Conversion accurate at time of posting. Native amount won: $US 340 Million.

News Report.

Damm....

It's not that much when you think about it really.

I wish that was me

not much, you could probably buy a small island, but only a small one.

wouldn't they take almost 1/2 of it away as taxes there?

You could probably buy a big chunk of cuba or jamacia. heh.

nearly half a billion not much Rev? share the weed man.

Yep. Generally in USA you get gyp'd (I don't know how to spell that so cop it sweet) out of MOST of the money if you take it all in one sum, and a large chunk of it still if you get it paid in instalments.

still better than a kick in the nuts

The lump sum option would be worth $110 million after taxes.

That's a gip alright.

Did a little digging, and it turns out that in the US, lotteries are run by "private" not-for-profit organisations that turn all their profits over to the government of the state that has licensed them. All state lotteries are affiliated with the US Multi State Lottery association which runs nationwide lotteries (like powerball) on their behalf.

So lotteries in the US (similarly to many other places around the world) are effectively voluntary extra tax, where the government gives you the chance to win a large amount of money if you agree to pay.

The point of all this, and what I find funny is, if you do happen to win, the government takes 70% of the prize (an incentive to pay extra tax) as compulsory taxes...

And people say the GST on fuel is a complicated tax on a tax on a tax

Whoa. That's a lot of tax. Still, the winner could throw it in the bank and make over 5million a year in interest. I'm sure that's better than his current salary :/

Regardless of the big chunk of tax... I definately wouldn't scoff at it.

$110milUS? I will have it

they do the same in australia but they dont tell you about it you just win the money after all the tax has been paid


you would never haveto work again just stick the 110mil in da bank on 5%pa interest and that would be 4mil a yeah so then tax take 1mil of that then you only get 3mil a year for you and as long as you leave that money in the bank.

If I won that kinda money, I'd put some serious dough into starting an alternative energy research company

you would never haveto work again just stick the 110mil in da bank on 5%pa interest and that would be 4mil a yeah so then tax take 1mil of that then you only get 3mil a year for you and as long as you leave that money in the bank.

Yeah, putting 110mil into a 5% bank account would be the best way to invest it.

$US 340 mil. $US110 mil atfer tax or 30 annual instalments of $US 7.6 mil. $US 228 mil.

Hmmmm think i could live on 7.6 mil. US p/a

nice sinky i like your style

wtf is with the 70% tax!? That's crazy.
Anyway. Simple interest at 5.4% on $7.6/million is $410,000. Yowzers.
I'd be taking the 228mil - what the hell can you do with $110m that you can't do with $8mil... aside from, oh I dunno, buy an island?

If I won that kinda money, I'd put some serious dough into starting an alternative energy research company

Stop being such a nerd Wet!

8-)

I'd do some serious partying and since I don't/wont have kids I could spend it all and die happy.

yeah, lets all go islands to use up some rediculous amount of money (110 000 000) just because we can

i dont really see the point in buying an island when you would still have to pay more to keep it, its real estate, not yours you just have the deed, how do you see any use in having an island when you'd need to do a lot more to it to make it useful (do all these small islands give income that i dont know about?)
also i know theres a few things wrong with this so please, only one one person flame it, cause i can hardly keep up with everyones postings

Two chicks at the same time

^ hahaha, gold O.S!

last edited by Astroboy at 11:52:35 21/Oct/05

it's not 70% tax it's like ~30% fed tax and ~6% state tax. powerball gives you the choice of two jackpot prizes: an annuity or a lump sum. they advertise the size of the annuity because it's larger. :) Another interesting thing is that without tax the players expectation is positive (around 140%). But with the tax it's around 99%.

lol where did you get $458.1 from :)

The winning numbers drawn Wednesday evening were 7, 21, 43, 44, 49 and 29. The winner can take the money in an after-tax lump sum of $110 million, or receive 30 annual installments of about $7.6 million

The tax dept took $110 million?? WTf, not too much?

