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chrissywins
August 19th, 2006, 10:46am
I'm a newbie sweeper who has already gotten her hopes up for the big win. It gets exciting filling out those entry forms doesn't it? I know I can't be alone! Lol...In any case, I ran into this article this morning which put it into a better perspective for me. I like the "dream" behind this all, but seeing the below just makes me appriciate the little I already have and keeps me in check that life won change tomorrow if I won something big. It's all about the dream though, keep plugging and getting a big surprise. Either way this is fun and a great new hobby for my free time. Figured I'd share this.......please respond with the FIRST thing you would do if you won big....I like the idea in the article...make a DFZ a decision free zone!


I'm also curious to find out more about taxes, how do you know how much will be taken out of a cash win or large win like a 1 mill dollar win? Anyone who knows more about the tax issues behind winning please feel free to share your expertise.






Unlucky lottery winners who lost their money
By Ellen Goodstein Bankrate.com


Is winning the lottery really a lucky event? Not if you lose the money, say experts and those who fleetingly had it all.

"Winning the lottery isn't always what it's cracked up to be," says Evelyn Adams, who won the New Jersey lottery not just once but twice (1985, 1986) to the tune of $5.4 million. Today, the money is gone and Adams lives in a trailer.

"I won the American dream but I lost it, too. It was a very hard fall. It's called rock bottom," says Adams. "Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language -- 'No.' I wish I had the chance to do it all over again. I'd be much smarter about it now," says Adams, who also lost money at the slot machines in Atlantic City.

"I was a big time gambler," admits Adams. "I didn't drop a million dollars, but it was a lot of money. I made mistakes, some I regret, some I don't. I'm human. I can't go back now so I just go forward, one step at a time."

Deeper in debt
Suzanne Mullins won $4.2 million in the Virginia lottery in 1993. Now she's deeply in debt to a company that lent her money using the winnings as collateral.

She borrowed $197,746.15, which she agreed to pay back with her yearly checks from the Virginia lottery through 2006. When the rules changed, allowing her to collect her winnings in a lump sum, she cashed out the remaining amount -- but stopped making payments on the loan.

She blamed the debt on the lengthy illness of her uninsured son-in-law, who needed $1 million for medical bills.

Mark Kidd, the Roanoke, Va., lawyer who represented the Singer Asset Finance Company who sued Mullins, confirms. He won a judgment for the company against Mullins for $154,147 last May, but they have yet to collect a nickel.


Next: These sad-but-true tales are not uncommon.

"My understanding is she has no assets," says Kidd.

Back to the basics
Ken Proxmire was a machinist when he won $1 million in the Michigan lottery. He moved to California, went into the car business with his brothers and within five years, Ken had filed for bankruptcy.
- advertisement -

"He was just a poor boy who got lucky and wanted to take care of everybody," explains Ken's son Rick. "It was a hell of a good ride for three or four years, but now he lives more simply. There's no more talk of owning a helicopter or riding in limos. We're just everyday folk. Dad's now back to work as a machinist."

Willie Hurt of Lansing, Mich., won $3.1 million in 1989. Two years later, he was broke and charged with murder. His lawyer says Hurt spent his fortune on a divorce and crack cocaine.

Charles Riddle of Belleville, Mich., won $1 million in 1975. Afterward, he got divorced, faced several lawsuits and was indicted for selling cocaine.

Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, particularly politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand.

One Southeastern family won $4.2 million in the early '90s. They bought a huge house and succumbed to repeated family requests for help in paying off debts.

The house, cars and relatives used up all their winnings. Eleven years later, the couple is divorcing, the house is sold, and they have to split what is left of the lottery proceeds. The wife got a very small house and the husband has moved in with the kids. Even the life insurance they bought ended up getting cashed in. "It was not the pot of gold at the end of the rainbow," says their financial adviser.

Luck is fleeting
These sad-but-true tales are not uncommon, experts say. "For many people, sudden money can cause disaster," says Susan Bradley, a certified financial planner in Palm Beach, Fla., and founder of the Sudden Money Institute, a resource center for new-money recipients and their advisers.

"In our culture, there is a widely held belief that money solves problems. People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves," she says.

Craig Wallace, a senior funding officer for a company that buys lottery annuity payments in exchange for lump sums, agrees.

"Going broke is a common malady, particularly with the smaller winners. Say you've won $1 million. What you've really won is a promise to be paid $50,000 a year. People win and they think they're millionaires. They go out and buy houses and cars and before they know it, they're in way over their heads," he says.

Are you really a 'millionaire'?
Part of the problem is that the winners buy into the hype.



"These people believe they are millionaires. They buy into the hype, but most of these people will go to their graves without ever becoming a millionaire," says Wallace, who has been in the business for almost a decade.

"In New Jersey, they manipulate the reality of the situation to sell more tickets. Each winner takes a picture with a check that becomes a 3-foot by 5-foot stand-up card. The winner is photographed standing next to a beautiful woman and the caption reads, 'New Jersey's newest millionaire.' "

Winning plays a game with your head
Bradley, who wrote "Sudden Money: Managing a Financial Windfall," says winners get into trouble because they fail to address the emotional connection to the windfall.

"There are two sides to money," she says. "The interior side is the psychology of money and the family relationship to money. The exterior side is the tax codes, the money allocation, etc. The goal is to integrate the two. People who can't integrate their interior relationship with money appropriately are more likely to crash and burn.

"Often, they can keep the money and lose family and friends, or lose the money and keep the family and friends -- or even lose the money and lose the family and friends."

Bill Pomeroy, a certified financial planner in Baton Rouge, La., has dealt with a number of lottery winners who went broke.

"Because the winners have a large sum of money, they make the mistake of thinking they know what they're doing. They are willing to plunk down large sums on investments they know nothing about or go in with a partner who may not know how to run a business."

What if you get so (un)lucky?
To offset some bad early-decision making and the inevitable requests of friends, relatives and strangers, Bradley recommends lottery winners start by setting up a "DFZ" -- a decision-free zone.

"Take time out from making any financial decisions," she says. "Do this right away. For some people, it's smart to do it before you even get your hands on the money.

"People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability -- even friends and family," she cautions. "It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture. It's a time to think things through, sort things out and seek an advisory team to help make those important financial choices."

As an example, Bradley says that on a list of 12 things people who come into a windfall will spend money on, buying a house is at the top of the list, while investing is No. 11. "You really don't want to buy a new house before taking the time to think about what the consequences are," she says. "A lot of people who don't have money don't realize how much it costs to live in a big house -- decorators, furniture, taxes, insurance, even utility costs are greater. People need a reality check before they sign the contract.

Evelyn Adams, the N.J. lottery double-winner, learned these lessons the hard way.

"There are a lot of people out there like me who don't know how to deal with money," laments Adams. "Hey, some people went broke in six months. At least I held on for a few years."

bidred73
August 19th, 2006, 11:08am
This is so sad but true. It takes luck to win but takes wise choices to hold on to it. I can't imagine how many newly found "friends" people aquire once they find out they have hit it big.

quiltfisher
August 19th, 2006, 11:16am
I've dreamed of winning big, who hasn't? And like the majority, it would probably be a very cold day for me to win. But hey, I can daydream...

Talk to both a lawyer, CPA, and my bank's vice president (very money savvy fella). Then I would pay off my debts (house, truck, small loan), pay my son's debts (not many, but a few). Give my son a set amount in a bank account with a limit set between the bank and I on how much he could withdraw each month. Put money in Certificate of Deposits. Put money in one account for household bills only (gas, electric, etc.), one for taxes and insurance (property, income, etc.) only. Give my checking and savings accounts a boost. Get a prepaid Visa-type card. Take my lawyer, CPA, bank v.p. and my brother's advice on what to do with the remainder to make it stretch through my golden years. Then I'd drive to Branson, MO and go eat at Whipper Snappers! (an all-you-can-eat lobster bar)

But alas, I'm from Oklahoma Indian territory-dirt farmer stock and doubt there are any windfalls to be foretold in any tea leaves for me. Still a pleasant dream though (sigh)....

bartleby1
August 19th, 2006, 11:25am
I think I would like to face the problems of winning the lottery, lol! Of course, I do understand that certains aspects of it must be hard and I've read many stories about family arguments and mismanagement of the winnings. I would still love to be facing those problems!

chrissywins
August 19th, 2006, 12:32pm
quiltfisher LOVE IT! hehe

PanamaKay
August 19th, 2006, 12:52pm
Winning the lotto IS ALL its cracked up to be. HOWEVER, WINNING THE LOTTERY AND BLOWING THE MONEY BECAUSE YOU CANNOT HANDLE THE MONEY AND YOU REFUSE TO APPOINT SOMEONE ELSE MORE KNOWLEDGEABLE TO DO SO IS JUST PLAIN STUPID.

This applies to all financial situations. I am a CPA and have seen this happen in families where they start to earn more money and then go deeply in debt because they don't know what they are creating.

Just use your head and hire someone if you feel insecure. This does not have to happen and in the majority of cases IT doesn't

crueltiming
August 19th, 2006, 1:06pm
for anyone who was lucky enough to win a bunch of $$$$ in a lottery and ended up on foodstamps.serves them right for being morons!
the first thing you do is GET OUT OF TOWN.no phone,no relatives,no contact with anyone.
take a vacation and plan for the future.
don't start handing out money to anyone just for asking.why should you?where were they when you were broke?
find a trustworthy financial advisor(good luck with that!)
might be a good idea to incorporate yourself for tax purposes.

vmyg
August 19th, 2006, 1:21pm
They say buying a big new house is a bad idea. I agree. What I would do is pay off the house I live in now. I like the house, I like the neighbors. Why would I want to move? Then I'd spend money fixing it up. Not extravagent things, just some new windows and carpet mainly. And definitely central air.

