Say you won $2,000,000

[BDBoop]

Let's say I win a scratch-off card lottery game here in the Empire State. A lump sum 2 million dollar winner doesn't get 2 million. But let's put that aside and say that he does.

So, I dutifully collect my check for $2,000,000.00 .

And. being very aware of the powers and duties of the IRS and State Tax collectors, and local governments' claim to their shares, let's just say I put a full million aside to cover taxes.

I'm down to one million.

Now, I pay off mortgage and other debts and establish funds to pay for the kids' college(s) etc.

Now, I'm down to say MAYBE 500 thousand.

I invest half to generate some income for a little sumpin on a yearly basis. 250 grand is unlikely to yield me 25K a year, but maybe I invest very well and succeed that far.

So, cool. I'm now down to 250K of the original 2 million. Charitable contribution time. Maybe I "invest" it in something like a trust to give to the group or groups of my choice.

Figure 125K gone, but earning enough to fund those charitable organizations 10 to 12 k per year. Cool.

Of course, now I'm down to my own last 125k. I figure a trip or two. Maybe some redecorating (no maybe about it. I'm married.)

Maybe a solar powered car?

nah.

My (added later) was post eff-all taxes, $2,000,000, free and clear.

 

[Liability]

Let's say I win a scratch-off card lottery game here in the Empire State. A lump sum 2 million dollar winner doesn't get 2 million. But let's put that aside and say that he does.

So, I dutifully collect my check for $2,000,000.00 .

And. being very aware of the powers and duties of the IRS and State Tax collectors, and local governments' claim to their shares, let's just say I put a full million aside to cover taxes.

I'm down to one million.

Now, I pay off mortgage and other debts and establish funds to pay for the kids' college(s) etc.

Now, I'm down to say MAYBE 500 thousand.

I invest half to generate some income for a little sumpin on a yearly basis. 250 grand is unlikely to yield me 25K a year, but maybe I invest very well and succeed that far.

So, cool. I'm now down to 250K of the original 2 million. Charitable contribution time. Maybe I "invest" it in something like a trust to give to the group or groups of my choice.

Figure 125K gone, but earning enough to fund those charitable organizations 10 to 12 k per year. Cool.

Of course, now I'm down to my own last 125k. I figure a trip or two. Maybe some redecorating (no maybe about it. I'm married.)

Maybe a solar powered car?

nah.

My (added later) was post eff-all taxes, $2,000,000, free and clear.

That could work --

if you don't mind going to prison.

Or, you could just make your pie-in-the-sky premise, "what if you won FOUR million!"

That would take us down to about 2 million post taxes.

 

[Mr.Nick]

Would you keep working, or quit?

I'd quit, and go to school.

However, my first reaction was "I'd invest, and keep working."

$2,000,000 just isn't that much money.

I'd buy 20-30 houses and rent them out....

The government wouldn't let me tho......

 

[AVG-JOE]

If it was a lottery and you decided to take it in annual annuities for 29 years it would come to $34,500K per million, per year pre-tax and you'd collect the entire amount over the next 29 years. That means 2 million would give you $69K per year pre-tax. If you took it in one lump sum you would probably only get 1/3 at most, not 1/2 as most people think.

I was working on the assumption that the $2 M was the winning check after the taxes were paid.

Let's keep it simple, eh?

Nope, sorry. If you take the lump sum the first half comes off the top before you receive it is for federal taxes then you add local and state. If you take the annuity payout you (or your heirs) get the entire 2 mil payed out over 29 years and you only pay taxes on what you collect each year and don't "protect" via tax shelters which means the tax burden will only be about 35% overall.
The biggest problem people run into is they think 2 mil is a lot of money and go crazy with it, before they know it they're broke and looking for work again plus selling off whatever they can to make ends meet.

Whoa Brother! We're going to have to agree to disagree on this one.

Obviously you have your lottery fantasy and I have mine. Have fun with the paperwork in your fantasy.

 

[AVG-JOE]

Yeah good luck finding a 5% annual return that you can depend on, folks.

