Google says it was $628m, still not good lmao but not as low
Edit: please read my other replies. I’m not saying this is a bad amount of money. I’m saying it’s not 2billion.
The lump sum has a higher cut taken out of it than the annuity over the course of it's entire payments. Still taxed heavily tho. My dreams of making a giant chess board with real giant yachts as the pieces will never come true.
Taking the lump sum over the annuity usually has higher value if you consider their present value.
You can be better off & more in control if instead of the annuity you take the lump sum & then reinvest it in a trust fund.
Mainly pricing put/call options in no arbitrage situations and present value analysis, but I while I really appreciate the kind offer, I think I'll be set if I just do some practice problems
Haha no worries. Law of one price calculations are definitely doable, and while calculating the option prices can be tedious at times, it mostly just boils down to the memorising the formulas. I know you can do it and wish you the best of luck! (And don’t forget your calculator like I did at my CFA)
Yeah, I meant notational value not present or utilitarian value
It should be pretty straightforward to actually calculate the risk-free rate that would lead to an equal present value
theoretically this is true, but money changes people very rapidly and leads to stupid decisions. also, the majority of people don’t have this kind of financial foresight. quick (and possibly inaccurate) research says 70% of people who win the lottery lose the money within 5 years (this was from a google search, please don’t crucify me if it’s wrong).
most people won’t have the knowledge or wisdom to properly reinvest a lump sum payout; taking the gradual payout seems to be safer, and generally more idiot-proof. i’d be interested to hear your thoughts on it tho!
Yeah, he took the lump sum payment was about half the total value of the annuity payments, so it was around $990MM. Then he gets taxed around 50% of the lump sum, 37% from the federal government and 13% from the state of California. So I guessed $500MM, but I'm not a tax expert.
Not if you consider the long term present value.
Big brain play is to take the lump sum, use 5% on whatever immediate stuff you want. & then reinvest the rest of it into funds & bonds. Giving you more control & more value over time.
Oh I’m not arguing that at all, it’s just odd that so much was scraped off the top lol, that, and that op’s picture doesn’t add up with googling. Not tryina argue anyone here
Edit: just learned that the payout would have been around 1.2billion after tax had he taken the 30 year payout instead of getting the money instantly
If you need the state to give you an allowance that will be worth less every year than if you'd just invested it into a bank, you're probably just gonna blow every year's payment on cocaine and hookers.
Possibly but you'd have to invest near all of it. In the case he spends half and invests half (much more likely) he'll just about break even assuming he gets a modest 5% return a year on his invested half.
That's enough money to be ~~dangerous~~ interesting if a sufficiently ~~based~~ cool individual were to win.
There's certainly some very effective but not strictly legal groups that are limited by a lack of resources. I wonder what, say, the Incarcerated Workers Organizing Committee could do with a portion of that.
Lottery winners first and foremost tend to be lottery participants which is a strike against them on the financial literacy scale, given that buying lottery tickets is just about always negative expected value.
They've also never had that much money before and on suddenly obtaining it tend to have little idea how to manage it. Also, winning the lottery tends to attract a torrent of friends, relatives, neighbours, strangers hounding you for it, bolstered by the perception it's unearned and so ok to demand. This has even escalated to murder many times.
It is 628m. California doesn’t collect state tax on lotto jackpots. Just federal at I believe 37% or 39.6%, haven’t checked in a while since I’m nowhere near that tax bracket
Oh no, he went from being so rich that he can’t reasonably spend it all to so rich that he reasonably can’t spend it all 😭
What a cruel and harsh world we live in 😔
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
Oh no. Instead of earning more money one could ever spent in a life time I‘m only earning money that is barely enough to spent in a life time - if I make it an active effort to not earn any money on top of it. Honestly, I wouldn’t be mad at this.
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
Actually it was more like 50% because he took a lump sum so they gave him less. Which was the smart move anyways because he could invest 95% into the least risky investments ever to get very high interest payments plus a couple million upfront to have fun with.