I wouldn't go out and buy a new expensive car either. I'm just happy with my 2005 Ford Focus. The only reason I'd even think of buying a new car would be to give my car to my soon-to-be-driving daughter. But still, nothing fancy.

I don't care about having my own helicopter or limo, so no worries there.

I don't really have a very big family or many friends. Of course I know they'd all be coming out of the woodwork after I won. But I think I could say no. Although, I think I'd keep it mostly a secret from everyone other than my immediate family.

I've already gone through the drugs and drinking stage of my life and I'm DEFINITELY not going back. So not to many worries there. I choose NOT to do drugs because of the way they ruin lives already. Not because I can't afford them.

I think I would even stay working and going to college because after my recovery from alcohol and drugs, I've realized that is what I need in my life to keep me busy and not greiving continuously for my Husband.

BUT, the one thing I would probably splurge on is a breast reduction and maybe a touch of liposuction and whatever they do to get rid of the saggy skin after baby is born.

KRSchulze
August 19th, 2006, 1:27pm
Ahhhhhh.....there are stupid people everywhere. I play the lotto faithfully (the only way to win is to play) and hope that someday I'll win. Outside of new cars, a nice vacation and a new house (both modest) I plan to save any winnings for retirement and my childrens' futures. Bring it on!

redfantum
August 19th, 2006, 1:28pm
The story is right, they fall into the hype. Your not rich, you just have more money. I didn't win the lottery, but I got a new job that doubled my salary. We just didn't think about it. I did invest in a retirement plan and life insurance that I didn't have, but the rest just went in the bank and we lived the same as we always did. Six months later when we needed a second car we went out and paid cash for a nice used one. Now we just go back to normal and it will all work out for our future.

I suppose if you win a mega lotto it is different, but a million or two (especially over 20 or 30 years) really is NOT life changing. It just gives you a bigger safety net. I like the way I live and don't think I would change that much. I am not into luxeries, just living well.

I would very much like to test this theory. :)

Urlik
August 19th, 2006, 1:35pm
Many lotto players are already people who are not "good" with money. Winning the lotto doesn't suddenly make them "good" with money.

Helen88
August 19th, 2006, 1:49pm
If I won my basic lifestyle would not change. I would pay off debts. I would buy a house on one floor.(I am disabled and can only access half of my present home). I would pay off the debt of my parents. I am not a diamonds and jaguar girl. I would buy a new pick up though :smile9:

ksmith47
August 19th, 2006, 1:50pm
Many lotto players are already people who are not "good" with money. Winning the lotto doesn't suddenly make them "good" with money.

That's it right there - if you are a financial misfit, you usually don't change just because you won the lottery.

FreakDuJour
August 19th, 2006, 1:52pm
That's just plain stupidity- the way some people throw the winnings around.

Shoot, if I were ever lucky enough to win the lottery, I wouldn't tell ANYONE.

mynxdog
August 19th, 2006, 1:53pm
Well, if anyone wins the lotto, I offer my expert services in helping you manage your millions. :smile9: Discount given to OLSers. :yesyes:

jndperry
August 19th, 2006, 1:53pm
If I won $1,000,000+, I would pay off our current house, or MAYBE buy one of the houses in our subdivision that is roughly the same, but with a basement. My husband would get a new car, because that is his thing, but it would be under $50,000. Other than that, we'd probably live very similar to how we live now, but maybe eat out once or twice a week.

My husband would keep his job, because he would go crazy being home all the time, and I would continue to be a stay-at-home-mom. No nannies or gardeners, and I don't know that I'd even get help with housekeeping.

We'd max out on retirement contributions, and we'd put lots more away into the kids' college funds. Other than that, I think life would be a lot like it is right now.

Inkyskeeper
August 19th, 2006, 2:05pm
you'd pay...$1.000.000 isnt that much after tax and then they tax you every year after that which i think is BS of the gov...other then that id just invest after i had moved out of my place and into a nice little house down the street .

I no longer have any Credit debt, got done with that a while back, but haveing my own 4 walls again is all i need to have it all...and id keep my job too because i enjoy it.

Investing is the ONLY option for me and live off the interrest if there is enough or any at all lol

bbking
August 19th, 2006, 2:06pm
Winning Lotto....well, guess I would be one of those people who would be broke in no time. I would give it all away. I know too many people with special needs that could be helped if only for a short time. I know too many good decent people who have struggled all their lives and never had much to show for it, I would give them a dream played out for once in their lives because they deserve it. I would move alright, only because I hate it here, this place has too many bad memories..but I would buy a little log cabin deep in the woods with a little lake and maybe a place for a garden and my own power system. That to me, is the real American dream. Isnt it amazing that we all have different perspectives on life and money? Coarse thats what makes the world, the world. Just my take on things I guess.

isavegas
August 29th, 2006, 9:31am
I've always planned to do two things - getting a lawyer to help me tie it all up safetly and moving far away from everyone. Then get a home and hopefully a bakery. That's about it. Then again, I don't play the lotto!!

Thanks for sharing this as scary and downing as it is. Human follies are a fact of life and I probably have my lion's share of it.

wwWinter
August 29th, 2006, 9:57am
nobody said winning makes ya smart!

financial planning works wonders!
;)

Donald Robertson
August 29th, 2006, 10:04am
I would like to see a study done on a 100 winners of a million or more. I bet most of them are living quitely with fat bank accounts and fewer worries for the future. We do not hear about the people who use it senibly they do not make the news.

bwanas
August 29th, 2006, 10:11am
You always hear about the bad stories. Many winners put money towards good things church charities and such, but just like the news channels, people have more interest in bad news so thats what eveybody talks about.

Christine1225
August 29th, 2006, 10:14am
It is amazing how much bad luck has come to lottery winners after they won a jackpot. Death, suicide, murders, bankrupcy, divorce and lots of headaches. I'm greatful for my DVD and CD wins.

TawnyNY
August 29th, 2006, 10:23am
Hate to be judgemental, but if you're a loser when you win a big lottery-you'll still be a loser. Winning the lottery doesn't give you a set of brains.

DDFuller
August 29th, 2006, 10:23am
You always hear about the bad stories. Many winners put money towards good things church charities and such, but just like the news channels, people have more interest in bad news so thats what eveybody talks about.
That's true. They don't talk about all the good stuff, that would be boring. People like to hear all the dirt! At least that is what the news people think.

TawnyNY
August 29th, 2006, 10:25am
It is amazing how much bad luck has come to lottery winners after they won a jackpot. Death, suicide, murders, bankrupcy, divorce and lots of headaches. I'm greatful for my DVD and CD wins.


I'm not surprised because it's not bad luck, it's bad decision making and bad choices. They still would have had those problems being poor.

You are what you are.

Having money doesn't make you any wiser.

TawnyNY
August 29th, 2006, 10:29am
Winning Lotto....well, guess I would be one of those people who would be broke in no time. I would give it all away. I know too many people with special needs that could be helped if only for a short time. I know too many good decent people who have struggled all their lives and never had much to show for it, I would give them a dream played out for once in their lives because they deserve it. I would move alright, only because I hate it here, this place has too many bad memories..but I would buy a little log cabin deep in the woods with a little lake and maybe a place for a garden and my own power system. That to me, is the real American dream. Isnt it amazing that we all have different perspectives on life and money? Coarse thats what makes the world, the world. Just my take on things I guess.


I know a lot of people that won't bother with the small jackpots because "they can't take care of their whole family with such a small amount of millions".

???? Take care of yourself first, who's to say your family and friends would take care of you if they won. You can live quite nicely for the rest of your life on a jackpost of only $5 million if you do it right.

Jodimae
August 29th, 2006, 10:32am
Other than my husbands parents, my parents and my sisters I wouldn't give anyone a dime. A true friend will be your friend whether you give them money or not. I would take my friends places and do things with them, but not fork over cash to them.
I would buy the modular I live in now, and a truck.. which we really need for the race car and around here. The rest, I would save and live as I live now... bill to bill shut off notice to shut off notice. :frown3:

TawnyNY
August 29th, 2006, 10:33am
That's just plain stupidity- the way some people throw the winnings around.

Shoot, if I were ever lucky enough to win the lottery, I wouldn't tell ANYONE.

I don't know where you live but in NY before they give you the check, you have to sign a publicity form allowing them to announce your name.

noelleray
August 29th, 2006, 10:34am
i had it planned out,i'd stay here in my apartment until the lease is up,not tell anyone outside my dad,brother,and best friend. would contact a good financial planner and insure my daughter,nephew and niece had college money set aside. buy a car,and finish college, after that,then i'd look into a house. i'm frugal,i'd hope i'd stay that way . i know my mother was impressed when a local woman won over $100 million in the lottery,and on the news she said the first thing she did was call the investment guy from the local news,Westy. he was a 80ish old man,and i remember seeing him on the news since i was little talking about investments and money matters. he was interviewed and said when he hung up from that phone call about what advice he could give,he had to go have a big drink...lol. but my mom said that was the smartest thing she ever heard a lottery winner do,call for advice before she even told family.

bjdotson
August 29th, 2006, 10:42am
My wife has promised that if I ever win 10 million or more, she's going to raise my allowance from $10 a week to $20. Hmmm hope I don't go crazy with the extra.

loved1
August 29th, 2006, 10:46am
Have to agree w/ the title "No Sympathy." Winning a lot a money doesn't save you from bad judgment - it just gives you room to make a harder fall.