I'll bet anyone $1,000,000 (with all taxes paid) that with $1,000,000 to put in the account, finding an annualized 5% return on investment wouldn't be so tough.

 

[AVG-JOE]

Let's say I win a scratch-off card lottery game here in the Empire State. A lump sum 2 million dollar winner doesn't get 2 million. But let's put that aside and say that he does.

So, I dutifully collect my check for $2,000,000.00 .

And. being very aware of the powers and duties of the IRS and State Tax collectors, and local governments' claim to their shares, let's just say I put a full million aside to cover taxes.

I'm down to one million.

Now, I pay off mortgage and other debts and establish funds to pay for the kids' college(s) etc.

Now, I'm down to say MAYBE 500 thousand.

I invest half to generate some income for a little sumpin on a yearly basis. 250 grand is unlikely to yield me 25K a year, but maybe I invest very well and succeed that far.

So, cool. I'm now down to 250K of the original 2 million. Charitable contribution time. Maybe I "invest" it in something like a trust to give to the group or groups of my choice.

Figure 125K gone, but earning enough to fund those charitable organizations 10 to 12 k per year. Cool.

Of course, now I'm down to my own last 125k. I figure a trip or two. Maybe some redecorating (no maybe about it. I'm married.)

Maybe a solar powered car?

nah.

My (added later) was post eff-all taxes, $2,000,000, free and clear.

That could work --

if you don't mind going to prison.

Or, you could just make your pie-in-the-sky premise, "what if you won FOUR million!"

That would take us down to about 2 million post taxes.

It's a FANTASY thread. The opening poster gets to set the rules on a fantasy thread.

Ass-U-Me you won enough to put $2M in your pocket and play the game, sans the bullshit.

 

[Ringel05]

I was working on the assumption that the $2 M was the winning check after the taxes were paid.

Let's keep it simple, eh?

Nope, sorry. If you take the lump sum the first half comes off the top before you receive it is for federal taxes then you add local and state. If you take the annuity payout you (or your heirs) get the entire 2 mil payed out over 29 years and you only pay taxes on what you collect each year and don't "protect" via tax shelters which means the tax burden will only be about 35% overall.
The biggest problem people run into is they think 2 mil is a lot of money and go crazy with it, before they know it they're broke and looking for work again plus selling off whatever they can to make ends meet.

Whoa Brother! We're going to have to agree to disagree on this one.

Obviously you have your lottery fantasy and I have mine. Have fun with the paperwork in your fantasy.

Okay but my fantasy's based on two books about winning the lottery (one's a what to do if you win book) and a documentary series on lottery winners.

 

[007]

I'd go to Vegas and play one hand of Black Jack with all of it.

 

[Dabs]

I wouldn't go back to school for anything, I'm too damned old for that.
Doubtful I'd quit working either.......money doesn't last forever, and it sure as hell doesn't grow on trees, and so I would most likely give some to my children, give some to the cancer charities I am most favored to...and then.....tuck the rest away.
This is of course....fun money....fantasy money.......so I could maybe buy myself a little sumpin sumpin special, since it's all in fun

 

[BDBoop]

I wouldn't go back to school for anything, I'm too damned old for that.
Doubtful I'd quit working either.......money doesn't last forever, and it sure as hell doesn't grow on trees, and so I would most likely give some to my children, give some to the cancer charities I am most favored to...and then.....tuck the rest away.
This is of course....fun money....fantasy money.......so I could maybe buy myself a little sumpin sumpin special, since it's all in fun

I'm 53, and I would definitely go back to school. How old is too old?

 

[Dabs]

I wouldn't go back to school for anything, I'm too damned old for that.
Doubtful I'd quit working either.......money doesn't last forever, and it sure as hell doesn't grow on trees, and so I would most likely give some to my children, give some to the cancer charities I am most favored to...and then.....tuck the rest away.
This is of course....fun money....fantasy money.......so I could maybe buy myself a little sumpin sumpin special, since it's all in fun

I'm 53, and I would definitely go back to school. How old is too old?