Going by your quote, the government takes 230 US Million as tax from that 340 US. lol. 110 US M is still huge though. But then again, anyone with half a brain would take the 30 annual installments. Since 30 X 7.6 M = 228 M. :) And if you can't live on 7.6 Million dollars per year , then your F'ed in the head and should not be allowed around money. lol.

I wonder if there's some claus that if you die before the 30 years is up the Government gets the rest of the cash?

Hmmm.

8-/

anyone with half a brain would take the 30 annual installments. Since 30 X 7.6 M = 228 M. :) And if you can't live on 7.6 Million dollars per year , then your F'ed in the head and should not be allowed around money. lol.

f*** yeah, imagine getting a check for 7.6m every year for 30years. that would be so awesome.

anyone with half a brain would take the 30 annual installments

And someone with a whole brain would take the lump sum.

Sure, if you want a $118 M paycut.

Hey look at me i can multiply 7.6*30!

Yep it truly is that simple.
Forget about inflation, forget about compound interest, forget about everything else.

You should stick to selling simoleans and leave the real money to people with a clue.

last edited by Bah at 17:18:01 21/Oct/05

You still make less bah.

Working with simple interest
$110M in lump sum.
@ 5% simple interest you would get $5.5M/year. x30 = $165M. +$110 = $265M

$7.6M/year
@ 5% simple interest you would get $380 000/year. x30 = $11.4M. +$228M = 239.4M

I'd take the lump sum. Even if you spent every cent of that $5.5M/year, at the end of 30 years, you'd still have $110M in the bank. If you only spent $5.5M of the $7.6M each year and accumulated interest of the rest you would only have $66.15M at the end of it. Of course in both instances you would end up with much more using compound interest. The point is those of you who said you'd be a moron not to take the instalments didn't really think about it.

Don't ignore compounding monthly. At 10% over 30 years you end up with $2.2 billion or so. ING Direct will get you over $500 million over 30 years. (Ignoring the crazy spending sprees and the friendly tax man taking his cut every year).

one word.

Hookers

2 words

hookers and cocaine

Why doesn't the annual payment get taxed?

3 words.

nF sucks

When you have $110 million all women are hookers.

If I won that amount of money, I'd go buy a beige dildo, write my name on it in big black capital letters, hand it to my boss and tell him to GO f*** HIMSELF.

hahaha

yeah! great work

You still make less bah.

Oh, i'm sorry i didn't realise you did the real numbers but didnt bother to show them here because everyone is too stupid to know what they would mean.

Tax Rate(T): 1 - (7.6 * 30 / 340) = 33%
ROI (R): ?

fv of annuity is: 7.6 * (1 - (1 + R)^31)/(1 - (1 + R)) - 7.6
(assuming annuity is paid at the beginning of each interest period)

fv of lump sum is: 110*(1 + R)^30

lump sum at 6.1% ROI = $649.91 million
annuity at 6.1% ROI = $648.83 million

it works out that the break even point is ROI=6.1%. however, this is a bit simplistic and ignores the advantage of the annuity because you want to actually spend the money you earn, and when you do that you pay 33% tax.

one way of comparing is to remove the tax paid on the annuity so with $11.33 million tax free installments:

fv of annuity is: 11.33 * (1 - (1 + R)^31)/(1 - (1 + R)) - 11.33

now:

lump sum at 11% ROI = $2518.15 million
annuity at 11% ROI = $2503.68 million

so if you can get 11% or greater ROI then lump sum is better than annuity. i think lump sum should also be more attractive since you can spread the risk. it would suck if whoever generated the annuity went under.

EDIT:

and just to check. if you have an ROI of 11% and the lump sum you can set up an annuity to pay out 11.33 million or 7.6 million after tax for 30 years:

FV_0 = 110
FV_n = (FV_{n-1} - 11.33) * (1 + R)
FV_30 ~ $15.21 million

last edited by hast at 01:49:28 22/Oct/05

duhh sifnt lump sum, i could double the money in 1 hr.