Author Topic: If I win the lottery ...  (Read 15800 times)

Offline skyguy918

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Re: If I win the lottery ...
« Reply #120 on: January 09, 2016, 08:01:26 PM »
Why?
The thing I linked to yesterday explained it well.
Eta: reddit here.
Warning: a bit of profanity.
Relevant section: This is from a random guy on the internet, so cmiiw.
Not a very good explanation, but he gets some parts right. The liquidity issue is somewhat significant - meaning if in fact you decide that the 2 options are truly worth the same amount to you mathematically, you only have full access in one of the scenarios.

The real reason is because the annuity is not necessarily competitive. You could easily argue that this type of annuity is not a good investment generally, but even if it was, you very well might be able to take the cash and buy a slightly better stream of income (or buy the same stream for less and hold the difference) if you preferred that method of payout. The states don't handle the annuities themselves, as that poster mentioned. They put these policies up for bid to the insurance companies who have annuity businesses. His 4.5% is actually totally off. Based on the $900 sum of annuity payments and $558 cash value numbers quoted on the Powerball website right now, the implicit rate of return on the annuity is 2.97% (assuming no built in fees or loads). Because it's not a completely open market, you're likely to do better actually shopping around for that very same annuity.

Offline Achas Veachas

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Re: If I win the lottery ...
« Reply #121 on: January 09, 2016, 08:09:28 PM »
Not a very good explanation, but he gets some parts right. The liquidity issue is somewhat significant - meaning if in fact you decide that the 2 options are truly worth the same amount to you mathematically, you only have full access in one of the scenarios.

Which could actually be considered a good thing. At least you know you won't end up like the majority of winners who end up broke after a year....
Curiosity made the cat smarter.

Offline skyguy918

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Re: If I win the lottery ...
« Reply #122 on: January 09, 2016, 08:39:52 PM »
Which could actually be considered a good thing. At least you know you won't end up like the majority of winners who end up broke after a year....
If you're even having this discussion, you're probably not like that majority of winners.

Online churnbabychurn

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Re: If I win the lottery ...
« Reply #123 on: January 09, 2016, 08:46:00 PM »
Give 100 million each to a handful of good asset managers.

Keep 100 mill in the mattress (literally/or couple of bank accounts) and call it a day.

The whole point is not to worry.

Oh, and hire someone to handle maaser and to manage the foundation.

Did I miss anything?


Offline Achas Veachas

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Re: If I win the lottery ...
« Reply #124 on: January 09, 2016, 08:47:55 PM »
If you're even having this discussion, you're probably not like that majority of winners.
I've never met any of these "majority of winners" but I always understood the statistics to mean that while most people have plans to be responsible with the money, actually winning makes you go crazy.

Of course I may be wrong and my view of humanity is hopelessly optimistic...
Curiosity made the cat smarter.

Online zale

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Re: If I win the lottery ...
« Reply #125 on: January 09, 2016, 08:53:53 PM »
I've never met any of these "majority of winners" but I always understood the statistics to mean that while most people have plans to be responsible with the money, actually winning makes you go crazy.

Of course I may be wrong and my view of humanity is hopelessly optimistic...

There aren't any stats on the "majority of winners". Certain winners have blown their winnings and some of them are documented. Most reasonable, middle-class and higher individuals would probably be able to "handle" that kind of money.

The squanderers are the ones who have lived on welfare in a trailer park or tiny apartment with their entire extended family. Like this retard: http://www.dailymail.co.uk/news/article-3381697/Mother-four-won-188million-Powerball-prize-year-ago-spent-21MILLION-bailing-loser-heroin-trafficking-boyfriend-jail-three-times.html

Offline elit

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Re: If I win the lottery ...
« Reply #126 on: January 09, 2016, 08:57:34 PM »


my view of humanity is hopelessly optimistic...

That.

Offline Achas Veachas

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Re: If I win the lottery ...
« Reply #127 on: January 09, 2016, 09:08:33 PM »

That.
This video seems to suggest that you're right...

http://youtu.be/EbOLqVSr5OY

Warning: mature content (or is that immature?)
Curiosity made the cat smarter.

Offline Something Fishy

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Re: If I win the lottery ...
« Reply #128 on: January 09, 2016, 09:41:00 PM »
If it hit 2 billion would it be worth it to buy all 292 million posiible numbers to guarantee a win ?

This is gonna take a while, but it's not looking good so far :P:


Offline skyguy918

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Re: If I win the lottery ...
« Reply #129 on: January 09, 2016, 10:38:56 PM »

Offline good sam

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Re: If I win the lottery ...
« Reply #130 on: January 09, 2016, 10:54:46 PM »
Give 100 million each to a handful of good asset managers.

Keep 100 mill in the mattress (literally/or couple of bank accounts) and call it a day.

The whole point is not to worry.

Oh, and hire someone to handle maaser and to manage the foundation.

Did I miss anything?
Maaser? I would think about 70-80% should go to charity.
If you don't care why would you comment?
HT: DMYD

Offline Brian93

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Re: If I win the lottery ...
« Reply #131 on: January 09, 2016, 10:55:29 PM »
Maaser? I would think about 70-80% should go to charity.
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I'm not who you think I am.

Online grodnoking

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Re: If I win the lottery ...
« Reply #133 on: January 09, 2016, 10:57:07 PM »
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Gr"a holds must do a chomesh
I'm not who you think I am.

Offline good sam

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Re: If I win the lottery ...
« Reply #134 on: January 09, 2016, 10:59:00 PM »
אל יבזבז יותר מחומש
I can't imagine that would apply here.
If you don't care why would you comment?
HT: DMYD