You have to reach a point where you're willing to be respected & not always liked. I used to work in a brokerage firm & one of the biggest lessons I learned there is to always pay yourself first, even it's nothing more than $10 every 2 weeks - it's not the amount of money, but the habit of setting something aside. I think I'd be the perfect lottery winner, because I'd be more than willing to say no.

It's much more likely that my mother would hit the lottery because she plays on a regular basis, but I always tell her that I would have to be her gatekeeper. She says she would not tell anyone, but it's clearly printed on the ticket that they can use your image for publicity and moreover it's a government enterprise.

W/ the story below, I just cannot feel bad for someone who had so much and just blew it. And winning millions of dollars is everything it's cracked up to be!

pumpkinpie516
August 29th, 2006, 11:01am
Last year, one of my hubby's customers won the Powerball for $59 million. The guy and his family walked away with $24 million after the lump sum and taxes were taken out. My hubby was friendly with this customer before his BIG win and still is friendly with him. The Powerball winner has told my hubby how the past year has been for him and he and his family could'nt be happier. At the time of the BIG win they were living with his parents because he was laid off and times were tough. He is now building a $600,000 house 2 blocks away from us. He also bought a house in Cape Cod and we spent some time them this summer, because we were vacationing in the same area. He decided not to work anymore and his wife quit her job. They spent the summer in the Cape with their kids. We got a tour of their million dollar house in the Cape and of course it is gorgeous! It's not a mansion, maybe 3000 square feet, roomy, comfortable with 4 bedrooms and 3 baths. The bought 2 trucks, a family car,and a sports car. They did hire a Financial Advisor, made alot of investments in Real Estate and they are apparently earning alot of money in interest to keep them comfortable for life. This couple is being very level-headed with their fortune, and winning the Powerball could not have happened to a nicer family. They are down to earth and their kids are sweet, kind and respectful. I was very impressed with this family and I wish only the best for them in the future. :)

marthajane
August 29th, 2006, 11:28am
I actually know two people who won the state lottery -- each won about $3 million and both took it over a period rather than lump sum (at least I know for sure one did). The one person I know better didn't really change her /their life that much -- they still live in the same house, etc. but drive somewhat nicer cars and she got her teeth fixed. But she told me that her husband's family hardly speaks to them now, because they didn't just hand over money or buy them all cars. (She didn't have much family.) I think they handled it appropriately, but still it wasn't all smiles & sunshine. The other person was older & already retired -- I know they bought a motor home, but don't think they really went all out either. I'm like most people -- I'd sure like to try it!!

Taminar
August 29th, 2006, 11:35am
First, about taxes - the Florida Lottery holds out 28%, I believe it is,
on big Lotto wins. If I won big, now that I'm almost 41 years old, I
would talk to an accountant about the tax liability on the annual
payments vs. the lump sum.

Up to now, I've always thought that I would take the annual payments.
Now, I'm not sure.

When you win the big Lotto, you get maybe a third of the "estimated
jackpot" if you take the lump sum. That's because the lottery agency
starts with a smaller amount that they invest. Part of your winnings,
if you take the annual payments, are the interest payments they earn.
Some financial experts say you can make more in the long run by
taking the smaller lump sum and invest it yourself. Maybe they
could, but so far, I haven't had the best of luck when I've tried to
invest money.

Also, Congress keeps talking about changing the tax code, maybe going
to a national sales tax or a flat tax instead. I'd sure hate to take my
lump sum, pay the IRS a huge amount, then turn around and have to
pay a 20% sales tax on everything I bought.

So, with a positive outlook that I'll live to be 75, at this point, I'd still
strongly consider taking the annual payments.

That said, if I won the Lotto on a week that it was $20 million, just for
an example, the first thing I'd do, still, is talk to an accountant. I'd
change my phone number to unlisted. I'd talk to a builder about my
dream house and try to get a contract in place for construction. I'd see
what the options were for claiming the money without using my name
(like creating a trust fund or something) Then I'd go to Tallahassee for
my check.

Once I had the money, I'd pay off the car and the mortgages. Those
are really the only bills we have. We pay off the credit card every
month anyway. I'd look into paying off my parents' bills, and my husband
might want to do the same for his parents (I say "might" because they
didn't always treat him as fairly as they might have). My dad is
dying of cancer and when he dies my mom will only have her social
security to live on. So, I'd assure my mom and dad that she will always
be taken care of. That'll take a big burden off them.

Once I get those financial affairs in order, I'd donate to a few non-profits,
in particular Covenant Hospice, the American Cancer Society, the local Wildlife
Rescue & Sanctuary, and the Humane Society.

I'd like to buy some little patches of undeveloped land in neighborhoods
and turn them into "green spaces" for wildlife. With all the growth, wild
animals have fewer places they can live, so I'd like to go into those vacant
lots and add plants that would feed rabbits and squirrels and birds, maybe
put out salt licks, or design little natural looking ponds where they could
drink. I'd like to get the area schools involved so maybe the children
would appreciate it and not litter there or tear it up with their bikes and
skateboards. That's big dream number one, which wouldn't take a lot
of money, because I could choose inexpensive properties and only buy
what I could afford.

Big dream number two is building a movie studio and an old-fashioned
movie palace theatre for art house/indie films and premieres. That would
take a huge investment. That's more for if I won the powerball. LOL!

briandnewman
August 29th, 2006, 11:39am
I guess it proves the brains are not needed to win the lottery just luck.
Well at least they spent it all before they died:-) that's what money is for.
Taxes were I am at are 45% if you win (FED and State Top Bracket).
So winning lump sum payment * .55 =in the bank.
It also blows my mind that nobody take the annuity payments.
Risk free, easy to budget, and likely more money. (You need to invest very smartly at a very high interest rate to make up for the principle difference and come out ahead).

jldbrooklyn
August 29th, 2006, 12:00pm
Here's how it works.

When a lottery advertizes a price of say $ 10 Million dollars, they are giving you $ 10 million dollars including twenty-six years of annuity interest. If you choose a lump sum payment you will receive the amount of money the lottery would have to invest in order to pay you $10 million over 26 years, usually that's around half.

Then they take out taxes, federal (and depending on where you live) state and local taxes. Let's take my locatiion for example, New York City.

Federal withholding is 28%, New York State Income Tax is 6.85% and New York City income tax is 3.68 % So that's !.4 million in taxes to the Federal Govt. $342,500 to the State of New York and $ 184,000 to the City of New York.

So if you live in New York City and you win a "$10 million" dollar prize you woud receive about $ 3,073,500. Which is not so much money when you consider that the average apartment in Manhattan is $1.5 million.

Obviously the problem these people encounter is living like they are rich, when in fact they are just a little more comfortable.

wintermom29
August 29th, 2006, 12:09pm
for anyone who was lucky enough to win a bunch of $$$$ in a lottery and ended up on foodstamps.serves them right for being morons!
the first thing you do is GET OUT OF TOWN.no phone,no relatives,no contact with anyone.
take a vacation and plan for the future.
don't start handing out money to anyone just for asking.why should you?where were they when you were broke?
find a trustworthy financial advisor(good luck with that!)
might be a good idea to incorporate yourself for tax purposes.




Totally agree, I would move out of state me and my husband and daughter and help our mom and grandmother and thats it, we will be out :laugh: . We can make that money last the rest of our lives, :cheer7: .

secular
August 29th, 2006, 12:20pm
That's just plain stupidity- the way some people throw the winnings around.

Shoot, if I were ever lucky enough to win the lottery, I wouldn't tell ANYONE.

I don't even tell my family when I win here except for DH. None of their business and it would be the same with the lottery. I would live as if we got a raise not as a "millionaire".

briandnewman
August 29th, 2006, 12:32pm
[QUOTE=jldbrooklyn]Here's how it works.

Fed Tax is 35% for 319000 or more not 28%

Federal withholding is 35%, New York State Income Tax is 6.85% and New York City income tax is 3.68 % So that's 1.75 million in taxes to the Federal Govt. $342,500 to the State of New York and $ 184,000 to the City of New York.

So if you live in New York City and you win a "$10 million" dollar prize you woud receive about $ 2,723,500. Which is not so much money when you consider that the average apartment in Manhattan is $1.5 million.

QUOTE]

chestnutfall
August 29th, 2006, 12:33pm
Hi, boy if we won the lottery I would be greatful. I would thank God and pray for direction. First, I wouldn't allow the lottery to publish my name or other info. in are area it isn't public knowlegde. I think that if you let the cat out of the bag it complicates the situtation. I guess it also depends on how much you win. If you get $50,000 a year (20 years) then we would pay off our one Visa, set up a reitrement account, set up a trust for our only child. Continue to work.Give some to our church.Then have a plan set up on an annual basis to have a set % amount set aside for our extended families & Pay down on the house, (if more than $50,000 a year then ---We would pay off our current home. Set up retirement accounts, set up a trust fund for our college student. Set aside a % every year for our extended families. Since they wouldn't know that we had money then at some time down the road when they have emergencies or are to retire I would go to the accounts and give them all a flat $$ amount at the same time. New heat/cooling system, flooring and windows, and installation. Not borrow any more money for our college students education. Give some money to church and other chairities. I would start setting money aside for buying real estate to generate continued income. I would some day like to own some pristine acreage in one of these spots: Montanta, Oregon, Northern California, Wyoming or somewhere else that is spectacular like western Canada. I'm glad to know a good tax attorney and CPA. I think the key is to take time to consider your future, continue to live about the same life you've been living for at least a year but sprinkle a small amount aside to blow (about 3.5%) So if you have $50,000 a year after taxes then that is $1,750. (less than some folks monthly mortgage payment) Just the piece of mind to know that if you plan ahead then you could actually have a retirement. I know that a lot of folks who win are stupid about it, the get money drunk. The key is conserative restraint and of course luck.

jldbrooklyn
August 29th, 2006, 12:36pm
[QUOTE=jldbrooklyn]Here's how it works.

