Edmunds Members - Cars and Conversations (Archived)

abacomike

I would take the cash, pay all the federal income taxes, and have about $350+ million free and clear.  I can't give my children large sums because of gift taxes, so I would set up a revocable living trust and have the trust buy me a few hundred acres of prime real estate and build a comfortable home with enough guest houses to comfortably house my entire family.

I would make the estate a working ranch that would pay them all a nice living wage - and I mean "nice" along with nice work vehicles.

But the very first thing I would do is hire a great law firm and financial advisors who will set everything up.

Now, tomorrow, when I don't win the lottery, I'll treat myself to a nice Chick-Fil-A lunch. 

roadburner

Rather than spend money on lotteries every year I usual drop a couple of hundred dollars on several reputable charitable car raffles; the odds are pretty decent and it goes to a good cause.

stever

I spent more on car raffles last year than lottery tickets. Just around $100....

driver100

"

dino001">Anything bigger than say $500K cash, I'd take in an annuity. Why give up all that money, considering such low interest rates.

Why give up all that money? Mainly because it is more than you can ever spend in your lifetime. Besides, a bird in the hand is worth two in the bush. I'd take what I can get now and get some good financial people to work out an annuity or even dividend/interest payments that would give me $200k to $1 million a year to live on.

If you do it this way, when pesky relatives and people who come out of the woodwork start hou nding you for money you can say you don't have access to it.

And that's another thing. Do you really want to lose all your friends and start over with new ones....ones who may be used to a very different lifestyle? I wouldn't want to move and I wouldn't want to lose the friends I have...I can see where winning a large amount could be a curse...but, then again.........

houdini1

Michaell said:

cdnpinhead said:

A lottery is proof that the vast majority of people either: 1) can't figure out math, or 2) buy into the concept that "you can't win if you don't play." You most assuredly can, by never playing.

Yeah, I know, party pooper.

For those of you who play golf, I saw an interesting comparison today. Turns out the odds of you getting a hole-in-one on two holes in the same round are better than winning the Powerball.

I've been playing golf since I was a kid and I've got one hole-in-one in all that time.

Looks like I am the hole-in-one champ with 3...but I am much older than you.

ab348

abacomike said:

I would take the cash, pay all the federal income taxes, and have about $350+ million free and clear.  I can't give my children large sums because of gift taxes, so I would set up a revocable living trust and have the trust buy me a few hundred acres of prime real estate and build a comfortable home with enough guest houses to comfortably house my entire family.

You left out the part about the few million you'd give to your forum friends here.

abacomike

ab348 said:

I would take the cash, pay all the federal income taxes, and have about $350+ million free and clear.  I can't give my children large sums because of gift taxes, so I would set up a revocable living trust and have the trust buy me a few hundred acres of prime real estate and build a comfortable home with enough guest houses to comfortably house my entire family.

You left out the part about the few million you'd give to your forum friends here.

I would share my good fortune with my poster buddies - TO A POINT!  

qbrozen

Someone once told me that you can dictate where your winnings go before you accept the winnings so you don't have to pay double taxes. In other words, if each relative is getting $5M, you just need to set that up ahead of time and the lottery commission pays them directly after all the taxes on the lump sum are deducted. I never bothered to look into it further because I will never have to worry about it, but he is an extremely knowledgeable fellow, so I have no reason to doubt him.

houdini1

I would take the cash and then do like a few well known politicians do. Set up a charitable trust in Canada, give 10% annually to charity, and then enjoy the other 90% tax free.

oldfarmer50

Anyone ever hear of an ultra low milage lease (5000-7500 miles per year)? How much could you save on monthly payments?

snakeweasel

abacomike said:

Michaell said:

abacomike said:

Michaell said:

abacomike said:

Just picked up my Powerball ticket - 5 sets of numbers, $10.00.  I waste that much on any given week on junk - this way I can feel a part of all the hysteria!  Good luck all! 

No state tax for you if you win!

No, just Federal income tax - 40+% of winnings.

Would you take the cash option or the annuity?

CASH!!! 

You might be better with the annuity. Most people who get the cash option blow through it very quickly, with the annuity payments are spread out over 30 years (increasing each year).

Either way don't spend a penny until you talk to a financial planner and make a plan.

BTW I should get back here more often, way to many posts since I was last here.

snakeweasel

Mr_Shiftright said:

Careful Mike....love dies, but cars are forever.