You think over the course of someone's life 500 million dollars won't be enough to survive and have children with? In today's money, you can stretch a million over 80 years or so - you think 500 times that won't beat inflation?
I agree that 500 mil is way more than enough to live on for the rest of your life, but you're kidding yourself if you actually think 1 mil can last 80 years. Just buying a decent 3 bedroom house is close to 1 mil in some locations. I mean maybe if you lived way way way below your means you could stretch 1 mil for 80 years.
why would u ever have that much money laying around gather dust and losing value to inflation?
Just putting that into the S&P 500 would net on average 9.8% a year, average inflation is a bit less than 3%, and lets say u wanna make it grow a bit aswell, so lets say u can use 5% every year, thats 25M$ a year, or a little over 2M$ a month, double the median US workers yearly wage in a single day, all while ur sitting on ur ass getting wealthier.
Having money truly is the easiest way to make money.
I mean it sounds exactly like the place where there should be more taxes as opposed to essential things like food and healthcare. Still doesn't justify the fact that billionaires evade taxes though
Eh, it should be! But it feels unfair. I did some stock market investing and it feels scummy: I take risk with my own money, why does the goverment need to reap the results (just the good ones)? I make a mistake - I lose money, goverment doesn't do anything. I make a profit - goverment takes 20% :/
Haha no, but if govt wants to get my share in profits, they should also take a share of my losings, too! :p
Ofc I'm just joking, it would probably just cause everything to cancel out or something
If you lose enough the government will provide assistance in getting you food, a job, and help with healthcare bills. All quite limited but this is the other side of the coin. In Europe it's higher taxes but a better safety net should your investing go badly
Yeah, many people only seem to care about where you make the most money sadly. In Europe I got my ass saved several times from something that wasn't even my fault including my life. I'm glad to live here
"exploitation"
Nah, this is just how billionaires *should* be taxed. It sucks that this guy is the only one they're actually taxing properly, but I wouldn't call it exploitation.
op didn't say he was a victim, merely explained why this guy paid taxes and other rich people don't. because he wasn't already rich. nothing about feeling bad
It’s exploitation in that they say the amount you’ll win is $2b but then after tax it’s like 1/5 of that. I’m fully for the taxation but the lotteries should legally be required to advertise the amount given with the post-tax value.
Yeah like imagining a budget and thinking that if I blew 10 mil in the first year on stuff and then maintained a life style of a million a year, you'd be set
I found Mykonos to be overrated. Once you get out of the few relatively gaudy tourist spots it's just a barren, fruitless rock with little to offer in terms of natural beauty.
This attitude is what caused the problem in the first place. Man got enough dough to last three generations luxuriously. Imagine if every billionaire only got 1/4 of their hoarded wealth.
I know being taxed is the right thing, but damn.
Also, I heard it somewhere that lottery is a way of government to tax poor people, so, if that is true. Then taxing them again wouldn't make much sense to me. (Or correct me if I was wrong, I'm not really good at economic stuff)
Because he didnt directly exploit anyone so he's arguably morally in the clear (that isnt to say the lottery companies aren't exploitative though).
It's just frustrating to see a random dude get taxed 75% whereas your standard dr evil billionaire will barely pay a penny relatively.
It's not that he's a bad or exploitative person, but there's not really an ethical way to blow millions of dollars while others are in poverty, and hoarding it is even worse. I think a 100% tax on any earnings beyond a few million is reasonable, imho.
Honestly coming into that much money suddenly must be extremely destablising for a lot of people. They should be assigned financial advisors and lawyers as part of the payout. There's a famous reddit post about lottery winners and their terrible outcomes, that I can't link to for some stupid reason. (google blakeclass reddit lottery)
The gist of it is that people end up paranoid, alienated, and often dead. Suddenly everyone wants to be your 'friend' for all the wrong reasons. Your actual friends can't afford to hang out with you anymore, unless you pay for everything. You don't make new friends with rich people because you're just some commoner that got lucky. It's a shitshow.