Fed Tax is 35% for 319000 or more not 28%

Federal withholding is 28%, New York State Income Tax is 6.85% and New York City income tax is 3.68 % So that's !.4 million in taxes to the Federal Govt. $342,500 to the State of New York and $ 184,000 to the City of New York.

So if you live in New York City and you win a "$10 million" dollar prize you woud receive about $ 3,073,500. Which is not so much money when you consider that the average apartment in Manhattan is $1.5 million.

QUOTE]
The New York State Lottery says that they withhold 28%. From their website..

http://www.nylottery.org/ny/nyStore/cgi-bin/ProdSubEV_Cat_202538_NavRoot_307.htm..

"The Lottery is required to report and withhold taxes according to the regulations of the Internal Revenue Service and the New York State Department of Tax and Finance.

The current tax withholding rates are:
Required Federal withholding 25%
Federal backup withholding 28%
Federal Non-resident Alien withholding 30%
New York State withholding 6.85%
New York City withholding 3.648%
Yonkers withholding .685%

Maybe they only withhold 28% for some reason or their information is out of date.

briandnewman
August 29th, 2006, 12:44pm
[QUOTE=briandnewman]
The New York State Lottery says that they withhold 28%. From their website..

"The Lottery is required to report and withhold taxes according to the regulations of the Internal Revenue Service and the New York State Department of Tax and Finance.

The current tax withholding rates are:
Required Federal withholding 25%
Federal backup withholding 28%
Federal Non-resident Alien withholding 30%
New York State withholding 6.85%
New York City withholding 3.648%
Yonkers withholding .685%

Maybe they only withhold 28% for some reason or their information is out of date.

They withhold 28% but you still got to pay 35%. That's just so you don't skip the country

jldbrooklyn
August 29th, 2006, 12:47pm
[QUOTE=jldbrooklyn]

They withhold 28% but you still got to pay 35%. That's just so you don't skip the country

Thanks for the clarification.

bjdotson
August 29th, 2006, 12:57pm
An additional point on the lump sum vs annuity

Say you win a 20 million dollar jackpot and decide to take it as an annuity over 20 years. Two years down the road you have a heart attack and die. Your heirs, even though they'll only get a million dollar check for the next 18 years owes the IRS the tax on the ful 18 mill.

Depending on the deal they make with the IRS, they could end up just getting a few thousand a year.

If you take the lump sum, your heirs will still be taxed; but they will have the lump sum to pay (no interest to the IRS)

There are many options before you accept the money so it is important to talk to a tax advisor before you make ANY decisions.

briandnewman
August 29th, 2006, 12:57pm
One interesting note Canadians don't pay any taxes on lotto winnings.

jldbrooklyn
August 29th, 2006, 1:02pm
An additional point on the lump sum vs annuity


There are many options before you accept the money so it is important to talk to a tax advisor before you make ANY decisions.

In New York you have to select a payment option when you buy the ticket.

bkang
August 29th, 2006, 1:05pm
I was lucky to meet a man who won a 2million lotto, he treated all of us the comedy club, dinner and drinks, his wife retired, he kept working, they changed their number before claiming their wins (a great suggestion) to an unlisted number, kept their house, paid it off, hired a financial expert and well he lived well until the cancer, he died, but his wife and kids were taken care of! If I ever win I'll have to do it like he did (of course I better go buy a ticket one of these days to have a chance).

briandnewman
August 29th, 2006, 1:29pm
An additional point on the lump sum vs annuity

Say you win a 20 million dollar jackpot and decide to take it as an annuity over 20 years. Two years down the road you have a heart attack and die. Your heirs, even though they'll only get a million dollar check for the next 18 years owes the IRS the tax on the ful 18 mill.

Depending on the deal they make with the IRS, they could end up just getting a few thousand a year.

If you take the lump sum, your heirs will still be taxed; but they will have the lump sum to pay (no interest to the IRS)

There are many options before you accept the money so it is important to talk to a tax advisor before you make ANY decisions.

That doesn't sound right, IRS doesn't tax you now for future earnings (or do they?). just the principle which is hardly full 18 mill. Also if you care about your kids you buy Life Insurance which easily protects against this scenario.
If you do want to give it away start a trust because Gift, Death, and Inheritance taxes are very high!
You are correct about the tax advisor though. I wonder if any of the winners that lost all did that.

suelee000
August 29th, 2006, 2:22pm
That doesn't sound right, IRS doesn't tax you now for future earnings (or do they?). just the principle which is hardly full 18 mill.
If you do want to give it away start a trust because Gift, Death, and Inheritance taxes are very high! Also if you care about your kids you buy Life Insurance which easily protects against this scenario.
You are correct about the tax advisor though. I wonder if any of the winners that lost all did that.

Caveat, I'm not a tax expert.

The IRS taxes the full value of the annuity at the time of your death. For example, if the annuity is $20 million and the lump sum is $10 million and you die that day after you receive the annuity, my guess is that the annuity is worth $10 million, the amount that the lottery commission had to pay for it. However, this is high finance and you need some really good tax expert to work it all out.

However, estates worth less than $2 million aren't taxed at all. Estate taxes run about 45%. Sort of, it goes down every year until 2010 and then it goes back to what it was in 2000.

1) Remember that they don't withhold enough to pay ALL the taxes. Figure that after all of the taxes have been paid, you will receive 25% of the jackpot. In other words, if the jackpot is $10 million, you will get $2.5 million after taxes. A nice sum, but not enough to retire at 40.

2) Change your phone number and address. By law, the lottery publishes your name and hometown. If you're in the book, you become a target for every scam artist in a three state area.

3) Take some time to see what you need to do. Small jackpots mean that your lifestyle may improve, but you can't quit your day job. $2.5 million goes a long way if you still have a day job that pays for benefits such as health and retirement and keeps you busy so that you don't spend all day shopping and taking expensive vacations. If you quit your job, that $2.5 million has to pay for expensive new toys, vacations, health, retirement, college for the kids, new house, helping out the family, tithing, etc. Sounds like alot, but it isn't going to go that far, especially if you are under 50.

If I won, depending on how much I won.

$2.5 million
Big chunk into savings and mutual funds
Keep my job
Up my retirement and IRA contributions
New car. The 10 year old Honda would go to my nephew.
Buy a new house.
Move
Large donation to the endowment of the University that I work for.
Fix up the old house and then sell it.

$5 million
same as above but maybe a nicer house and car
Perhaps early retirement (especially if I've really upped my retirement contributions)

$10 million
At this point, I would probably consider really early retirement (now)

briandnewman
August 29th, 2006, 2:34pm
Back to the main topic.

The people that lost it all had no plans for the future, no concept of what they actually won (1 MILLION DOLLARS = 250,000), and no understanding that a pile of money doesn't last for ever. So no one feels bad for them now. :frown3:

"Winning the lotto isn't all it's cracked up to be" is true because you never get what they advertise (except in Canada) and you can't buy Lamborghini and mansions with a million dollar prize. But it can definitely make life easier and more enjoyable. More money, more problems is a situation I would not mind being in and I can handle that.

Also I hope the lady that could not say NO :worry: dosen't have any kids or win the lotto again.
Selling coke and murder those people have no common sence. What a waste.

einnhojb
August 29th, 2006, 2:35pm
People just have to be smart with the money. My husband and I aren't materialistic. We have talked about this before and agreed if we won big we would get a home around 250,000 (what we are trying to get into now) and two new cars a chystler and a mazda (not over luxury cars). The only gambling we do is lotto and that's only $4-$8 a week.

We are not into expensive brand name clothes or items. We would put the rest into savings to build interest, and away for the children's education.

Our dream of winning big is mainly to get a second chance. We messed up our credit in college and learned a big lesson. Now that we have a family and want to move on, get a home, we can't.

We are not stingy or penny pinchers but we are not afraid to say NO to others either!

ResourcePress
August 29th, 2006, 2:44pm
I have a plan for when I win and that includes hiring a financial advisor. We had friends who earned a 2 million dollar jackpot and we learned a lot by watching them. They splurged in moderation and invested so that they are set for the rest of their lives.

It all depends upon how the windfall is handled.

yadgirl
August 29th, 2006, 2:46pm
Entering Sweeps Has Never Been About Money To Me. I Like The Structure, The Rules, The Challenge, And The Comradarie.


Sure I Like Winning Too, But If I Won A Huge Cash Prize, I Wouldn't Know What To Do With It.

Yad

lvanhook
August 29th, 2006, 2:58pm
My wife has promised that if I ever win 10 million or more, she's going to raise my allowance from $10 a week to $20. Hmmm hope I don't go crazy with the extra.