One word response to that "RUST".

snakeweasel

cdnpinhead said:

A lottery is proof that the vast majority of people either: 1) can't figure out math, or 2) buy into the concept that "you can't win if you don't play." You most assuredly can, by never playing.

Yeah, I know, party pooper.

Usually I am not a proponent of playing the lottery since the payoffs don't warrant the odds, but there is a point where a lottery does make sense to play a few bucks, especially if you would normally blow those few bucks on something rather pointless. I put in and bought a few tickets on y own and put in a couple of bucks on a pool at work. All and all I'll blow more money on a couple of beers at dinner.

When it was $900 million all of us in our department dropped $4 each and we bought 10 tickets and we actually ended up $2 ahead on the drawing, we just rolled it over to todays.

Tomorrow I am buying Ballist Key.

snakeweasel

Michaell said:

cdnpinhead said:

A lottery is proof that the vast majority of people either: 1) can't figure out math, or 2) buy into the concept that "you can't win if you don't play." You most assuredly can, by never playing.

Yeah, I know, party pooper.

For those of you who play golf, I saw an interesting comparison today. Turns out the odds of you getting a hole-in-one on two holes in the same round are better than winning the Powerball.

I've been playing golf since I was a kid and I've got one hole-in-one in all that time.

I can assure you that the odds of me winning the lottery is many times better than me making two holes in one in a row, or two in my lifetime, or even one, or even a hole in two.

driver100

abacomike said:

ab348 said:

abacomike said:

I would take the cash, pay all the federal income taxes, and have about $350+ million free and clear.  I can't give my children large sums because of gift taxes, so I would set up a revocable living trust and have the trust buy me a few hundred acres of prime real estate and build a comfortable home with enough guest houses to comfortably house my entire family.

You left out the part about the few million you'd give to your forum friends here.

I would share my good fortune with my poster buddies - TO A POINT!  

Buy each of us a Chick-a-Fil sandwhich!

snakeweasel

driver100 said:

CASH!!! 

Almost 100% of the winners take cash, and it probably makes sense to do it that way.

70% of the winners have lost all they won within 5 years.

Easy come easy go.

And yes, your chance of winning is almost impossible...much better chance of getting bitten by a shark, but, it is good to dream once in awhile and it is something to talk about. I told the guys at tennis if I am not there on Friday I am on my way to pick up my check.

One other stastic......with those odds, 290 million to one, it would be like flipping a coin and getting heads 58 times in a row.

It's a 288 trillion to one chance of getting heads 58 times in a row, 38 times in a row would be close to the odds of winning the lottery (one in 275 millions).

abacomike

Most important thing to do is hire a legal firm that has outstanding tax attorneys, trust attorneys and investment attorneys.  I would not know what to do first if I had 350 million dollars.  Like - where do you deposit $350 million?  You need professional advice and options!!! 

driver100

oldfarmer50 said:

Anyone ever hear of an ultra low milage lease (5000-7500 miles per year)? How much could you save on monthly payments?

Just a wild guess, (in case someone like Mike misses this one) but I doubt you would save a whole lot. Lease payment is based on the value of the car after 3 years (or lease term). How much more is an average mile car worth compared to low miles? How much more would you pay for a car with 18k miles on it compared to 36k?
The car is still 3 years old and that is by far the biggest factor.

imidazol97

abacomike said:

Now, tomorrow, when I don't win the lottery, I'll treat myself to a nice Chick-Fil-A lunch. 

Soon you'll be able to have kale salad at your Chick Fil A lunch. It's supposed to be healthy.
Replacing cole slaw on the menu. It tastes good with the brocolini and dried cherries the
way Chick Fil A has done it.

abacomike

driver100 said:

Anyone ever hear of an ultra low milage lease (5000-7500 miles per year)? How much could you save on monthly payments?

Just a wild guess, (in case someone like Mike misses this one) but I doubt you would save a whole lot. Lease payment is based on the value of the car after 3 years (or lease term). How much more is an average mile car worth compared to low miles? How much more would you pay for a car with 18k miles on it compared to 36k? The car is still 3 years old and that is by far the biggest factor.

I agree.  That's why 10,000 miles is the low mileage lease.  

snakeweasel

abacomike said:

Most important thing to do is hire a legal firm that has outstanding tax attorneys, trust attorneys and investment attorneys.  I would not know what to do first if I had 350 million dollars.  Like - where do you deposit $350 million?  You need professional advice and options!!! 

