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Jaybee1200
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Quote :
"
South Dakota rancher wins $232 million jackpot

PIERRE, S.D. – If this were a movie, nobody would believe it: A rancher struggling to eke out a living in one of the poorest corners of America claimed one of the biggest undivided jackpots in U.S. lottery history Friday — $232 million — after buying the ticket in a town by the name of Winner.

Neal Wanless, 23, said he intends to buy himself more room to roam and repay the kindness other townspeople have shown his family.

"I want to thank the Lord for giving me this opportunity and blessing me with this great fortune. I will not squander it," he promised, wearing a big black cowboy hat and a huge grin.

Wanless, who is single, lives with his mother and father on the family's 320-acre ranch near Mission, where they raise cattle, sheep and horses. They don't own a phone, a mobile home of theirs was repossessed last year, and records show they have fallen $3,552 behind in their property taxes.

Wanless bought $15 worth of tickets to the May 27 30-state Powerball drawing at a convenience store in Winner during a trip to buy livestock feed. He will take home a lump sum of $88.5 million after taxes are deducted.

The Wanless home stands in a grove of trees in Todd County, home to the Rosebud Sioux Tribe. It was the nation's seventh-poorest county in 2007, according to the Census Bureau.

Dave Assman, who owns farmland next to the Wanless ranch, said he is happy the family won't have to worry about money any more. "They've been real short on finances for a long time," Assman said. "They are from real meager means, I guess you'd say."

"I hope they enjoy their money," said county assessor Cathy Vrbka, a family friend. "They work hard, backbreaking hard work."

Wanless' father, Arlen Wanless, 54, has made a living in recent years mainly by buying and selling scrap metal, but his fortunes dropped with the price of iron, said Dan Clark, an auctioneer from Winner and a friend of more than two decades.

The younger Wanless told lottery officials that he spent the last week working on the ranch and that he intends to continue that lifestyle, albeit on a larger piece of land. According to lottery officials, he recently told his horse, Eleanor, "It'd be nice if we go for a longer ride than usual on a bigger ranch of our own."

"My family has been helped by the community, and I intend to repay that help many times over," Wanless said. He gave no details.

An Oregon family turned $40 worth of tickets into $340 million Powerball prize in 2005, and at least four other winners collected larger jackpots than Wanless' prize.

The store where Wanless bought the winning ticket will get a $50,000 bonus. Sharon Ulmer, manager of the store, said she is glad the Wanless family won.

"From what I understand they don't have a lot, so the money definitely went to a good place," Ulmer said. "I know it went to a good home. They can use it.""


[Edited on June 5, 2009 at 11:31 PM. Reason : d]

6/5/2009 11:30:38 PM

sarijoul
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why do people take the lump sums? it's like they are begging to splurge all their money on dumb investments and frivolous things. spread that shit out over thirty years and live WELL (and get more of your money).

6/5/2009 11:33:30 PM

stevedude
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http://www.thewolfweb.com/message_topic.aspx?topic=568039

6/5/2009 11:36:00 PM

Jaybee1200
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yeah, but I made this one, who the hell is Scuba Steve?

6/5/2009 11:36:55 PM

wolfpack2105
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Scuba Sam's son?

6/5/2009 11:44:41 PM

ussjbroli
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^^^^ um, no. you almost always take the lump sum. even just putting it in a bank and collecting standard savings interest % he'd be getting around 1.5 million a year in perpetuity w/o ever touching the principal. taking the annuity is just dumb.

[Edited on June 5, 2009 at 11:47 PM. Reason : .]

6/5/2009 11:46:48 PM

sarijoul
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i'm curious about the math on this one.

say he did a 30 year payout. doing a little quick math, that would be 644,000 per month for thirty years.

6/5/2009 11:58:42 PM

stephen_tl
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lump sum is the best option always.

6/6/2009 12:21:21 AM

sarijoul
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i don't know. you get significantly less money with the lump sum. is it significant enough to negate the amount you might make on that money from interest/investments?

6/6/2009 12:27:25 AM

theDuke866
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yeah, probably so most of the time.

Gotta consider that future value/opportunity cost.