:laugh: :laugh: :laugh: Thats what my dh said........

mickeyirish69
August 29th, 2006, 3:00pm
well seeing as I have no family other than my son and no friends other than ones I meet online I would really like to have that chance.
Really though I have learned to not have expensive tastes. If I won a million I would buy a nice farm house with 10 or 20 acers and fix it up and get a new car, maybe a horse and then invest the rest. Most likely end up spending 300,000 and thats including keeping a few hundred thousand to pay utilities and such for the next few years. Thats would still leave me will 300,000 after taxes to invest.
out of that 300,000 I was keeping a would also help some low income charitys for I know what its like.

ttm
August 29th, 2006, 3:36pm
So true, but I would be willing to give it a try :cheer7:

lotsofspam
August 29th, 2006, 4:07pm
First, I wouldn't allow the lottery to publish my name or other info. in are area it isn't public knowlegde. I think that if you let the cat out of the bag it complicates the situtation.

Sorry. That's not going to happen. In California(and probably most other state lotteries) that information is public information. Your
name, the name and location of the retailer who
sold the winning ticket, the date you won, and
the amount of your winnings, including your
gross and net installment payments, are matters
of public record and are subject to disclosure.
The Lottery may release additional information
if legally mandated or upon your request. See CA Lottery handbook (http://www.calottery.com/NR/rdonlyres/A549E4DF-C342-4D94-98B9-E3B4F17E2D8A/0/2004WinnersHndbkfinal.pdf)
You are going to have to either accept that the local newspapers will publish your name or just pass up the prize. Your fantasy of being a anonymous lottery winner is just a dream. Of course you don't have to discuss your win with the media if you don't want to but chances are word will quickly spread to friends and family that you won a large jackpot. You could always take a vacation for a few months until the media frenzy subsided.

So far as lump sum vs. the annuity I think that most people would be better off with the lump sum. The reality is that if it is a large jackpot (10 Million+) even your annual payments will far exceed the threshhold for the top bracket. Even a good tax attorney can only lower your tax liability so much without blantantly breaking the law. In order to answer that question you have to predict what the tax system will look like for the next 20+ years. Even the best accountant will have a tough time giving you an accurate answer. Given history, however, I think over the next 20 years marginal rates will likely be higher than they are today. So far as investing the lump sum is concerned it shouldn't be that difficult. California 's annuity option is 'invested' in federal treasury bonds. Not exactly high yield. If after 26 years your investments have failed to keep up with treasury bonds your financial literacy probably isn't much better than these people that lost their jackpots.

The issue of estate taxes is largely moot unless you plan on leaving a large inheritance to your heirs.

Part of the problem that most people that get a large windfall(lottery winners, pro athletes, etc.) have is that they often don't realize how far such money really goes. A lump sum of a million really isn't that much after taxes. A lot of places median housing prices exceed 300K. You spend ~500K on a house that isn't even that big and you won't have much left over taxes. Even a $100 Million jackpot is still finite and can still be lost if used poorly.

bjdotson
August 29th, 2006, 7:33pm
That doesn't sound right, IRS doesn't tax you now for future earnings (or do they?). just the principle which is hardly full 18 mill. Also if you care about your kids you buy Life Insurance which easily protects against this scenario.
If you do want to give it away start a trust because Gift, Death, and Inheritance taxes are very high!
You are correct about the tax advisor though. I wonder if any of the winners that lost all did that.


The problem is that the VALUE of the inheritance not the actual money is what is taxed. They inherited something worth 18 million and it's irrelevant when they get the money. It's not "future earnings" because it's not earning at all.

bev1132
August 29th, 2006, 7:33pm
my wish for winning money is so i can afford the comfort level it would allow me.
then and only then i would let anyone share my good furtune with.
i know it wont buy love, respect, ect. but it would buy a comfortable existance.

billbb
August 29th, 2006, 7:53pm
The problem is that the VALUE of the inheritance not the actual money is what is taxed. They inherited something worth 18 million and it's irrelevant when they get the money. It's not "future earnings" because it's not earning at all.

In Oregon, if you take the annuity, the lottery will continue to make payments to those you designate when you claim your prize or according to your will. they deduct 35% from the annual checks for taxes. Actually, the State owns the money until they give you your check, therefore, they are only taxed when they receive the check.

Bill

nvtribefan
August 29th, 2006, 7:57pm
hmm - 1 million- say it's paid $50k per year for 20 years.
After taxes, ~35k per year.
Maybe a nice 1 week vacation each year @ ~$5k
Just a nice $30k annually to sock away for retirement.
Certainly not enough to alter the old living standards.

But I certainly wouldn't complain!

Rokki
August 29th, 2006, 8:08pm
"I won the American dream but I lost it, too. It was a very hard fall. It's called rock bottom," says Adams. "Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language -- 'No.' I wish I had the chance to do it all over again. I'd be much smarter about it now," says Adams, who also lost money at the slot machines in Atlantic City.

I never saw a slot machine with a hand before. :rolleyes:

tlak
August 29th, 2006, 8:40pm
If you notice, they post 5-10 loser stories. there are a lot more winners than five or ten. It makes more news to hype these stories, than to say, everybody's doing great and living happily ever after.
I've heard the lottos offer counseling, and if somebody doesn't take advantage of that, oh well.
If I won small, substantial, I would be more happy with an extra thousand a month, than some big toy.

tlak
August 29th, 2006, 8:47pm
te:
Originally Posted by bjdotson
An additional point on the lump sum vs annuity

Say you win a 20 million dollar jackpot and decide to take it as an annuity over 20 years. Two years down the road you have a heart attack and die. Your heirs, even though they'll only get a million dollar check for the next 18 years owes the IRS the tax on the ful 18 mill.

Depending on the deal they make with the IRS, they could end up just getting a few thousand a year.

If you take the lump sum, your heirs will still be taxed; but they will have the lump sum to pay (no interest to the IRS)

There are many options before you accept the money so it is important to talk to a tax advisor before you make ANY decisions.





That doesn't sound right, IRS doesn't tax you now for future earnings (or do they?). just the principle which is hardly full 18 mill. Also if you care about your kids you buy Life Insurance which easily protects against this scenario.
If you do want to give it away start a trust because Gift, Death, and Inheritance taxes are very high!
You are correct about the tax advisor though. I wonder if any of the winners that lost all did that.
Acutally the scenerio that bjdotson posted was true. Depending on the lotto, some changed their rules in case of this, so that the heirs could pay the IRS

tupik3702
August 29th, 2006, 9:04pm
He was into drugs and bought alot for himself along with new this and that. He got caught several times with drugs and the last time he went to jail. He made someone in his family his head of his estate while in jail. They refused to bail him out as he needed help to rehab. His family wanted to borrow money for this and that ....well not much left and he just got out of jail. Sad case! :worry:

Peg152
August 29th, 2006, 9:32pm
wonder if they sold their overpriced home yet?!
http://money.aol.com/cnnmoney/reale...627161909990001

einnhojb
August 29th, 2006, 9:39pm
In most places, you can claim the money under a trustee and your name won't be the one published, just the company. That is what the people did in Oklahoma that won the huge powerball prize.



Sorry. That's not going to happen. In California(and probably most other state lotteries) that information is public information. See CA Lottery handbook (http://www.calottery.com/NR/rdonlyres/A549E4DF-C342-4D94-98B9-E3B4F17E2D8A/0/2004WinnersHndbkfinal.pdf)
You are going to have to either accept that the local newspapers will publish your name or just pass up the prize. Your fantasy of being a anonymous lottery winner is just a dream. Of course you don't have to discuss your win with the media if you don't want to but chances are word will quickly spread to friends and family that you won a large jackpot. You could always take a vacation for a few months until the media frenzy subsided.

So far as lump sum vs. the annuity I think that most people would be better off with the lump sum. The reality is that if it is a large jackpot (10 Million+) even your annual payments will far exceed the threshhold for the top bracket. Even a good tax attorney can only lower your tax liability so much without blantantly breaking the law. In order to answer that question you have to predict what the tax system will look like for the next 20+ years. Even the best accountant will have a tough time giving you an accurate answer. Given history, however, I think over the next 20 years marginal rates will likely be higher than they are today. So far as investing the lump sum is concerned it shouldn't be that difficult. California 's annuity option is 'invested' in federal treasury bonds. Not exactly high yield. If after 26 years your investments have failed to keep up with treasury bonds your financial literacy probably isn't much better than these people that lost their jackpots.

The issue of estate taxes is largely moot unless you plan on leaving a large inheritance to your heirs.

Part of the problem that most people that get a large windfall(lottery winners, pro athletes, etc.) have is that they often don't realize how far such money really goes. A lump sum of a million really isn't that much after taxes. A lot of places median housing prices exceed 300K. You spend ~500K on a house that isn't even that big and you won't have much left over taxes. Even a $100 Million jackpot is still finite and can still be lost if used poorly.

SillyLilly
August 29th, 2006, 9:52pm
In most places, you can claim the money under a trustee and your name won't be the one published, just the company. That is what the people did in Oklahoma that won the huge powerball prize.

A guy here in Idaho won the largest powerball ever last year, over $300 million or something. Anyway, the news reported that he consulted with attorneys to find a way to remain anonymous but couldn't. I did a bit of research, and the only state I found that sells Powerball that lets winners remain anon is Delaware.

I STILL think there's gotta be a way to stay anonymous. I sure hope so, because when I win I don't want anybody to know. If I do have to use my name, the first thing I'll do is move and get a mail drop for my address. I'll keep my old phone number but just have it ring to a voice mailbox. That way I can see how many old "friends" call to try to get a piece of it. :laugh:

Hmmm, I'm wondering how long it takes to get a legal name change? I wonder if I could get my name changed within the 6 months before the ticket expires. Then claim the ticket and no one would know it was me. Then maybe change it back or change it to something totally different.

jldbrooklyn
August 30th, 2006, 10:49am
Hmmm, I'm wondering how long it takes to get a legal name change? I wonder if I could get my name changed within the 6 months before the ticket expires. Then claim the ticket and no one would know it was me. Then maybe change it back or change it to something totally different.

