PSA: Megamillions won by some lucky people in MD, Kansas, Illiinois

[Dr. Zaus]

Where these days can you find a 3% interest rate?

stock market: 100% I looked into it.

 

[gorcorps]

stock market: 100% I looked into it.

Yes, but he said "savings account with a guaranteed 3% interest". What savings account has interest that high?

Also... nothing in the stock market is guaranteed. Something can always happen.

 

[Eli]

Where these days can you find a 3% interest rate?

So put it into a 0.5% account and get a measly $100,000 per month.

It's a ridiculous amount of money no matter how you look at it.

 

[zzuupp]

Where these days can you find a 3% interest rate?

30 yr T-Bill

 

[Dr. Zaus]

30 yr T-Bill

Yep that's at 3.3


I would get an I-Bond at 0% + inflation.

nothing is safer than that.


Except the stock market, 100% safe.

 

[DisgruntledVirus]

Where these days can you find a 3% interest rate?

This man brings up a good point.

You should bet it all on black.

 

[crownjules]

At this amount of money, taking the 20 year distribution is a serious consideration. Your talking about giving up $130 million dollars if you take the cash option.

 

[mrrman]

Id pay the tax and take the cash option...who cares...with that amount of $$$, I dont think Id miss it

 

[SillyOReilly]

At this amount of money, taking the 20 year distribution is a serious consideration. Your talking about giving up $130 million dollars if you take the cash option.

You are?

Id pay the tax and take the cash option...who cares...with that amount of $$$, I dont think Id miss it

You won't?

 

[conehead433]

At this amount of money, taking the 20 year distribution is a serious consideration. Your talking about giving up $130 million dollars if you take the cash option.

There's a very good reason for taking the cash option. You can't will future lottery winnings to your family or friends. If you should die for whatever reason at any time during the payout, the lottery quits paying. You may give up a considerable amount initially, but if you set up a living trust at least you can delay or lessen the amount of taxes you pay.

 

[Beev]

There's a very good reason for taking the cash option. You can't will future lottery winnings to your family or friends. If you should die for whatever reason at any time during the payout, the lottery quits paying. You may give up a considerable amount initially, but if you set up a living trust at least you can delay or lessen the amount of taxes you pay.

Who told you that?

From Mega Millions own website:

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.

 

[Schfifty Five]

At this amount of money, taking the 20 year distribution is a serious consideration. Your talking about giving up $130 million dollars if you take the cash option.

You're not really "giving up" $130M.

Look up "time value of money".

The cash option is essentially the present value of the jackpot 26 years from now.

If you were good at investing, you could end up with more than the jackpot value at the end of 26 years.

 

[Dari]

Are they calculating the interest rate as 1.29% over 26 years? That is what I got when I used the simple calculation of 341*(1+i)^26=476.
If so isn't that considered low? Then again, that would be good for people who want the cash option. But if you think about it they're most likely increasing the amount of winnings by what is added to the pot today not the future. Something may be up...

 

[gorcorps]

30 yr T-Bill

Again... you guys aren't getting it. He said you can get a guaranteed 3% from a savings account, which is about as fluid as you could ask your money to be without it being in cash under your mattress. Of course you can get 3% or more in these other ways, but they aren't nearly as fluid as a simple bank account. If he knows where to get 3% in that fluid of an account I want to know.

Also, I thought t-bills were short term? Like a year or less? I thought only bonds went 30 years. Though I'm not well informed on such matters so I may be wrong.

 

[mnewsham]

Again... you guys aren't getting it. He said you can get a guaranteed 3% from a savings account, which is about as fluid as you could ask your money to be without it being in cash under your mattress. Of course you can get 3% or more in these other ways, but they aren't nearly as fluid as a simple bank account. If he knows where to get 3% in that fluid of an account I want to know.

Also, I thought t-bills were short term? Like a year or less? I thought only bonds went 30 years. Though I'm not well informed on such matters so I may be wrong.

T-bill is less then a year T-note is more then a year less than 10 T-bond is more then 10 up to 30.

 

[rcpratt]

When the "interest rate" assumed in calculating the annuity amount is something like 1.3% percent right now, it would be absolutely moronic not to take the cash option.

Although you'd probably survive either way.

 

[zinfamous]

I would spend it all and buy 1% of APPL

 

[SillyOReilly]

Hey guys, I just won $218,922,000 free and clear because I won in NJ. How do I get the best interest rate so I can live off this money for the rest of my life?

NJ.... 10.8% tax?
Fuck that.

NY 8.97.

I need to GTFO

 

[zinfamous]

Hey guys, I just won $218,922,000 free and clear because I won in NJ. How do I get the best interest rate so I can live off this money for the rest of my life?

NJ.... 10.8% tax?
Fuck that.

NY 8.97.

I need to GTFO

Wyoming?

 

[ElFenix]

that number looks big but after cash option and taxes you still wouldn't get 1/10 of the dodgers. mccourt really won the lottery.

 

[SillyOReilly]

Wyoming?

Looks nice, but there's no mega millions in Wyoming.

http://www.usamega.com/mega-millions-jackpot.asp

 

[Dr. Zaus]

TExAS

 

[zinfamous]

Looks nice, but there's no mega millions in Wyoming.

http://www.usamega.com/mega-millions-jackpot.asp

CA: no state tax on lotto prizes!

lol. of all places.

 

[Bird222]

You're not really "giving up" $130M.

Look up "time value of money".

The cash option is essentially the present value of the jackpot 26 years from now.

If you were good at investing, you could end up with more than the jackpot value at the end of 26 years.

This. But I do question what the discount rate is they are using. Do they divulge that information? Can you challenge it?

 

[terry107]

This. But I do question what the discount rate is they are using. Do they divulge that information? Can you challenge it?

Rough calculation puts the rate at 1.3%.