6/6/2009 12:35:59 AM

billytalent
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lock this duplicate shit

6/6/2009 12:36:55 AM

ussjbroli
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^^ yes, even with safe investments you can make a lot more that you would through an annuity. yeah, you get more for 30 years per annum but in that same time frame even with a simple savings account if you spend 500,000 a year and put away around 500,000 (after taxes from your interest earned at approx 2% of 80 mil) you'll have 95 million in cash sitting in a bank account and that's not accounting for the fact that your interest will pay more each year as your account grows so probably a little over 100million.

6/6/2009 12:48:27 AM

skokiaan
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use present value to compare the two cash flow streams

they ahve a lottery example, too:

http://tkcs-collins.com/truman/cashflow/cashflow.shtml

[Edited on June 6, 2009 at 12:51 AM. Reason : .]

6/6/2009 12:50:04 AM

theDuke866
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^^ yes, compound interest rules.

6/6/2009 12:50:57 AM

pmcassel
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Quote :
"i don't know. you get significantly less money with the lump sum."


lets take a second to sit back and reflect on how retarded you are

6/6/2009 1:01:00 AM

BubbleBobble
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Quote :
"why do people take the lump sums? it's like they are begging to splurge all their money on dumb investments and frivolous things."


the lesser-funded Lovell...

6/6/2009 1:03:56 AM

AndyMac
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It's probably better for most lotto winners (that is, the people who invest significant amounts of their income into lotto tickets) to take the annuity.

Who knows what kind of retarded stuff they buy, but I've heard a lot of lotto winners are broke again within like 10 years.

6/6/2009 1:05:12 AM

ddf583
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I sincerely hope that this doesn't ruin their lives.

6/6/2009 1:06:06 AM

not dnl
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technically really shrewd investors would say take the lump sum prolly

6/6/2009 1:06:47 AM

supercalo
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Quote :
"why do people take the lump sums? it's like they are begging to splurge all their money on dumb investments and frivolous things"


But how many times does one win the lottery though.

Having a bunch of dough sitting over you could actually be lame. People you know would change. You'll get a lot of extra 'friends' over the years. You're life and pursuit of happiness could actually go south, way south depending on how you cope with the money.

Thats why if I ever win it, I'm gonna blow it. Thats right, blow it. Figure a year and half later I'll be just as poor as when I first bought the ticket. That would be my aim. Afterall, greed is the root of all evil.

6/6/2009 1:09:09 AM

AndyMac
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^^ yeah, but all I'm saying is people who invest in the lottery aren't normally shrewd investors.

Lump sum doesn't seem like that much less money. Tax on lotto winnings is like 50%, total jackpot was 232 million, so annuity payouts would probably total like 115 million, and he gets almost 90 million in a lump sum.

Taking inflation into account, that's really not all that much less.

[Edited on June 6, 2009 at 1:09 AM. Reason : ]

6/6/2009 1:09:45 AM

Kurtis636
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Yes, taking the lump sum is the correct course. Even very average investing will outpace inflation. Money now is always worth more than money later for several reasons, most of which have already been mentioned.

6/6/2009 1:11:14 AM

paerabol
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i would rather take the annuity just because i know how i spend money...i'd blow that lump some on a lot of cool shit or take some risky investments or something, it's not something i'm proud of. I'd rather have the security of knowing i'll be getting a nice paycheck for 30 years no matter what happens. then i can save and invest as i please

6/6/2009 2:45:34 AM

Jaybee1200
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do you realize how much 88.5 million is??? they had a special on a guy who won $40 million, his interest alone was $10,000 a day. Unless you buy a sports team or something crazy there is no way you could run through that

6/6/2009 2:48:51 AM

paerabol
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3.6 million a year? who gets that kind of interest in a usable account?

6/6/2009 2:52:59 AM

Jaybee1200
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no idea what he had set up and where, but thats what it came out to

6/6/2009 2:58:04 AM

Kurtis636
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I can believe somebody was making 10k a day in interest if he had 40 million. I'm sure it would be pretty difficult to find a 9% money market account or the like, but I bet you can easily manage 12% on the 30-35 million you invest and keep the other 5 million liquid in a combination of money market, savings, and checking (not that I would ever do that if I won the lottery, having that much in uninvested liquid seems crazy to me).

