20 yo won the mega millions jackpot

[ahat]

Pull up b.

I might not even come out the house to deal with you. Might just send my mans Bobby Hill outside wit da bag, and dare you to try him.

I got a plate of "louie anderson" to keep Booby busy.

Show yourself Gribble

 

[ninjahood]

Aren't the annuity payments fixed though?

no they're not, they go up over time to reflect da future value based on da inflation rate...30 years of "set it and forget it" payments that give you nearly everything you won >*

 

[ninjahood]

It’s pretty much like having a pro athlete contract paid out by the state. Them dudes ain’t getting 2,3, or 400 mil up front either and they seem ok

thats what im saying.

 

[ninjahood]

But the idea that you're throwing away money by taking the lump sum isn't necessarily accurate.

if is accurate because you're losing so much of da earnings in taxes at da expense of taking more in one time....

 

[SadBoi]

The winner lives 10 minutes where I’m from.

 

[Mark Antony]

I would take the lump sum and take a while just chillin, traveling and learning about finances. Throw a few mill into crypto since i'm already in and probably make whatever I lost in tax in a year.

 

[boris]

if is accurate because you're losing so much of da earnings in taxes at da expense of taking more in one time....

No, it's not because there are people that know basic investment. If I can make more money, I'm not throwing anything away.

 

[ninjahood]

No, it's not because there are people that know basic investment. If I can make more money

what's stopping you from "making more money" from da annuity you're getting?

 

[boris]

what's stopping you from "making more money" from da annuity you're getting?

You can invest more up front with the lump sum. That's the point.

 

[ninjahood]

you're also losing giant chunk from taking a lump sum.

"investing" which isn't guaranteed just to make your initial win whole again sounds dumb.

you don't gamble invest your whole wad, you take a portion you're willing to lose.

30 years of annuity payments looks like you can completely fail on investments at least 5-10 times and still not jeopardize your whole take... thats da smart play.

 

[jamie dimon]

Finance 101 should be mandatory in high school

 

[boris]

you're also losing giant chunk from taking a lump sum.

"investing" which isn't guaranteed just to make your initial win whole again sounds dumb.

you don't gamble invest your whole wad, you take a portion you're willing to lose.

30 years of annuity payments looks like you can completely fail on investments at least 5-10 times and still not jeopardize your whole take... thats da smart play.

Do you just skip 401k contributions? You don't seem to understand how investment or interest works.

 

[ninjahood]

Do you just skip 401k contributions? You don't seem to understand how investment or interest works.

ironically you brought that up.

gold plated pension > 401k

gold plated annuity > da prospects of "potential" investments.

 

[antidope]

Go grab you a financial calculator and do some math man. The law of compounding returns is key here. Investing it all up front will net you more the vast majority of the time.

Lol at comparing Antoine Walkers situation to a true investment portfolio.

 

[boris]

ironically you brought that up.

gold plated pension > 401k

gold plated annuity > da prospects of "potential" investments.

You didn't answer my question. Yes or no on the 401k?

Go grab you a financial calculator and do some math man. The law of compounding returns is key here. Investing it all up front will net you more the vast majority of the time.

Lol at comparing Antoine Walkers situation to a true investment portfolio.

Bingo.

 

[ninjahood]

Investing it all up front will net you more the vast majority of the time.

u can also lose more or all of it if ish goes left.

I guess you always ignore da disclaimer about..

Risk involves the chance an investment's actual return will differ from the expected return. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment.

Risk https://www.investopedia.com/terms/r/risk.asp#ixzz54BIGekT0

 

[antidope]

Finance 101 should be mandatory in high school

I've always believed this and it's a crime that it isn't.

 

[antidope]

u can also lose more or all of it if ish goes left.

I guess you always ignore da disclaimer about..

Risk involves the chance an investment's actual return will differ from the expected return. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment.

Risk https://www.investopedia.com/terms/r/risk.asp#ixzz54BIGekT0

Losing it all is next to impossible. The market is inherently efficient. You could literally put the entire thing in the S&P 500 and you'd more than likely end up with more money than your plan.

I'm not here to convince you of anything though. I know what I'd do and I have the knowledge base to do it and not worry about losing any of it in the long run.

 

[ninjahood]

Yes or no on the 401k?

i have a 401k, guess what? completely irrelevant what im talking about.

you don't risk a solid annuity with a hard number long term, that's inflation proof based on da interest rates to chop yourself at da knees for "maybe money".

 

[kickvicisous]

Question is... How many of yall would quit your jobs?

I know my pops always says hell quit if he wins but hes in his 60s so thats a different scenario.

I'd use up all my PTO then give them 2 weeks, not leaving money I'm owed on the table

 

[ninjahood]

Losing it all is next to impossible.