Actually if you were the only winner and took the lump sum payout you should be in the neighborhood of $500-$550 million after taxes.

abacomike

imidazol97 said:

Now, tomorrow, when I don't win the lottery, I'll treat myself to a nice Chick-Fil-A lunch. 

Soon you'll be able to have kale salad at your Chick Fil A lunch. It's supposed to be healthy. Replacing cole slaw on the menu. It tastes good with the brocolini and dried cherries the way Chick Fil A has done it.

I think that is nice, but I go to Chick-Fil-A for chicken, not "grass"!  If I want a nice salad, I'd go to "Soup 'N Salad".  I enjoy Chef Salads as well.  But chicken is best left to the pros - Chick-Fil-A. 

stever

You could almost buy a Senator or two or three Representatives with that kind of dough.

abacomike

snakeweasel said:

Most important thing to do is hire a legal firm that has outstanding tax attorneys, trust attorneys and investment attorneys.  I would not know what to do first if I had 350 million dollars.  Like - where do you deposit $350 million?  You need professional advice and options!!! 

Actually if you were the only winner and took the lump sum payout you should be in the neighborhood of $500-$550 million after taxes.

Better yet!  Still need professional advice and recommendations, and I'd be able to afford the best! 

snakeweasel

stickguy said:

I grew up in Rockland county. When I was little, I could climb a tree in my yard and see the Manhattan skyline. Yet people that grew up in "the city" considered us upstate (certainly the other end of the county!)

It's like that way here, growing up I lived within walking distance of the boarder of Chicago but if someone who lives in Chicago ever heard me say I was from Chicago this would be their reaction:

snakeweasel

abacomike said:

snakeweasel said:

abacomike said:

Most important thing to do is hire a legal firm that has outstanding tax attorneys, trust attorneys and investment attorneys.  I would not know what to do first if I had 350 million dollars.  Like - where do you deposit $350 million?  You need professional advice and options!!! 

Actually if you were the only winner and took the lump sum payout you should be in the neighborhood of $500-$550 million after taxes.

Better yet!  Still need professional advice and recommendations, and I'd be able to afford the best! 

True, if I win it I would sit on it for a couple of months making plans and getting expert advice before spending anything.

Mr_Shiftright

snakeweasel said:

Mr_Shiftright said:

Careful Mike....love dies, but cars are forever.

One word response to that "RUST".

love rusts? I never knew...

RE: lottery--I'm not sure I could live without a helicopter. I suppose I could get by.

stickguy

read or heard something this AM that said the best idea is the annuity in most cases. partly for the enforced savings, but also to not have to worry about investing it.

what really makes the decision is what discount rate they are applying to the LS payout (IOW, what interest rate is built into the annuity payment). I have never bothered to dig up the numbers and do the calculation (though I assume that Googlez knows!

abacomike

stickguy said:

read or heard something this AM that said the best idea is the annuity in most cases. partly for the enforced savings, but also to not have to worry about investing it. what really makes the decision is what discount rate they are applying to the LS payout (IOW, what interest rate is built into the annuity payment). I have never bothered to dig up the numbers and do the calculation (though I assume that Googlez knows!

I agree with driver on this.  500 million dollars is a lot of money.  I am 70 years old - I want control of the money.



Besides, taxes are going to increase - we have a deficit of 19 trillion dollars!  

imidazol97

abacomike said:

Besides, taxes are going to increase - we have a deficit of 19 trillion dollars!  

And increasing.

dino001

My other argument for the annuity on those huge payouts, is you can screw up, more than once, and next year money comes again, so you get a more than one chance to learn proper finances and leave things for the heirs.

stever

Tis better to give your kids money when they are first starting out even if it's only $5,000 or other "small" amount - by the time you croak and your kids are in their 60s, they really aren't as likely to need it.

That's what my Mom did, bless her. She's still not likely to die broke but the late in life medical bills are getting up there.

abacomike

dino001 said:

My other argument for the annuity on those huge payouts, is you can screw up, more than once, and next year money comes again, so you get a more than one chance to learn proper finances and leave things for the heirs.

Chances are 297 million to one that none of us are going to have to worry about that! 

abacomike

stever said:

Tis better to give your kids money when they are first starting out even if it's only $5,000 or other "small" amount - by the time you croak and your kids are in their 60s, they really aren't as likely to need it. That's what my Mom did, bless her. She's still not likely to die broke but the late in life medical bills are getting up there.

I give because it is necessary - and if I live to 80 (which is doubtful) I will give $11,000 a year to family because that is not taxed as a gift - over $12,000, it is taxable to the giver.

explorerx4

@abacomike,
14k now. I just gifted my sister 12.5 in December, just in case.