No luck there, name changes are published in the paper by court order, at least here in New York.

SillyLilly
August 30th, 2006, 11:05am
No luck there, name changes are published in the paper by court order, at least here in New York.

Yeah, here too. But who reads 'em? As soon as my numbers came up I could put in for the name change and no one would know me from Adam, so who'd remember even if they did read it? Well, I guess a few people who know me would know, but I'd think my chances are really good that no one who knows me would read it.

Oooh, here's an idea. Move to another city and change my name there. Heck there's a little city with it's own paper just 20 minutes from here where nobody knows me. Or I could get over the state line in just an hour from here. Get it published in an out-of-state paper.

So anyone know how long it takes to change your name?

TawnyNY
September 2nd, 2006, 9:46pm
[QUOTE=SillyLilly][SIZE=2]Yeah, here too. But who reads 'em?


The same people that read the obituaries of people they don't know, delinquent property tax notices, judgements, bankruptcies, real estate transactions etc., especially if you live in a small town or city and people like to know everybodies business.

xaipre
September 3rd, 2006, 12:23am
Just read in my local paper a few days ago about a man who won the state lottery a few years back. This year is his last payment, and he doesn't know what he will do, becuase on the day his payment comes in the crack dealers line up outside his front door, and he blows all his money within months on drugs.

On the other hand, he split his payments with his 2 sisters, and they have used the money wisely, getting out of debt, setting up college funds, etc. He realizes now that he has wasted the "american dream", but its a bit too late.

So sad... my aunt always plays the lotto, and she already has planned out exactly how much of the money is going into what and to who if she ever wins. And she has told the family up front. I pray that she wins since she has promised to pay off all my interest-bearing student debt, which would be a hige help. I have taken a page out of her book and made up my mind that if I should win something big sweepstaking, a portion will, after my personal debts, go towards my mom and my aunt to help make their life better, because they have done a lot for me.

BabyLeaps
November 26th, 2006, 1:30pm
Hate to be judgemental, but if you're a loser when you win a big lottery-you'll still be a loser. Winning the lottery doesn't give you a set of brains.

WELL PUT!

BabyLeaps
November 26th, 2006, 1:34pm
A guy here in Idaho won the largest powerball ever last year, over $300 million or something. Anyway, the news reported that he consulted with attorneys to find a way to remain anonymous but couldn't. I did a bit of research, and the only state I found that sells Powerball that lets winners remain anon is Delaware.

I STILL think there's gotta be a way to stay anonymous. I sure hope so, because when I win I don't want anybody to know. If I do have to use my name, the first thing I'll do is move and get a mail drop for my address. I'll keep my old phone number but just have it ring to a voice mailbox. That way I can see how many old "friends" call to try to get a piece of it. :laugh:

Hmmm, I'm wondering how long it takes to get a legal name change? I wonder if I could get my name changed within the 6 months before the ticket expires. Then claim the ticket and no one would know it was me. Then maybe change it back or change it to something totally different.

Hmmmm...I believe some of the Poweball winners have their attorney pick up the check/sign the papers in the name of a trust.

http://www.powerball.com/powerball/pb_stories.asp

LeslyS
November 26th, 2006, 1:44pm
OK, I think I'm a realist about winning the Lottery...

I'm ready to buy whatever my mother wants. I figure I won't actually have any money to spend on myself...

Kind of takes the fun out of winning the lottery doesn't it?

flared0ne
November 26th, 2006, 2:43pm
I haven't researched what other states are doing this, but Florida has just started a new type of lottery -- more of a raffle, actually -- where they sell 1,250,000 tickets for $20 each (raising $25,000,000), then draw raffle numbers for the following winners:

10 people win $1,000,000. (odds of 1:125,000)
20 people win $100,000. (odds of 1:62,500)
100 people win $10,000. (odds of 1:12,500)

a total of 130 prize winning numbers will be drawn, and
the overall odds of winning a prize are 1:9,615...

Note -- the state collects $25,000,000, pays out $13,000,000, and keeps $12,000,000.
Not a bad return on THEIR efforts.

Interestingly, according to the rules, there's no mention of anything but a lump sum payment (minus federal withholding taxes). Also, if one of the $1,000,000 winners doesn't claim their prize (within 180 days), the Lottery commission starts going down the list (in order of drawing) of $100,000 prize winners, attempting to contact them. IF they make contact, that alternate winner gets an additional $900,000. The not-so-obvious loophole is that the Lottery commission does NOT (at least according to the rules) hand off the remaining $100,000 (look at the numbers) to anyone (like the first one of the $10,000 winners, say)...

They are correct, in their advertising, etc -- this does appear to be about the best odds around for winning a respectable payout!

(if you think about it, these odds are better than what WE encounter daily with sweepstakes, and people win HERE often enough to be noticable!!)

SillyLilly
November 26th, 2006, 2:48pm
Hmmmm...I believe some of the Poweball winners have their attorney pick up the check/sign the papers in the name of a trust.

http://www.powerball.com/powerball/pb_stories.asp

Hmmm, that's good to know. I guess you can't always believe everything you hear on the news. I hope you can get the attorney to do it all, because when I win (and I will win) this will make it much more simple.

tledbetter
November 28th, 2006, 1:25pm
A couple of the lottery winners in my area remained anonymous by putting the money in a trust. So when the media announced the win they mentioned the trust, and the city the winner was from but not the winner's name. Sounds like a good idea. Then only the people you want to know will know...

As far as people losing all their money...dumb people win the lottery just as often as smart people.

tamiwami
November 28th, 2006, 1:41pm
the people in those stories are just dumb. There is no way I would go broke after winning millions. :worry:

SillyLilly
November 28th, 2006, 2:19pm
the people in those stories are just dumb. There is no way I would go broke after winning millions. :worry:


There's no way I'd go broke either. I already have it planned that when I win the powerball tomorrow half will go to taxes which will leave 18 million. Then 3 goes to charity which leaves 15 million. So I'd invest 9, and of the remaining 6 million I'd spend 4.5 on a house, half million or so on furnishing and decorating, put 200k away to pay my bills for the next year, and with the 700k or so left I'd buy a new car, travel, get plastic surgery and dental work, buy a few friends some baubles, and just plain blow tens of thousands on nothing at all just to see what it feels like.

A year later, I'd have a minimum of 900k (minus taxes) each year just from interest on my investments. With half million income each year, I could buy a really nice second home in a warm climate, travel, buy a new car every year (not that I would, but I could), give to charity, etc. There's no way I'd spend more than that, and I'd just keep the principle invested and working for me. How could anyone go broke with that much income????

http://www.emotihost.com/glass6/6.gif

mferdin
November 28th, 2006, 2:30pm
I happen to no how to say the word " NO" very well!! I think I could handle the burden:P

Harley4jmj
December 3rd, 2006, 1:40pm
Like everyone else here...I have thought and dreamed about it long and hard. I play regularly with the same numbers. I believe like most, the key is to be totally closed mouth about it. Collect the money under a trust and only the wife and I know. Don't tell kids, parents, friends. let the trust hire a mediator to give certain amounts of money to family, friends and people in need. That way you don't lose family and friends and you dont gain any new ones just for money. It would be difficult...but, I don't see any other alternative.

Mike

ksmith47
December 3rd, 2006, 2:10pm
Like everyone else here...I have thought and dreamed about it long and hard. I play regularly with the same numbers. I believe like most, the key is to be totally closed mouth about it. Collect the money under a trust and only the wife and I know. Don't tell kids, parents, friends. let the trust hire a mediator to give certain amounts of money to family, friends and people in need. That way you don't lose family and friends and you dont gain any new ones just for money. It would be difficult...but, I don't see any other alternative.

Mike

Sounds like our plan if we ever win. I think a lot of people daydream about winning the lottery.

First thing we would do, TELL NO ONE. Hire a lawyer to set up a trust for the two of us. I've seen once where the 'ABC Blind Trust' (actual name!) claimed the jackpot. We would pick a name as general as that one.

Hire the lawyer to give all our family members a nice amount.....and also arrange it so we would receive a check too so no one can figure out it is us that won. :laugh: Tell everyone that college is paid for now.....that would be nice.

Work - I would probably quit my job if the jackpot was large enough. I would just tell people that I got laid off again. If we travel some where, we'll say we're looking for jobs. :laugh:

I would keep this house - we love it! I would add on a sunroom. I would buy some property up in the upper penninsula of Michigan for a quiet nature retreat. Most of the money would be invested to generate a steady stream of income.

I don't know how long we could keep up the charade, but it would be fun to try!

A lot of these things (travel, place up north) I plan on doing now in my retirement, winning the lottery would allow us to retire earlier!

TrinaWants2Win
December 3rd, 2006, 3:07pm
oh the american dream!!
here is what we would do.

If we won a million or less i would have it set where we get so much a year. I think it would last longer that way.. DH would keep working. We would live as we do now but the only diffrence is we would buy a house and cars and have nicer things. I would help out the local shelter and some families I know. I would get Dallas everything he needs. Id also give away money here. Cash money!


If we won a giant jackpot. I would take cash after taxes. I would hire a attorney to handle this for us ( even if I won 1 million) and hopefully keep our names out of the news.