Why do 70 percent of lottery winners end up bankrupt?
Updated on Jan 14, 2016 at 11:52 AM EST

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By Teresa Dixon Murray, The Plain Dealer

It seems difficult to believe: The lucky winners, possibly three, of Wednesday's $1.5 billion Powerball jackpot will probably go bankrupt within five years.

In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years, according to the National Endowment for Financial Education.

How is that possible?

"People who were little, ordinary people all of a sudden become extraordinary," said Steve Lewit, CEO of Wealth Financial Group in Chicago. "They're euphoric. They lose all sense of reality. They think they're invincible and powerful. They think they're Superman."

The biggest problem, several finance advisers agreed, is that lottery winners give away too much money to family and friends.

"Once family and friends learn of the windfall, they have expectations of what they should be entitled to, and many of these expectations are not rational," said Charles Conrad, senior financial planner with Szarka Financial in North Olmsted. "It can be very difficult to say no."

The easy solution would be to rely on a third party to act as a gatekeeper, Conrad said, but many lottery winners don't turn to anyone to intercept the flood of requests from all of those "close" friends and relatives. The same thing often applies to professional athletes who get huge contracts, he said.

Once new millionaires start giving money away, "it's difficult to reverse course and turn off the spigot," agreed Westlake financial planner Scott Snow, who had a South Euclid client who won more than $100 million in the Mega Millions lottery a decade ago.

Kevin Myeroff, a certified financial planner and CEO of NCA Financial in Mayfield Heights, said a shocking number of lottery winners don't get help from professionals such as a financial adviser or attorney. Or they surround themselves with the wrong people. And then they up giving too much money away and squandering too much on depreciating assets such as cars, vacations and gifts.

It's compounded because, when you're talking about hundreds of millions or more than $1 billion -- what? -- it's virtually impossible to wrap your mind around what that amount means. You've heard the TV reports that you could stack $1.5 billion worth of $1 bills and it would reach 100 miles high. Or you could spend $30,000 a day and never run out of money.

When someone has hit a jackpot or received a big inheritance, "the recipient has no idea what that amount of money means to them," Myeroff said. "If someone had $20 million and I asked them, 'Could you safely take out $10,000 per month or $200,000 per month to live on?' They wouldn't have a clue."

Snow said newly wealthy people also often invest in businesses without scrutinizing them.

Conrad said lottery winners may not pay enough attention to anything they put money into. "They can invest in things that they don't understand and they do so without understanding the real risks involved," he said.

"If an investment has a lot of moving parts or can't be explained in simple terms, it probably isn't something they should be doing," Conrad said. "Just because they now have a significant amount of money doesn't mean that they automatically become a sophisticated investor."

To avoid financial woes and other problems, Snow said, lottery winners should surround themselves with a team of trusted advisers who can "act as a sounding board."

Lewit said that, six years ago, a good friend of his won $22 million in a lottery. In addition to hiring a financial planner, an accountant and an attorney, his friend hired a life coach "to make sure he kept his head screwed on straight." Further, his friend doesn't make any major financial decision without consulting his team.


With all of the pressures, it's no wonder that many lottery winners end up with costly addictions such as drugs or gambling, Myeroff said, that can burn through money.

Lewit said lottery winners often think they have a bottomless pit of money and they spend, spend, spend without a care. "These are obscene amounts of money," he said. "But you can plow through money fast once you get in that lane."

"It's natural to want to spend money on nice things once you receive a windfall," Conrad said. But if you don't have a budget, even for millions of dollars, "it is very easy to lose track of how much you have spent. Many don't realize this until it is too late."

http://www.cleveland.com/business/index.ssf/2016/01/why_do_70_percent_of_lottery_w.html

 

[antidope]

I was talking about the stock market. But ok bro.

 

[plansb]

Ninja will never admit he is wrong.

 

[Mark Antony]

Conrad said lottery winners may not pay enough attention to anything they put money into. "They can invest in things that they don't understand and they do so without understanding the real risks involved," he said.

"If an investment has a lot of moving parts or can't be explained in simple terms, it probably isn't something they should be doing," Conrad said. "Just because they now have a significant amount of money doesn't mean that they automatically become a sophisticated investor."

To avoid financial woes and other problems, Snow said, lottery winners should surround themselves with a team of trusted advisers who can "act as a sounding board."

Lewit said that, six years ago, a good friend of his won $22 million in a lottery. In addition to hiring a financial planner, an accountant and an attorney, his friend hired a life coach "to make sure he kept his head screwed on straight." Further, his friend doesn't make any major financial decision without consulting his team.

You read the section right under the part you highlighted though?

 

[ninjahood]

Ninja will never admit he is wrong.

im not wrong though...some of ya would rather be thirsty with lump sum of lotto money that's been chopped down instead of taking da 30 year annuity and getting da vast majority of it over time.

i don't need that much money at one time bot at da expense of my long term future earnings, and if i do i could always borrow against my annuity to make a specific purchase or investment.

Bonny Bonilla long term play >*