Even if this rancher put all 88.5 million of it into CDs at 5% he would be making over 4 million a year in interest alone. Like someone said before, unless you had absolutely no sense at all and just decided to buy a ferrari for every day of the year it would be damned near impossible to go broke once you have that kind of money.

6/6/2009 3:02:00 AM

AndyMac
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If he was making 9% interest on it, he probably lost most of that money last fall.

6/6/2009 7:36:03 AM

xplosivo
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Correct me if I am wrong, but isn't the lump sum payout in a lottery prize the amount that the lottery would use to purchase the yearly payout annuity? Why wouldn't you take the lump sum? Unless you are so retarded with money that you simply can not trust yourself you would be better off.

Plus with the annuity prize, you are getting escalating payments. So for that last jackpot, the annuity was only paying like 1.8M per year. You didn't get above 2M until year 5 and so on until you were getting around 8M per year in the final years.

6/6/2009 7:50:01 AM

theDuke866
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^ that's probably because they're accounting for inflation

6/6/2009 8:39:23 AM

theDuke866
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^ that's probably because they're accounting for inflation

6/6/2009 8:39:23 AM

Demathis1
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Not sure if it is true or not, but someone also told me that the annuity cannot be devised, inherited, or transferred. If you happen to die before the 30 years is up, the money escheats to the state.

6/6/2009 9:00:23 AM

wdprice3
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dangit. i need that money.

6/6/2009 9:09:21 AM

jwb9984
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6/6/2009 9:35:33 AM

HaLo
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Quote :
"WHAT HAPPENS IF AN ANNUITY PRIZE WINNER DIES?

First there will be a funeral. Then the estate will handle the lottery prize. A lottery annuity prize is just like any other asset. You can pass any remaining annuity payments on to your heirs or to anyone else. The Powerball game will even cash out an annuity prize for an estate. This may make it easier for the estate to distribute the prize. It also may be necessary to cash out the annuity to pay Federal estate taxes. We will sell some or all of the securities at competitive bid or will even just transfer the securities to the estate. We do not charge a fee of any kind. I think that this misunderstanding may come from the response that the prize "goes to the Estate" and some people hear "goes to the State.""


Quote :
"WHY HAS THE CASH JACKPOT GONE DOWN?

Actually, it is the annuity jackpot that has gone UP. Most people assume that we start with the annuity, but we really start with the cash jackpot. In the Powerball game, thirty cents of every dollar sold goes into the cash jackpot pool. The difference between the cash jackpot and the annuity jackpot depends on how much we can make in interest earnings. The more interest that we can make, the higher the annuity jackpot - and the lower the cash percentage. In times of high interest rates, the annuity prize will go UP and the difference between the two jackpot amounts will increase. It is not that we have reduced the cash; but only that we have been able to increase the annuity prize. All of the cash jackpot and the interest earned is paid to the winner for the annuity.

Rising interest rates increase the annuity jackpot (reduces the cash percentage), but a change in the payment method of the Powerball annuity prize is the big reason for the increased interest earnings to build the annuity prize. The annuity is now paid out as a graduated annuity. Each payment is 4% higher than the previous year's payment to help keep up with inflation. The annuity prize used to be paid out in equal payments. Persons who elect to take the annuity prize do so because they don’t want to worry about investing the money. They want to maintain their lifestyle for the term of the annuity. In fact, our past practice of equal installments did not really meet the needs of these winners. Going from an income of say, $50,000 a year to say, $1 million per year, sounds great (and I hear that it is), but ten years later, the winner’s income is still $1 million a year and the price of luxury cars and yachts has gone up. In twenty years, the fact that the winner is living on a “fixed income” really starts to sink in. If you took the same cash jackpot amount to a professional financial advisor, they would certainly recommend investing in a graduated annuity so that your “real” income would stay at the same level every year. The Powerball annuity jackpot now does that.

IS THE CASH AMOUNT THE JACKPOT AMOUNT AFTER TAXES?