Mr_Shiftright

I just looked up the odds of being struck by lightning while drowning....STILL better than the lottery. (1 in 183 million). Now, if you were drowning and struck by lightning while being attacked by a shark......

explorerx4

...just as you get a hole in one.

abacomike

explorerx4 said:

@abacomike, 14k now. I just gifted my sister 12.5 in December, just in case.

Keeps going up.  Thanks for the info.  I try to gift as needed.  I send my son $100 a month to help him pay for his health insurance and during the year, quite a bit more.  But I have to be careful since I have health issues that will take chunks of cash in the future.  But I set aside CD's in trust for...and pray I never have to dip into that money to keep me alive - I would rather just die than see all that money spent on nurses, home care, assisted living, etc.

driver100

Don't give away too much....the stock market is tanking!

snakeweasel

stickguy said:

read or heard something this AM that said the best idea is the annuity in most cases. partly for the enforced savings, but also to not have to worry about investing it.

what really makes the decision is what discount rate they are applying to the LS payout (IOW, what interest rate is built into the annuity payment). I have never bothered to dig up the numbers and do the calculation (though I assume that Googlez knows!

I calculated it out today at 2.97%, thats based on a $1.5 billion prize with a lump sum option of $930 with an annuity paid out over 30 years with a 4% increase in the payment each year.

snakeweasel

abacomike said:

stever said:

Tis better to give your kids money when they are first starting out even if it's only $5,000 or other "small" amount - by the time you croak and your kids are in their 60s, they really aren't as likely to need it.

That's what my Mom did, bless her. She's still not likely to die broke but the late in life medical bills are getting up there.

I give because it is necessary - and if I live to 80 (which is doubtful) I will give $11,000 a year to family because that is not taxed as a gift - over $12,000, it is taxable to the giver.

Actually it's $13,000 per person per year that is tax free, so my wife and myself can give my daughter and her husband $52,000 tax free (my wife can give my daughter and her husband each $13K and so can I). In addition to that you have an additional lifetime exemption of just over $5 million. So you can give more than that $13K annual limit and not incur the tax as long as your lifetime excess doesn't exceed the $5+ million limit.

stickguy

3% sounds about right. This powerball amount throws it all out the window. I was thinking more about say a 40mill jackpot over 20 (I think megamillions is over 20 years). So 20mill now, or 2mill per for the next 20 years.

$20,000,000 seems like something that it would be easy for many people to pee away (mis invest combined with just blowing) too easily, and end up broke. But $2,000,000 a year is plenty to live on each year (it's own little windfall) and still have leftover.

nyccarguy

If you guys ever feel the need to gift $13K and are unsure who to gift it to, PM me for my contact information

abacomike

nyccarguy said:

If you guys ever feel the need to gift $13K and are unsure who to gift it to, PM me for my contact information

Don't worry, Bradd, you'll be fine in a few years.  When I was your age, I had a house with a mortgage at 8%, and 2 car payments and enough money in the bank to live 2 months if I lost my job.  After that, I would have gone on welfare.  

It takes time to get to where I am now and an inheritance or two! 

abacomike

Had my Condo appraised this afternoon.  If I listed it, I should ask $140,000 and expect $130,000 as the actual selling price.  So I have no mortgage and the family could sell it if something happens to me.  So at least they will have that.

stickguy

I am planning to give my kids the greatest gift of all, before we pass away.

we are going to move in with them!

My daughter is OK with it. I'll take care of her car, and she wants to get a herd of dogs, and needs someone to pick up all the poop.

abacomike

stickguy said:

I am planning to give my kids the greatest gift of all, before we pass away. we are going to move in with them! My daughter is OK with it. I'll take care of her car, and she wants to get a herd of dogs, and needs someone to pick up all the poop.

You mean "fertilizer", don't you?  Great for growing weed(s)! 

berri

Lotto, I'd go cash. What if the company holding your annuity goes BK before you collect it all? I know some annuities have insurance, but can it cover toward a billion bucks without folding too?

Powerball and Mega Millions - I limit myself to a pick or two. With those probabilities you could purchase 1000 picks and still be far out on the edge of the curve. 290M has a lot of exponent value!

berri

I was just thinking, I believe foreigners can buy those Lotto tickets over the web. Watch, someone from China will win it all. That will get our politicians all worked up. Blame it on Obama. No blame it on George W.

abacomike

Chick-Fil-A tomorrow !