I would have a house built for us but we would move in to a another house while we was waiting ( we would buy this house as well) I would then have our dream house built and a small house in the back built that had everything in it that dallas could ever need or want. * I could have this built for under a million* He would live in this house when he was a adult and we would use it at a place for Pt and such while he was younger.
The other house we bought to live in while that one was built? I'd give that away in a contest to someone here a giant moc! this would not be a million dollar home but a very nice middle class home.

I would build a school for children like Dallas. this would be FREE to parents. I would hire only the BEST teachers, and nurses and such to work there. I would be very involved and work there my self. * Ive already talked to some people about this and the goverment would give us money to keep it open. But I would want to build it*

I would buy my God childrens father a very nice home as well and buy them nice things for the house.I'd make sure they all have very nice clothing and toys and the things they need. I would set up a bank account where each month they get $25 a week in allowance.


For me I would buy the best digital camera out there and go back to school to learn more about taking pictures. I would buy me a truck as well and nice clothing but thats it.

For andrianna and dallas they would have everything they need!

For christmas that year I would fly the children to New York and we would spend it there and then the week after in hawaii. We would buy our gifts there :-)

There are a few people on this site that I would surprise with some things that I know that would help them and I would get all my friends here a very nice christmas gift.

I know sounds like a lot but i am talking about if I won like over 50 million bucks! I would also set up a lot in funds that can NOT be touched until a certian time. I would do good with this money but I would also help out a lot of people. OHHH and i would send brent enough money to make everyone here green for a year!

I would give a big amount out right to givingathome a charity I hold dear to my heart. They are webbased and help people that are in need. The fonder of that charity is like my mom and I love her dearly. Now its being ran by another good friend of mine. I would defantly do something very nice for that charity.

I ofcource would donate to help research for blindness ,cp and autisim

I would also set up a account for my family where they can get a ceritan amount out each month for say 5 years.

and KB! Pack your bags you would be going to cancun lol

Dh said he would continue to work and we would put that money back in a savings account

I can dream right?? Yes this will never happen but if it did I sure would help a lot of people.. i know it sounds like a lot but I would do all that for under $8 million bucks! and if I got 50 million ( after taxes see I told you I am dreaming!!) LOL id be good to go. I know I would just help so many people and that would make me feel so good. There would be a moc here each month . I would NOT stop sweeping! but I WOULD hold Moc's to give away 50% of the wins I won and then other 50% to others , other places.

and omg i would have a walk in fridge/freezer fulllll of food at all times! lol!!!

Basically I would set aside one million bucks to help others here and around the world.

and OFCOURCE we would own a timeshare or something in Hawaii!! Dallas loved Hawaii so much

KRSchulze
December 3rd, 2006, 3:15pm
All I want is a chance to prove how it turns out just fine. :cool3:

briandnewman
December 6th, 2006, 12:06pm
Pick 3 or 4 would be the best odds but cost more a $200 pick 4 ticket (straight pick) would be 1mill prize with 1:10,000 odds. a $2000 straight bet pick 3 ticket would also get you a millions dollars with 1:1000 odds.
(some states pay out $6000 for a dollar bet so it will cost less, mine pays $5000)

xaipre
December 7th, 2006, 1:00pm
My aunt has been playing the lotto for years with no big wins (yet). She has been very upfront with the family that when (if) she wins the "big one" her only promise to everyone is that she will take the whole extended family on a nice cruise. After that, its her money, she decides.

I've hinted more than once to her that if she does win big I'd appreciate it if she could help me pay off some of my student loan debt...she says she'll consider it. :laugh:

My advise, if you really are chasing "the big one", while it's still in the dream stage let everyone close to you know what they can expect when (if) it actually happens. Then be very clear that anything above and beyond that is a GIFT and should be appreciated as such.

tangman31
December 7th, 2006, 1:18pm
I have a small family and a few close friends I would help out. Aftre that, it's mine and will be put to good use for me and my children!

The only thing I would make an immediate purchse on would be a car!!! I hav enever had a new one! I would stay in my house for a while and just hire someone to help me figure out my future!!!

I would also not claim the money under my name. People would coming out of the woodwork!!!!

Indy
December 7th, 2006, 1:29pm
I don't know what I'd do first, but it would be nice to find out!! :cool2:

inspiringmind
December 7th, 2006, 7:42pm
Since I am dreaming now:

If I won a large jackpot ($10 million or more)...well first if I did win it would be from the Colorado Lottery and I live in Wyoming. I don't know if that would help out in the publicity part. My phone number is already unlisted and private, but I think I would change it anyways. I would get it in a lump sum. I would pay off all my debts (Around $7,000) Pay off my husband's child support. Buy a house that costs around $300,000 in the county I live in, which would be in the middle of no where. I would buy a new car, but it would be under $50,000 Other then that I would put everything else into high yield CD's and savings. My husband gets SSDI so we would still get that and I open another savings account for taxes and such. Since I do live in Wyoming I know we don't have any state taxes so one less tax for me to worry about even if I took 50% taxes that would leave me about $5 million to do all the above with. Hubby would probably want to buy property and resell it or become a landlord.

SillyLilly
February 17th, 2007, 4:37pm
I just found this on the Powerball site:

CAN I REMAIN ANONYMOUS WHEN I HIT THE JACKPOT?

All but three states (DE, KS, ND) have laws that require the lottery to release the name and city of residence to anyone who asks. One state (SC) will keep your name secret if you request it, but if someone files a Freedom of Information Act request, you may have to file a plea with the judge to deny it. Photos and press conferences are always up to you. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview. A few more lotteries may work with you on setting up a trust or other partnership. You or your representative should contact the lottery for the details after you win.
http://www.powerball.com/pb_contact.asp

And I found a website that calculates taxes taken for each state you live in. Dunno if I really believe the feds only take 25% of a 50 million dollar prize tho. Can that be right?

http://www.usamega.com/powerball-jackpot.htm
http://www.usamega.com/mega-millions-jackpot.htm

kns1995
February 17th, 2007, 4:44pm
That's just plain stupidity- the way some people throw the winnings around.

Shoot, if I were ever lucky enough to win the lottery, I wouldn't tell ANYONE.
me neither

jenninshelby
February 17th, 2007, 9:03pm
Here is a story I saw about this today..

Snippet:

"City Sues Lottery Winners Over Parties

Saturday February 17, 2007 8:16 PM


PORTLAND, Ore. (AP) - A couple who won a $2.6 million lottery jackpot and spoke of helping young people fight drug addiction and alcohol abuse are facing a lawsuit alleging they held four months of parties with public sex, fights and signs of drug dealing.

The city lawsuit against Elizabeth and Samuel Howard also detailed allegations of an assault on a neighbor, slashed tires and loud music.

Samuel Howard, 54, denied the allegations.

``I just feel like I'm a victim in the whole situation,'' he said Friday.

The lawsuit was filed under a little-used chronic nuisance law aimed at ridding neighborhoods of crime-infested properties. The city wants to board the house up for six to 12 months, according to Roland Iparraguirre, a deputy city attorney.

The Howards, who accepted a lump-sum payment of $871,000 from the Oregon Lottery in October 2005, bought the house at the end of a cul-de-sac last July for $285,000, according to city records.

In the first four months after they moved in, police were called to the street 52 times, the lawsuit said. It said children are often used as lookouts and there are frequent, brief visits and multiple locks on the door, all indications of drug dealing. "

Can Read Rest here:
http://www.guardian.co.uk/worldlatest/story/0,,-6422761,00.html

granta
August 19th, 2007, 1:27am
I used to work at a liquor store with a kid who was attending Boston University - we often talked about what would you do if you ever hit the lottery - his answer was that it would not change him - he would continue attending B.U. and he would still work at the liquor store, Well. that all changed one night, when his girlfriend came running in, screaming that they had just hit the number. The jackpot that night was 26 million dollars, but there were six winners. So this college student and his girlfriend won over 4 million dolllars. Needless to say, he never showed up at the liquor store again (can't say I blaim him). They (he and his girlfriend) hired a financial advisor and were the last ones to come forward to claim their prize. I often wonder how I would react if I won such a jackpot: I'll let you know.

Captain Nemo
August 19th, 2007, 1:46am
easy easy 4 my , give dumd kid a 100grand and move out of state .
just need a measly 6 mill win to retire .
stupid kid -- wanna buy him ???

bnit2winit
August 19th, 2007, 1:51am
This is a very interesting and enlightening thread. :halo:

jesusfan1
August 19th, 2007, 1:52am
Would focus on imparting some of the best gifts to those I love- but cautiously- since I realize this sage advise is true: "money may not change you- but it will change those around you."

Hope you all will get the opportunity to see "The Ultimate Gift" coming out on DVD this Tuesday 8/21 the story is of a self made man who gave his family everything--he hoped to give his grandson the best inheritance without ruining him.
!!!! GREAT story!!!! originally the story was published as a book & was a bestseller.

http://www.theultimategift.com/book.php?cid=1987812171&cat=book

FreakDuJour
August 19th, 2007, 1:58am
Can't you remain anonymous if you win? 'Cuz that would be me. I would move wayyy up in the mountains and order everything freaking UPS. Yep.
Whoever said winning the lottery wasn't all it's cracked up to be is all fulla sheot and doesn't know squat about managing money.