Each person has their own idea of what age is 'too old'........for me, I personally feel, that I am just too old to go back into college and start something anew.
I just don't have that gumption.
And I'm 49.........
When I talk to other people who are my age, I think they are young still.....but, when I think of me being at the age of 49, right now....I feel I am old.
But that's just me and my weird ways

 

[RadiomanATL]

Would you keep working, or quit?

I'd quit, and go to school.

However, my first reaction was "I'd invest, and keep working."

$2,000,000 just isn't that much money.

Keep working and invest it.

But I would quit my second job.

 

[BDBoop]

I wouldn't go back to school for anything, I'm too damned old for that.
Doubtful I'd quit working either.......money doesn't last forever, and it sure as hell doesn't grow on trees, and so I would most likely give some to my children, give some to the cancer charities I am most favored to...and then.....tuck the rest away.
This is of course....fun money....fantasy money.......so I could maybe buy myself a little sumpin sumpin special, since it's all in fun

I'm 53, and I would definitely go back to school. How old is too old?

Each person has their own idea of what age is 'too old'........for me, I personally feel, that I am just too old to go back into college and start something anew.
I just don't have that gumption.
And I'm 49.........
When I talk to other people who are my age, I think they are young still.....but, when I think of me being at the age of 49, right now....I feel I am old.
But that's just me and my weird ways

I'd likely do online courses at Rasmussen. I'm not good with crowds.

 

[midcan5]

Allow me to play devil's advocate. In a world in which most live on two dollars a day, Americans need two million and then say they'll still work or go to school. What the hell is wrong with our values today that we think mostly of ourselves, I did not notice a single reply that they would now tutor or just simply enjoy life with family and friends? Instead everyone calculates some imaginary scenario in which happiness is around some corner. I admit I haven't tutored in a long time, work is a pita but I hope I can do it again when life slows down. That is another American messed up value we are too busy.

'Happiness (Reconsidered)'

"Happiness
Is a clean bill of health from the doctor,
And the kids shouldn't move back home for
more than a year,
And not being audited, overdrawn, in Wilkes-Barre,
in a lawsuit or in traction.

Happiness
Is falling asleep without Valium,
And having two breasts to put in my brassiere,
And not (yet) needing to get my blood pressure lowered,
my eyelids raised or a second opinion.

And on Saturday nights
When my husband and I have rented
Something with Fred Astaire for the VCR,
And we're sitting around in our robes discussing,
The state of the world, back exercises, our Keoghs,
And whether to fix the transmission or buy a new car,
And we're eating a pint of rum-raisin ice cream
on the grounds that
Tomorrow we're starting a diet of fish, fruit and grain,
And my dad's in Miami dating a very nice widow,
And no one we love is in serious trouble or pain,
And our bringing-up-baby days are far behind us,
But our senior-citizen days have not begun,
It's not what I called happiness
When I was twenty-one,
But it's turning out to be
What happiness is.

Judith Viorst

 

[BDBoop]

That's not actually what I saw in this thread. At all, actually. I didn't see anybody saying they'd be happy if they had that money.

In fact, my one 'happy' in this thread would be being able to spend time with my grandbabies, if I lived close enough to do so.

 

[techieny]

I'd buy a big house where we both could live...

 

[BDBoop]

I'd buy a big house where we both could live...

Love that song.

"If I was a sculptor, but then again, no."

 

[California Girl]

[ame=http://www.youtube.com/watch?v=qMxX-QOV9tI]Jessie J - Price Tag ft. B.o.B. - YouTube[/ame]

 

[Zander]

I already won $2,000,000. I "won" it by investing my life energy into my business. Anyone can become wealthy and successful in this country. All it requires is discipline, courage, hard work, and time. A bit of good luck doesn't hurt either~!


PS - I would never buy a lottery ticket. It's a tax on the stupid.

 

[Dabs]

I'd buy a big house where we both could live...

Yes! Great!
I've been wanting to move