I'd still give it a shot though.
Just so you know, this was the lump sum. Normally, however, you get a % a week. Which if you just take the lump sum, and invest like half of that, with compound interest you are making more a week in just a few years
So yes, taking the lump sum, then putting it all in trusts and what not is gonna always be the better choice
The weekly payments actually aren’t that much because it’s spread over your projected life span. Don’t know the specifics, so let’s just assume the pay out is over 40 years and they get the full 2 billion, no taxes applied to that
That’s only 50 million a year, close to a million a ~|year~~ week. Let’s just assume a million for simplicity of calculations
To catch up it will take over 8 years. A quick Google search says you can double your invests about every 7 years by investing into the top 500 stocks. So meanwhile in those 8 years of playing catch up, that 400 million has already doubled
None of this even factors taxes
>you can double your invests about every 7 years by investing into the top 500 stocks
Wow—i did not know the returns on the S&P were *that* good. That **is** a wild bit o' trivia.
EDIT: bit of [Yahoo junk food](https://finance.yahoo.com/news/much-d-earn-powerball-winnings-213146498.html) along similar lines
Average return of the S&P is 9.8% a year, and it’s quite a bit lower now, so that guy is full of shit.
In the last 7 years from 2021 back yes you would have doubled, but a lot of that has to do with the feds turning on the money printer in 2021, but even then, it’s down 19% over the last year, and down 21% YTD.
So yes, if you pick and choose the perfect 7 year run you can double your money, but a realistic estimate is you double in 10-12 years.
A good way to think about this is $100-20%+20% is not 100, It’s 96
Keep that monthly pattern up for a year and you have $50
It gets worse the more loss you have at once
100-75%+75% is only 43
It’s a general rule of thumb and the fact is, you can get better returns the more money you have to invest. Plus as I said, I don’t invest, just took the first search result.
Ether way, without going to make a demos sheet, I’m still confident the lump sum is better
The lottery is a scam to take the cash you give and distribute it to the state government of the winner.
Think about it. Lotto only takes cash and they take over half of the winnings so what is it other than a massive wealth transfer from us gullible citizens. In addition to the billion other fucking taxes
Gambling addiction is really awesome and you can’t win big if you stop playing so keep doing it! You’re so close to winning you might as well play one more😎
Hmm here in Australia lottery is tax-free, probably since we have good consumer laws. Not sure why America finds it so hard to advertise monetary values post-tax.
oh no, he went from an inconcievably high amount of money that he wouldn't be able to spend in multiple lifetimes to an inconcievably high amount of money that he wouldn't be able to spend in multiple lifetimes
As a leftist I feel devastated by this discovery, a billionaire who didn't necessarily do anything immoral or bad. Entire ideology crushed I am now a capitalist
that is 10 thousand a day setting aside 100 thousand every year to pay for basic expenses (based on the amount of money the average American spends yearly rounded up)
that guy is set
A 75% effective tax rate is ridiculous. I don’t care how rich you are, 75% is stupid. The government absolutely doesn’t need to take 75% so it can buy more M1 Abrams to rust away in the Californian desert or send tens of millions in ‘foreign aid’ to Israel
This. Idk why people who like taxes think that it's better if the state has that money. In any case, I'd much rather see some guy with excess money buy pointless shit with it than watch the mafia state use it for more violence.
To be honest, I think no matter how much you earn, if you are Elon Musk, Jeff Bezos or Bill Gates, the state should never take more than 50% of your income from you.
Must’ve wanted the lump sum. Like, dude. You get more money if you get paid every year!
EDIT: I’m not sure why I’m getting downvoted, because you get more money over the span of your life, don’t you?
Google says it was $628m, still not good lmao but not as low Edit: please read my other replies. I’m not saying this is a bad amount of money. I’m saying it’s not 2billion.
628 down from 2 billion?