R. Honey G.
August 19th, 2007, 2:06am
I have heard you can collect lottery winnings without publicity but if someone called the lottery offices, they had to give out your name. I have never won the Powerball lottery, but right after we settled my mother's estate and sold her farm, I had co-workers calling me asking for loans. More than I could ever have imagined were calling me. It was unreal. Thank goodness for Caller ID. I can only imagine the people that would come out of the woodwork if I won the lottery. Definitely would get out of town.

LastLaugh
August 19th, 2007, 7:20am
I guess it proves the brains are not needed to win the lottery just luck.
Well at least they spent it all before they died:-) that's what money is for.
Taxes were I am at are 45% if you win (FED and State Top Bracket).
So winning lump sum payment * .55 =in the bank.
It also blows my mind that nobody take the annuity payments.
Risk free, easy to budget, and likely more money. (You need to invest very smartly at a very high interest rate to make up for the principle difference and come out ahead).
Most lotto annuity's range between 8% and 9%, if you can make more than that investing (which is not difficult if you school yourself in the stock market) then take the lump sum. Because of compounding keeping expenses down the first few years and leaving that money in investments will show astonishing results later on.

Where it may be wiser to take the annuity is if you win a smaller amount and the annuity vs. the lump sum would keep you in a much smaller tax bracket.

elainmir
August 19th, 2007, 8:54am
I'm like Freak Dejour, I wouldn't tell anyone. I would quietly and secretly pay off my Mom and Dads debt and build them the cabin they've always wanted and buy mom a new vehicle.

My sister would have her own home away from her ass of a DH , 20,000$ and a new vehicle.

My bro would have his home upgraded , a new truck and 5,000$.


My inlaws I would hire a yard keeper, a maid and someone to drive them around. I'd pay to have their home upgraded as well.

I'd check into aides that could help our nephew in coping with the loss of his daughter, his blindness in one eye and I'd send him on the vacation of a lifetime.

My two DS's and SS would have college paid for and have new cars.

Then DH and I are going on the vacation of a lifetime, getting new vehicles, paying off debt.



That should cost me around 750,000 then the rest is earning me money! :gvibes:

dorght
August 19th, 2007, 8:57am
Most lotto annuity's range between 8% and 9%, if you can make more than that investing.

Your apple and oranges don't line up. The lotto's annuity is investing at 8% pre-tax. Trying to match that return with investing a lump sum payment that's already taking a 40% tax hit would require significant risk.

The reality is that people like having lump sum so they can make choices. Those choices involve spending. Given human nature the odds of having much to invest after a few years is not good.

Attorneys and investment advisiors don't benefit from managing an annuity so even their advice may be suspect

I liked one Powerball winner's announcement along the lines of - All my funds are already planned and commited, don't even bother asking.

wintermom29
August 19th, 2007, 9:03am
Winning the lotto IS ALL its cracked up to be. HOWEVER, WINNING THE LOTTERY AND BLOWING THE MONEY BECAUSE YOU CANNOT HANDLE THE MONEY AND YOU REFUSE TO APPOINT SOMEONE ELSE MORE KNOWLEDGEABLE TO DO SO IS JUST PLAIN STUPID.

This applies to all financial situations. I am a CPA and have seen this happen in families where they start to earn more money and then go deeply in debt because they don't know what they are creating.

Just use your head and hire someone if you feel insecure. This does not have to happen and in the majority of cases IT doesn't



OKAY!!!!! lol :bounce: Winning the lotto is ALL Cracked up to be I agree, This people were plain stupid not to handle there money better, Me and My husband will make our winnings last the rest of our Lives lol, Only the main family will get money, Thats it. :grin3:

Inkyskeeper
August 19th, 2007, 9:18am
Well, if anyone wins the lotto, I offer my expert services in helping you manage your millions. :smile9: Discount given to OLSers. :yesyes:

ill keep you in mind :yesyes: :gvibes:

Anewgranny
August 19th, 2007, 9:57am
If I won a lottery.....
I would more than likely pay off the bills then off to Vegas.... :goodevil:
Then, who knows? I would probably end up in an article like the people in the original post of this thread. :grin3:

Captain Nemo
November 17th, 2007, 5:23pm
i want to win 7 mill on the colorado lotto.
that will give me about $70,000 a year annuity.
after 3 years in which i catch up-a new car or pickup camper,boat,better cloths,some nicer furniture.
i modestly retire. :highfive:
$70,000 is more than enough for me.

judyv01510
November 17th, 2007, 6:05pm
Last year, one of my hubby's customers won the Powerball for $59 million. The guy and his family walked away with $24 million after the lump sum and taxes were taken out. My hubby was friendly with this customer before his BIG win and still is friendly with him. The Powerball winner has told my hubby how the past year has been for him and he and his family could'nt be happier. At the time of the BIG win they were living with his parents because he was laid off and times were tough. He is now building a $600,000 house 2 blocks away from us. He also bought a house in Cape Cod and we spent some time them this summer, because we were vacationing in the same area. He decided not to work anymore and his wife quit her job. They spent the summer in the Cape with their kids. We got a tour of their million dollar house in the Cape and of course it is gorgeous! It's not a mansion, maybe 3000 square feet, roomy, comfortable with 4 bedrooms and 3 baths. The bought 2 trucks, a family car,and a sports car. They did hire a Financial Advisor, made alot of investments in Real Estate and they are apparently earning alot of money in interest to keep them comfortable for life. This couple is being very level-headed with their fortune, and winning the Powerball could not have happened to a nicer family. They are down to earth and their kids are sweet, kind and respectful. I was very impressed with this family and I wish only the best for them in the future. :)

When a lottery advertizes a price of say $ 10 Million dollars, they are giving you $ 10 million dollars including twenty-six years of annuity interest. If you choose a lump sum payment you will receive the amount of money the lottery would have to invest in order to pay you $10 million over 26 years, usually that's around half.

Then they take out taxes, federal (and depending on where you live) state and local taxes. Let's take my locatiion for example, New York City.

Federal withholding is 28%, New York State Income Tax is 6.85% and New York City income tax is 3.68 % So that's !.4 million in taxes to the Federal Govt. $342,500 to the State of New York and $ 184,000 to the City of New York.

So if you live in New York City and you win a "$10 million" dollar prize you woud receive about $ 3,073,500. Which is not so much money when you consider that the average apartment in Manhattan is $1.5 million.


I think your friend forgot the tax. Still alot of money 8 mil. (My calc on 24mil).

I also did a quick calc at 7,000,00(cause he spent at least 1 mil already) For this to last forever at 8% appreciation per year and 4% inflation. They can not receive more then $220,000 per year after taxes at 43% (fed and state)( that would be adjusted for inflation) This would not cut into the principal ever.

TawnyNY
November 17th, 2007, 6:17pm
You know that saying "no matter where you go, there you are"? If you're bad with money before you win the lottery, you'll still be bad with it after you win. Unless you get sound financial advice and stick to it.

I'm appalled when I watch documentaries on the lives of lottery winners and how much they needlessly spend their money on mansions, expensive cars, ugly antigues and crap and then they buy their families mansions and fancy cars too.

No wonder they don't have a pot to piss in when it's over.

TawnyNY
November 17th, 2007, 6:20pm
i want to win 7 mill on the colorado lotto.
that will give me about $70,000 a year annuity.
after 3 years in which i catch up-a new car or pickup camper,boat,better cloths,some nicer furniture.
i modestly retire. :highfive:
$70,000 is more than enough for me.


Yes, it would suck to win the lottery and still have to work for a living.

:smile9:

fastfreddie1959
November 17th, 2007, 6:28pm
Travel the country-go see things that you never saw before.
No roots--spend your money on food & Gas. :highfive:
Visit everyone on OLS :highfive:
Life is just that simple.
Only have 2 bills to pay-can't go broke that fast. :eyebrow:

Captain Nemo
November 17th, 2007, 6:28pm
anyone ever notice most lottery winners are quoted saying "i'm not going to retire , i love my work."?
yeah right ,give me a break.

TawnyNY
November 17th, 2007, 6:39pm
I read a great book about what to do when you win the lottery/jackpot. It's called Infinite Financial Freedom by Rob Sanford. One of the things I remember him writing is to not just go around promising people what you will buy or do for them if you ever win the lottery (like when you daydream about it). Because what has happened is winners have been sued by the people they told they would take care of with their winnings and they didn't-so their words came back to bite them.

bwanas
November 17th, 2007, 6:42pm
I sure would like to put myself to the test!

LuckyPenny
November 17th, 2007, 7:03pm
You have to find somebody to finance your money or you will blow it.

Especially me because I am a gambler. :rofl3:

So if I would win the lottery I would:

Find an Investor
Buy a Honda Hybrid
Build a Gymnastic Gym: My big dream
Give to charities that really need it.

Lorren
November 17th, 2007, 8:13pm
I'm a big fan of Dave Ramsey, so I'd follow his plan, although it would be sped up quite a bit...

Set up an emergency fund (we could set aside a whole 6 months of expenses with a lottery win)
Pay off all debts, including the house
College for all kids and dh (currently attending)
Retirement fund (a large enough win would be large enough to live off the interest indefinitely)

Dh might quit his job or work part time while he finishes school. There's no reason for him to sit around and twiddle his thumbs all day like an old guy when he's not. When you get to the point where you don't need an income, you get to play with the extra and give it away.

Dh would get a hybrid and I'd get his car, I suppose. Or maybe a Mustang because I love them. If we won enough to have money left over after that, we could put 100% down on a new house, but not a mansion.

I would still homeschool my kids, but I guess that I wouldn't have to worry about how I was going to afford the books every year :)