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Mega Millions $640 Million

  • Pick6
    got you, wasnt think of time value.
  • DeyDurkie5
    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
    DeyDurkie5;1131930 wrote:this is just not true
    you sure? i was under the impression the payouts stop if you die and you can't leave them to anyone
  • Raw Dawgin' it
    sleeper;1131915 wrote:It would be absolutely retarded to take the payments over 25 years.
    agreed
  • sleeper
    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 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.
  • LJ
    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.
    Hell, I think you should fuck off!
  • DeyDurkie5
    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
    from their site...

    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 Wear Pants
    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>
    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
    IWP, never go into financial modeling. That may be one of the worst I've ever seen.
  • gut
    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.

    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.
  • gut
    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.
  • sleeper
    I'm well aware you understand. Besides Con_Alma you are probably the smartest person on these forums.
  • Devils Advocate
    DeyDurkie5;1131804 wrote:Let's all agree that if somoene on this thread wins, everyone who posted gets 10,000$
    I already promised an IPAD3 to all who gave me reps when I win....

    Click away while you still have time :)
  • queencitybuckeye
    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
    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.
  • sleeper
    I leveraged most of it in my calculations and ended up with $24 billion dollars over 25 years.
  • justincredible
    If I won I'd get it all in coins and swim in it like Scrooge McDuck.
  • gut
    justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.
    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.
  • LJ
    justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.

  • Scarlet_Buckeye
    justincredible;1132012 wrote:If I won I'd get it all in coins and swim in it like Scrooge McDuck.
    Reps.
  • justincredible
    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.
    Ha, not a bad idea. It wouldn't even need to be $25m. I could hide $500k and get the same effect.
  • chicago510
    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.
    Then you could post clues to its whereabouts on the Chatterz and attract millions of hits. Talk about 2 birds one stone.
  • justincredible
    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.
    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.
  • gut
    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.
    You'd probably have to pay out at least once to generate credibility. But I like the idea of only $500k instead of $25M!
  • thavoice
    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
    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.