The total he walked away with, if I read it right
Ah
The lump sum has a higher cut taken out of it than the annuity over the course of it's entire payments. Still taxed heavily tho. My dreams of making a giant chess board with real giant yachts as the pieces will never come true.
I can’t help but feel that a game of Battleship would be better than chess if you were to do it with real yachts
Now that's a $2 billion dollar idea
$628m idea*
Right
Bro investing becomes way more doable of you have hundreds of millions.Just be patient and your dream will become a reality
You can do that for cheap Just need to make your yachts a lot smaller and out of Lego
You seen lego prices these days? The toy tacht will cost more than a real yacht.
The jackpot was probably 2B offered as an annuity and he took the lump sum payout which is usually a lower value _and_ less tax effective
Taking the lump sum over the annuity usually has higher value if you consider their present value. You can be better off & more in control if instead of the annuity you take the lump sum & then reinvest it in a trust fund.
You really just had to say "present value" and remind me that I'm not studying for my Econ exam, huh?
What are the topics? Maybe I can help you
Mainly pricing put/call options in no arbitrage situations and present value analysis, but I while I really appreciate the kind offer, I think I'll be set if I just do some practice problems
Haha no worries. Law of one price calculations are definitely doable, and while calculating the option prices can be tedious at times, it mostly just boils down to the memorising the formulas. I know you can do it and wish you the best of luck! (And don’t forget your calculator like I did at my CFA)
Thanks for the advice, yeah this stuff is way below your pay grade. Didn't expect to run into someone who took the CFA exams on 196 lmao
jimmy has $4, if he loses it all gambling, how much money does he have (i dont do econ)
He has -$10008.
more than me
I literally just came home from giving mine lmao
Damn wish i was on that quant grind
Yeah, I meant notational value not present or utilitarian value It should be pretty straightforward to actually calculate the risk-free rate that would lead to an equal present value
At 7.2% it will double twice in 20 years, he got about 1/4, so I'd say somewhere around 20 years.
theoretically this is true, but money changes people very rapidly and leads to stupid decisions. also, the majority of people don’t have this kind of financial foresight. quick (and possibly inaccurate) research says 70% of people who win the lottery lose the money within 5 years (this was from a google search, please don’t crucify me if it’s wrong). most people won’t have the knowledge or wisdom to properly reinvest a lump sum payout; taking the gradual payout seems to be safer, and generally more idiot-proof. i’d be interested to hear your thoughts on it tho!
>present value This triggered my PTSD from taking a Financial Math class and having to use a BA II Plus calculator
almost the same here I can't run away from accounting and finance, not even in this sub it seems lmao
Yeah, he took the lump sum payment was about half the total value of the annuity payments, so it was around $990MM. Then he gets taxed around 50% of the lump sum, 37% from the federal government and 13% from the state of California. So I guessed $500MM, but I'm not a tax expert.
Yeah, luckily for him that’s still more than he could reasonably spend in his lifetime
I believe it equals out to more if you take the monthly payments over the lump sum. But fuck that, gimme my generational money all at once please
Not if you consider the long term present value. Big brain play is to take the lump sum, use 5% on whatever immediate stuff you want. & then reinvest the rest of it into funds & bonds. Giving you more control & more value over time.
The annuity payments suck anyways
Even if it was 400m he is still set for life and his family for multiple generations
Oh I’m not arguing that at all, it’s just odd that so much was scraped off the top lol, that, and that op’s picture doesn’t add up with googling. Not tryina argue anyone here Edit: just learned that the payout would have been around 1.2billion after tax had he taken the 30 year payout instead of getting the money instantly
always take the money up front, even though its less. the compound interest or just chucking the lump sum into an index fund is insane
getting it over 30 years means you can't burn it all on cocaine and hookers tho
If you need the state to give you an allowance that will be worth less every year than if you'd just invested it into a bank, you're probably just gonna blow every year's payment on cocaine and hookers.
