The Rancher and $232 Million

[MJ DeMarco]

Rancher wins $232 Powerball ...

The interesting thing in the article is after taxes and lump sum distribution (vs over 20 years) his total take is $83 MILLION. Close to 2/3rd's was wiped out by taxes and present value calculation. Wow!

SD rancher wins $232 million jackpot - Yahoo! News

And ladies, he is single! (And a nice looking chap to boot!)

 

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[Roman]

Wow I feel as if that guy deserved all of that, but ill get there on my own thank you very much

 

[CarrieW]

I thought the interesting thing in the article is the woman from florida running the sudden money institute...

great if she really does "help" these people...

sounds like a great job eh...

 

[Salinger]

Close to 2/3rd's was wiped out by taxes and present value calculation. Wow!

Yup. I ran the calculation. Twenty years of annual payments totaling X, discounted to the present at 8% equals roughly 49% of X. I don't know what discount rate the lotteries use, but I think the cash payout is usually 40-48% of the annuity total. Taxes take about a third of what's left, leaving about 33% of the stated prize amount.

I'd still be happy to get it though. I don't play lotteries more than a couple of times a year. I figure the odds of someone giving me a winning lottery ticket are very similar to the odds of winning with one I've bought.

________________________________
I'm creating a new lottery. The prize is $1,000,000 and I'm only selling 10,000 tickets at $1 apiece. Fantastic odds! The only catch is that the payout is in the year 2109. If you want the prize today, discounted at 8%, you'll receive $455.
If you elect to take it in 100 years (yes it is transferable), I'll only need to invest about $7,600 at 5% for my grandson to pay you off. I'll keep the other $2400 for management fees. Sign up now!

 

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[imcmillionaire]

Man, they took a lot of money from this guy. It went from 200 million to 84 millions.
That's considered rape in my dictionary. But non the less, its a nice lump sum.
I hope he helps a lot of people with that money.

 

[Runum]

Man, they took a lot of money from this guy. It went from 200 million to 84 millions.
That's considered rape in my dictionary. But non the less, its a nice lump sum.
I hope he helps a lot of people with that money.

What did you learn from the story? How are those lessons going to affect your life? Are you even listening?:fryingpan: