
....actually, it's not. That interest is income, bitches. Government gets their cut. (And with this high profile windfall of money, don't you even DARE hiding any of this or face jail time). So, you actually now get an allowance of only $1,716,825 a year. Compared to that jackpot they are advertising for tonight, only winning 1.7 million a year from it is sort of a buzz kill.
Furthermore, say you live on that money until you die. Two problems arise: 1) You've got 137 million doing you nothing, and 2) 45% Estate tax. Most your dependents would receive would be $75,582,650. Say you live 40 years, 75 million then may be equivalent to 15 million today! What a jip.
So, no, I most certainly won't live on just the interest. It just isn't possible.
In my next post, I'll actually talk about what I'd do with the money.
Now, 137 million is nothing to sneeze at, but it ain't exactly 370 million. Because of this, extravagant spending would certainly have to be curtailed. $250 million dollar super yachts? No. NFL, MLB, or NBA team? Yeah right. Sunday brunch at the Waldorf Astoria? Fat chance.
Ever hear of the people who say they'd just live on the interest? Let's assume a conservative 2% return on your money, as well as assume that you wait 1 year to take out any money to let your jackpot compound some interest to spend in the first place. That's 2,748,460 a year.
....actually, it's not. That interest is income, bitches. Government gets their cut. (And with this high profile windfall of money, don't you even DARE hiding any of this or face jail time). So, you actually now get an allowance of only $1,716,825 a year. Compared to that jackpot they are advertising for tonight, only winning 1.7 million a year from it is sort of a buzz kill.
Furthermore, say you live on that money until you die. Two problems arise: 1) You've got 137 million doing you nothing, and 2) 45% Estate tax. Most your dependents would receive would be $75,582,650. Say you live 40 years, 75 million then may be equivalent to 15 million today! What a jip.
So, no, I most certainly won't live on just the interest. It just isn't possible.
In my next post, I'll actually talk about what I'd do with the money.