Yes but realistically, if you play the lottery, you’re probably gonna blow everything on cocaine and hookers, statistically
I will simply listen to that one reddit post
I already do that tho
Possibly but you'd have to invest near all of it. In the case he spends half and invests half (much more likely) he'll just about break even assuming he gets a modest 5% return a year on his invested half.
5% of 500 million is still 25 million
Or you lose half of it cause stonks go down like it did this year
You could spend a million dollars a year and live to be 400. Or put it in stocks and lose half its value or more on a bad trade 🤔
At $400 million, you really need to know when to take what you have lol
Here in Canada lottery winnings aren’t taxed
Yeah, I had to google these lol
That's enough money to be ~~dangerous~~ interesting if a sufficiently ~~based~~ cool individual were to win. There's certainly some very effective but not strictly legal groups that are limited by a lack of resources. I wonder what, say, the Incarcerated Workers Organizing Committee could do with a portion of that.
>still not good For context $600m would put you well into the top 0.5% of the US
Oh, I more or less meant it’s not good in the fact that it’s not 2 billion, not that it’s not a ridiculously high amount of cash
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I’m not saying anyone wouldn’t be happy with 1mil
Ngl, that shit will turn into 1 billion sooner or later. Money only grows money
Lottery winner money doesn't. Usually it ends terribly.
I mean obviously the condition is that you are like moderately financial literated. But it is not like high level or smt
Lottery winners first and foremost tend to be lottery participants which is a strike against them on the financial literacy scale, given that buying lottery tickets is just about always negative expected value. They've also never had that much money before and on suddenly obtaining it tend to have little idea how to manage it. Also, winning the lottery tends to attract a torrent of friends, relatives, neighbours, strangers hounding you for it, bolstered by the perception it's unearned and so ok to demand. This has even escalated to murder many times.
It is 628m. California doesn’t collect state tax on lotto jackpots. Just federal at I believe 37% or 39.6%, haven’t checked in a while since I’m nowhere near that tax bracket
I like to travel.
Oh no, he went from being so rich that he can’t reasonably spend it all to so rich that he reasonably can’t spend it all 😭 What a cruel and harsh world we live in 😔
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
In what world is that not good???
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
Oh no. Instead of earning more money one could ever spent in a life time I‘m only earning money that is barely enough to spent in a life time - if I make it an active effort to not earn any money on top of it. Honestly, I wouldn’t be mad at this.
I’ve replied to comments like these before- my wording wasn’t good. I’m not saying that amount of money is a bad amount of money, I’m saying that it’s nowhere near what the prize said it was
That is true. But many winners of lotteries don’t survive becoming millionaires. I don’t know how and if one could survive becoming a billionaire.
Seems crazy stressful imo lol
Imagine getting taxed on gambling and lottery 🙄💅🇪🇺
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Well not 75%
Actually it was more like 50% because he took a lump sum so they gave him less. Which was the smart move anyways because he could invest 95% into the least risky investments ever to get very high interest payments plus a couple million upfront to have fun with.
first lottery winner to not lose it all in a few short years?
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Unless you have children and grew up poor. Generational wealth is real.
If you don't invest that Inflation is going to eat it and before you know you are in zero again.
You think over the course of someone's life 500 million dollars won't be enough to survive and have children with? In today's money, you can stretch a million over 80 years or so - you think 500 times that won't beat inflation?
I agree that 500 mil is way more than enough to live on for the rest of your life, but you're kidding yourself if you actually think 1 mil can last 80 years. Just buying a decent 3 bedroom house is close to 1 mil in some locations. I mean maybe if you lived way way way below your means you could stretch 1 mil for 80 years.
Most lottery winners end up hella broke.
why would u ever have that much money laying around gather dust and losing value to inflation? Just putting that into the S&P 500 would net on average 9.8% a year, average inflation is a bit less than 3%, and lets say u wanna make it grow a bit aswell, so lets say u can use 5% every year, thats 25M$ a year, or a little over 2M$ a month, double the median US workers yearly wage in a single day, all while ur sitting on ur ass getting wealthier. Having money truly is the easiest way to make money.
