I have won the lottery: Now what?

if you hate your job, quit it. I would say that even if you didn't win the lottery. since you did win you have all the more reason to quit and get or CREATE a job you like. life is too @#^$#% short to spend your daylight hours in a place so depressing.

[quote]Way Way Way off wrote:

WHOA.

Seriously, get a good financial consultant.

The last thing you need to do is pay someone to invest your money for you...surest way to get taken off.

$6.4 million minus fed and state taxes should leave you with @ $4 million. Pay off your debts leaves $3.7 million. This is plenty to quit your jobs and do something you like. Stay away from paid financial consultants

Flagpole -- in what hyear are you living where the tax rate is 50%? My God.

my wife work as a reg rep series 7

im not a toal expert but spent enough tmie around this and in my own work to have some above averge knowledge -?

a financial planner not bad idea - most assett based arudn 1% - attorneys will rape you - be careful of anyone that want to 'manage yur money' they dont do any of the investments just pump the money to another monety manger and both take a %

get 2nd and 3rd opions about any big investments risky greedy unscupolus invetors want to dump your $ into worst investments cuas ethey come with biggest comminsion for them.

also flagpole... I have a running buddy ex vp who turned me onto this stock 'MPV' seems very stable been patying a 7% dividend...check it out

The New UncleB wrote:

Flagpole -- in what hyear are you living where the tax rate is 50%? My God.

Just being conservative.

Some things are not right.1) They didn't say it was $6 million AFTER taxes...at least I didn't see that.2) I was using $3.2 million (conservatively) as what they would be able to draw from. If they take the recommended 4%, that's $128,000 a year, which is about a third again what they were making (a little more than that if you count what they were taking home though). BUT, it's not 4 times as much.3) Now, they COULD decide that she's going to live until she's 90 (about 40 more years) and he's going to live also 40 more years, into his mid 80s. If you decide to divide $3.2 million by 40, then they get just $80,000 per year, but of course, that money would earn value over that time, so that's really not a good figure.

Flagpole wrote:

The New UncleB wrote:

Flagpole -- in what [year] are you living where the tax rate is 50%? My God.

Just being conservative.

Anybody who *doesn't* think that US tax rates are going to 50% (for some, at least)--and relatively soon--hasn't been paying attention. (Or, if the rates don't go there, the government will go broke.) As more Baby Boomers retire, their limited number of children and grandchildren will have to pay the ever-mounting bills. And that means taxation.

[Full disclosure: I, too, am a BB. But I can't afford to retire before ~2030, at which point I don't think the support system will be there for me anyway...]

In any case, during my lifetime the top (marginal) US tax rate was 92%. There's nothing in principle to keep it from getting up there again.

In any case, a NYC resident who makes decent (not great) bank is currently depressingly close to paying 50%.

Junk Master wrote:

Just get your mileage over 100 a week and the rest will take care of itself.

Sorry, but I thought this was good.

Come

What to do? wrote:

The 6.4 million is after taxes. We live in the western region but really want to move back east to NJ. Its home and we miss it.

Come back to Jersey and we'll just run all the time, man. Go bowling, fun dinners, and you bring the wine! :)

I would continue to work or consider a part time job doing something that you enjoy. You are too young to quit working. Pay off your debt and invest the money into investments that will produce income for you (Bonds, Stocks,etc.)Get aquainted with a good financial advisor.I am in a similar situation except I made my money. I have 7 mil in the bank and some real estate . In my 50's and still go to work every day for a few hours because I want too.I Have no debt and get everything I want( Buy lots of running shoes).I still live below my means. Anyway congratulations and go slow and have some fun but not too much.

Here is something else wrote:

ukathleticscoach wrote:

Why is anybody giving this jerk off of a troll advice?

Are you really this gullible!

If he wasn't fake there is even less reason

^^^ Once again proving that your ability to get angry far exceeds your ability to think clearly.

What is not clear that this being a troll?

You are right about one thing though wankers like you do make me angry. People go on this site to argue maybe you are also to stupid to work that out? Now fake a calm response- jerk off

Flagpole wrote:

The New UncleB wrote:

Flagpole -- in what hyear are you living where the tax rate is 50%? My God.

Just being conservative.

No. Being inaccurate. When making importamt financial decisions, accuracy is important

First, don't overcommit. Many lottery winners give a lot away to family and friends and don't leave enough for the long haul. Don't buy expensive things that lead to more long-term costs (for example, a large boat, which has maintenance, taxes, repairs, etc. that go along with it).

Having said that, consider using some funds to support organizations and causes you support. Be sure to invest some money aggressively but leave a large chunk in more conservative, low interest accounts that will always be there when you need it.

[quote]formerly present wrote:

"Anybody who *doesn't* think that US tax rates are going to 50% (for some, at least)--and relatively soon--hasn't been paying attention".

Even if true (and it seems more likely that the "Bush tax cuts will not be allowed to expire any time soon), this is completely immaterial to a pay-out taking place today.

"In any case, a NYC resident who makes decent (not great) bank is currently depressingly close to paying 50%." This is nonsense. US tax rate on the first $379,150 of AGI is @ 28%. Above that it is 35%. NY state tax is @ 6%. Someone making $200k -- a decent living -- is paying maybe 30% -- far from 50%

I'm sorry to be the one to tell you, but this lottery prize will not make you happy. It is much more likely to make you unhappy.

If I had the misfortune to win the lottery, I would not take the lump sum payment. Taking an annual payment for 20 years would be much less stressful and would make your financial planning much easier.

If you've already taken the lump sum, consider paying off your debts and then giving the rest of it away.

Few people truly benefit from sudden wealth.

My wife and I make about the same amount in our jobs (99K this year). I can tell ya if we had no mortage or student loans or cc debt (wife got a little spendy first couple years), and all we had to pay was cable, water, etc (which amout s to like $500 a month, we would be able to live a VERY comfortable life. shoot, it would be close to 5k a month in play around money. nice vacation in spring and winter, and live normally ( just with better food), maybe a new toy every year.

Maybe im wrong here but i feel my life is rather comfortable as is, man put the money in the bank and life off a savings account interest would be enough for me. (6 mil at 1% is 60k yes?). Just go to the bank and withdraw 5k on the first of each month- money left over on the last day of month put in a jar for vacation fund.

just my take - obviously not the most opportune way tomake my money work for me, but hey it would work just fine.

I'd take the 20-yr payout and just vanish...like the Cheshire Cat, just leave a disembodied smile in the air.

My wife and I have a net worth about equal to your after tax winnings. Let me tell, it isn't that much money. The one thing you do not want to do is put a large chunk in ANY investment or with ANY investment manager. No matter how stable the investment appears to be, things go funny. Ask Bernie Madoff.

You do not identify the state in which you won the lottery. Is there ANY chance that your state could go bankruptcy (even if it does not need to in order to break some labor contracts)? If so, you do not want your lottery payments being discharged in bankruptcy. In other words, take the lump sum unless you and your wife are not people capable of discipline.

I am in my late 50s. I still work because my wife and I like our life style and living off the earnings on $4M does not cut it.

buy a gun(s)

take classes on how to properly use it

invest wisely

start your own coaching/training/running group

help out those who have helped you

smile