No. When we advertise a prize of $100 million paid over 29 years (30 payments), we actually have less than $50 million in cash. When someone wins the jackpot and wants cash, we give them all of the cash in the jackpot prize pool. If the winner wants the annuity, we invest the $50 million in cash to fund the annuity payments. The winner gets the cash plus the interest earned. When you see an estimated jackpot annuity prize, we are estimating both sales and what the market's prices on certain securities will be. The annuity jackpot amount and the cash jackpot amount that we announce are always estimates until sales are final and, for the annuity jackpot, until we take bids on the purchase of securities.

Federal and State Income tax apply to whatever income you actually receive in a given tax year, whether it is wages or lottery prizes. If you take the cash amount (say $50 million), then you pay income tax on $50 million). If you take the annuity (say $100 million), then you pay income tax on the money you actually receive each year. Just like your wages, a withholding amount is required to be taken out immediately. The lottery will send you a W2-G form and you figure your actual tax at tax time.

CASH VS. ANNUITY - MY FINANCIAL EXPERT SAYS HE CAN EARN MORE THAN THE ANNUITY WITH THIS CASH.

Maybe. We have seen that even financial experts forget about taxes. From the example above, if the winner takes the cash, then the winner will have to pay state and federal taxes on the cash amount. The amount of income tax will vary, but it will likely be somewhere close to half the cash amount. With $50 million as a cash prize, a cash winner will have less than $30 million to invest. We don’t pay any income tax and so start out by investing the whole $50 million. You should note that current tax rates are pretty low right now and may go higher in the future. Federal rates for 2006 are at 35% (and Powerball winners end up in that maximum tax bracket).

Sometimes financial experts also do not understand how the annuity prize is paid out. We do not hold the prize for 29 years and then pay it all out. The Powerball annuity prize is an annuity stream. The winner gets the first payment immediately and then an annual payment for the next 29 years. And this is guaranteed. It is possible to beat this income stream, but not without risk. Deciding how to take the prize can be a complicated decision, but it is an important one that deserves your attention. You have 60 days, after you claim your ticket, to make the decision. Get lots of advice and ask these kinds of questions. "


from http://www.powerball.com/pb_contact.asp

[Edited on June 6, 2009 at 10:12 AM. Reason : .]

6/6/2009 10:11:44 AM

JCASHFAN
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6/6/2009 11:37:38 AM

nastoute
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whenever there's a lottery thread I post this

rotten.com Lottery Winners & Tips for the Latest Instant Millionaire

http://www.rotten.com/library/culture/lottery-winners/

6/6/2009 11:54:58 AM

beatsunc
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Quote :
"someone also told me that the annuity cannot be devised, inherited, or transferred. If you happen to die before the 30 years is up, the money escheats to the state.

"


they may have been thinking about social security.

6/6/2009 12:10:27 PM

qntmfred
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wait, what makes this guy a goofball?

6/6/2009 12:16:56 PM

ThePeter
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I, too, was wondering "wait, what makes this guy a goofball?". I figure because he has a neighbor named Dave Assman, since only goofballs have neighbors with weird last names.

6/6/2009 2:53:13 PM

Fermat
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Quote :
"wait, what makes this guy a goofball?"


considering this is tww, probably the part where he divulged he believes in God, or the part where it became obvious he did manual labor

6/6/2009 3:05:44 PM

roddy
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Rumor is Fox is already in talks for a reality show....possible show name "Millionaire Cowboy Lookin For Love"......instead of giving out a rose it will be cowgirl hat.....



[Edited on June 6, 2009 at 3:12 PM. Reason : w]

6/6/2009 3:09:09 PM

Fermat
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if you just made that up, good job. because that totally sounds like something i'd buy

6/6/2009 3:14:37 PM

Scuba Steve
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this guy has a lot of trouble coming his way

6/6/2009 3:20:06 PM

Fermat
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6/6/2009 3:26:30 PM

Scuba Steve
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nah, he got 99 problems but a bitch ain't one

6/6/2009 3:55:33 PM

ScubaSteve
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nah, he got 99 problems but a bitch ain't one

6/6/2009 4:01:28 PM

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