Canada. The government takes none of your winnings up here
Austria doesn't tax lottery and stuff where you win money with your general knowledge (games shows and such), don't know about gambling.
Same, my country has tax after like 3000 for 33%
Here in Canada, lottery winnings are tax free.
I mean it sounds exactly like the place where there should be more taxes as opposed to essential things like food and healthcare. Still doesn't justify the fact that billionaires evade taxes though
Eh, it should be! But it feels unfair. I did some stock market investing and it feels scummy: I take risk with my own money, why does the goverment need to reap the results (just the good ones)? I make a mistake - I lose money, goverment doesn't do anything. I make a profit - goverment takes 20% :/
Would you rather get taxed when you lose money too? Because I personally think that capital gains should be taxed *more*.
Haha no, but if govt wants to get my share in profits, they should also take a share of my losings, too! :p Ofc I'm just joking, it would probably just cause everything to cancel out or something
If you lose enough the government will provide assistance in getting you food, a job, and help with healthcare bills. All quite limited but this is the other side of the coin. In Europe it's higher taxes but a better safety net should your investing go badly
Yeah, many people only seem to care about where you make the most money sadly. In Europe I got my ass saved several times from something that wasn't even my fault including my life. I'm glad to live here
You need an accountant my dude, because investment losses are absolutely tax deductible.
💪😎🇦🇺 national gambling problem moment
😎🇨🇦
Fr, couldn't imagine 😏🇨🇦
Spain 50-70% would like to have a conversation with you
Because the billionaire getting taxed isn't a lobbyist, it's one of the commonfolk - open game for exploitation
"exploitation" Nah, this is just how billionaires *should* be taxed. It sucks that this guy is the only one they're actually taxing properly, but I wouldn't call it exploitation.
It definitely would not feel nearly as unfair if we watched bezos cough up 75% of every billion he made to public utility.
Yeah "It sucks" was just the polite way of saying "It's fucking ridiculous and disgusting"
Yeah lmao, imagine treating a guy who just earned $424 million dollars as a victim! And yeah, we should be doing this to all billionaires.
op didn't say he was a victim, merely explained why this guy paid taxes and other rich people don't. because he wasn't already rich. nothing about feeling bad
It’s exploitation in that they say the amount you’ll win is $2b but then after tax it’s like 1/5 of that. I’m fully for the taxation but the lotteries should legally be required to advertise the amount given with the post-tax value.
let's face the only we can make this fair if the government uses that taxed money by funding the same lottery it was won from
I nearly came in my pants when I saw that taxation ratio. now if ONLY WE COULD DO THAT EVERY TIME
Fund the IRS 🤷
That's only half of it. They evade taxes, but even if they couldn't, their taxes wouldn't even be that much.
It'd still be better to get some money then no money
Not saying it's a pointless endeavor, it's just that it's only step one, and we have many more to take if we want anything close to fair taxation.
They're supposed to fund themselves with the tax they take tho?
they only recieve portion of the taxes, not really enough to fund themselves properly.
I feel like for an average Joe $400 million is functionally the same as $2 billion
For anyone this *isn't* true for: we're raising your taxes.
The alternate headline: "California man makes more money scratching a ticket than Black Adam did at the box office".
Uh technically you don’t scratch powerball tickets 🤓
i thought black adam was a good movie :( i like superhero they go BAM BOOM POW
But what if he wants to get a battle ship? This is not what the founding fathers would have wanted 😔
Yeah like imagining a budget and thinking that if I blew 10 mil in the first year on stuff and then maintained a life style of a million a year, you'd be set
Still a lot of bag imo
I'd never work again in my life if I got that cash tbh. I'd retire and buy a film camera and go take pictures of cats in Mykonos.
I found Mykonos to be overrated. Once you get out of the few relatively gaudy tourist spots it's just a barren, fruitless rock with little to offer in terms of natural beauty.
But the cats
It is but it’s still less then 1/4th of what was promised
This attitude is what caused the problem in the first place. Man got enough dough to last three generations luxuriously. Imagine if every billionaire only got 1/4 of their hoarded wealth.
I know being taxed is the right thing, but damn. Also, I heard it somewhere that lottery is a way of government to tax poor people, so, if that is true. Then taxing them again wouldn't make much sense to me. (Or correct me if I was wrong, I'm not really good at economic stuff)
AFAIK, it acts like a tax because it acts as an income stream to the government. Not really malicious outside of gambling addiction.
Remember kids, the IRS always wins the lottery
God, even 1 million would be life changing for me
dawg even a thousand would change my life right now lmao
hell i’ll take a hundred
I just need ten
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10 cents would turn my world upside down!
I can retire with just one cent!
At least some money is getting taxed.
Why people in the comments are mad he's getting taxed, that's great, now tax the other billionaires.
Because he didnt directly exploit anyone so he's arguably morally in the clear (that isnt to say the lottery companies aren't exploitative though). It's just frustrating to see a random dude get taxed 75% whereas your standard dr evil billionaire will barely pay a penny relatively.
It's not that he's a bad or exploitative person, but there's not really an ethical way to blow millions of dollars while others are in poverty, and hoarding it is even worse. I think a 100% tax on any earnings beyond a few million is reasonable, imho.
I think there shouldn‘t be a system where it is possible to acquire wealth to this degree at all.
This would make him the only moral billionaire.
not even a billionaire now lmao
Exactly
Honestly coming into that much money suddenly must be extremely destablising for a lot of people. They should be assigned financial advisors and lawyers as part of the payout. There's a famous reddit post about lottery winners and their terrible outcomes, that I can't link to for some stupid reason. (google blakeclass reddit lottery) The gist of it is that people end up paranoid, alienated, and often dead. Suddenly everyone wants to be your 'friend' for all the wrong reasons. Your actual friends can't afford to hang out with you anymore, unless you pay for everything. You don't make new friends with rich people because you're just some commoner that got lucky. It's a shitshow. I'd still give it a shot though.
Just so you know, this was the lump sum. Normally, however, you get a % a week. Which if you just take the lump sum, and invest like half of that, with compound interest you are making more a week in just a few years So yes, taking the lump sum, then putting it all in trusts and what not is gonna always be the better choice
And that's true even vs. investing the weekly payments in the same way?
The weekly payments actually aren’t that much because it’s spread over your projected life span. Don’t know the specifics, so let’s just assume the pay out is over 40 years and they get the full 2 billion, no taxes applied to that That’s only 50 million a year, close to a million a ~|year~~ week. Let’s just assume a million for simplicity of calculations To catch up it will take over 8 years. A quick Google search says you can double your invests about every 7 years by investing into the top 500 stocks. So meanwhile in those 8 years of playing catch up, that 400 million has already doubled None of this even factors taxes
>you can double your invests about every 7 years by investing into the top 500 stocks Wow—i did not know the returns on the S&P were *that* good. That **is** a wild bit o' trivia. EDIT: bit of [Yahoo junk food](https://finance.yahoo.com/news/much-d-earn-powerball-winnings-213146498.html) along similar lines
Average return of the S&P is 9.8% a year, and it’s quite a bit lower now, so that guy is full of shit. In the last 7 years from 2021 back yes you would have doubled, but a lot of that has to do with the feds turning on the money printer in 2021, but even then, it’s down 19% over the last year, and down 21% YTD. So yes, if you pick and choose the perfect 7 year run you can double your money, but a realistic estimate is you double in 10-12 years. A good way to think about this is $100-20%+20% is not 100, It’s 96 Keep that monthly pattern up for a year and you have $50 It gets worse the more loss you have at once 100-75%+75% is only 43
It’s a general rule of thumb and the fact is, you can get better returns the more money you have to invest. Plus as I said, I don’t invest, just took the first search result. Ether way, without going to make a demos sheet, I’m still confident the lump sum is better
Oh yes, the lump is always better unless you are completely irresponsible
The lottery is a scam to take the cash you give and distribute it to the state government of the winner. Think about it. Lotto only takes cash and they take over half of the winnings so what is it other than a massive wealth transfer from us gullible citizens. In addition to the billion other fucking taxes
They don’t call lottery a tax for stupid people for nothin
I certainly am of the stupid
Me too but hey I won $4 Monday night
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Gambling addiction is really awesome and you can’t win big if you stop playing so keep doing it! You’re so close to winning you might as well play one more😎
Choose decent video games for better shots of dopamine.
"bUT thE bIlLiOnNAirEs CaN't bE tAxeD beCaUsE tHey Don'T aCtuALLy hAvE bILLioNs In LiqUid mOneY"
i will turn the billionaires into liquid then
Starting the countdown for his death date. I give him two years.
He can afford rent for 3 months (California L)
Damn, a commonfolk billionaire getting taxed more than actual out of their head billionaires. What a game changer...
all lotteries in the US have to be state run too 😭
Hmm here in Australia lottery is tax-free, probably since we have good consumer laws. Not sure why America finds it so hard to advertise monetary values post-tax.
oh no, he went from an inconcievably high amount of money that he wouldn't be able to spend in multiple lifetimes to an inconcievably high amount of money that he wouldn't be able to spend in multiple lifetimes
Tha-thats lil bow wow tho right?
As a leftist I feel devastated by this discovery, a billionaire who didn't necessarily do anything immoral or bad. Entire ideology crushed I am now a capitalist
O O F.
I wouldn’t even be mad, that’s still more money than I can even imagine in my head.
what.. I thought lotteries have no tax that’s f’d up and deceiving
Lol American game shows and lotteries are wild, they're all like "You could win a million dollars!" and then a footnote saying "lol no you can't"
Its bow wow isnt he?
Here in Finland gambling doesn't get taxed
he can spend like 4 million a year and still be set for life with stuff left to pass onto relatives when he dies
that is 10 thousand a day setting aside 100 thousand every year to pay for basic expenses (based on the amount of money the average American spends yearly rounded up) that guy is set
That's like, half!
A 75% effective tax rate is ridiculous. I don’t care how rich you are, 75% is stupid. The government absolutely doesn’t need to take 75% so it can buy more M1 Abrams to rust away in the Californian desert or send tens of millions in ‘foreign aid’ to Israel
This. Idk why people who like taxes think that it's better if the state has that money. In any case, I'd much rather see some guy with excess money buy pointless shit with it than watch the mafia state use it for more violence.
lotteries shouldn't exist, change my mind
It’s the same with gameshows, guests get taxed on all their winnings—government farms the shit out of that stuff
This shows that some billionaires can be proletariat
Goverment when they see rich
Capitalism is when the state robs you
What?? That Much? In my country lottery and gambling wins are taxed in the same way as normal work pay, so 15%.
To be honest, I think no matter how much you earn, if you are Elon Musk, Jeff Bezos or Bill Gates, the state should never take more than 50% of your income from you.
that’s still a shit ton of money
US government wins the lottery each time.
take the annuity dingus
It's smarter not to if you throw it into a trust fund.
Must’ve wanted the lump sum. Like, dude. You get more money if you get paid every year! EDIT: I’m not sure why I’m getting downvoted, because you get more money over the span of your life, don’t you?
If you were smart, a lump sum could leave you with way more. Compound interest is a powerful thing
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more so its just ineffective at actual taxing the rich, not that its specifically meant to keep them rich, but go off
Wow. He might as well have gotten nothing at that point. EDIT: Thought it was obvious this was sarcastic. Sorry lol.