What would you do with $90M?

[Zeoanne]

well open up a few Gay runaway's Ranches!!

 

Provide a safe haven and at the same time - teach them to protect their haven and raise some cattle and grow some veggies

 

while part of the place serves as a bed and breakfast where the proceeds go towards up-keep and the kids education.

 

I also agree in part with hh5 but with a bit of a difference. Yes, it would be great to have a FEW ranches for runaways, battered, abandoned, and as KJames says, throwaways but there is an urgent need of centers in the cities in every state. Most of these kids are scared to death and don't know which way to go. They feel totally rejected by the world and if it was up to me, I'd collect every single one of them and give them what they so desperate need....Love. Whenever I read or listen on the news of a gay child being battered I just sit and cry. Being a mother with two Bi sons and a Lesbian daughter, I simply don't understand how can parents out there be so cruel to their own children. How can their love change overnight? That child is the same person as he/she was the day before. So, yeah, I would do what ever I could to help them out. Of course, I would also help my sister, niece, parents and my own kids and also do some travelling, I'd like to take my kids to the places I visited in Europe, etc. Plus, I want a 1950's VW Buswagon with 23 windows, covered in peace signs and peace flowers and a bed inside, like this one... http://tinyurl.com/ngawvu hope link works!

 

WL Wrote.... It is not widely remembered until it happens, but most lottery winners go bankrupt due to poor tax planning afterward in the US.

 

The reason is multi-state taxation. Powerball, Mega millions, Mega bucks, and other lotteries with over 10 million are usually set up by multiple states each having jurisdiction to tax your income gain as the lottery may go. Get a good tax accountant to re-allocate your winnings before you even cash the check. I might even advise placing the winnings within a trust that could act as a buffer between you and the states. Additional stuff like charitable deductions and exemptions can be played with.

 

If you do not heed my warning and spend without consulting a good tax accountant or financial planner, you will probably be paying 60-70 million of the winnings in taxes. and he is soooo right about it too!!!!

Edited June 30, 2009 by Rush

[Graeme]

If any of you guys win, I will help you structure the money. It is not widely remembered until it happens, but most lottery winners go bankrupt due to poor tax planning afterward in the US.

 

The reason is multi-state taxation. Powerball, Mega millions, Mega bucks, and other lotteries with over 10 million are usually set up by multiple states each having jurisdiction to tax your income gain as the lottery may go. Get a good tax accountant to re-allocate your winnings before you even cash the check. I might even advise placing the winnings within a trust that could act as a buffer between you and the states. Additional stuff like charitable deductions and exemptions can be played with.

 

If you do not heed my warning and spend without consulting a good tax accountant or financial planner, you will probably be paying 60-70 million of the winnings in taxes.

I was aware of this, and MikeL gave an example above where, out of a $400M prize, he would end up with $65M (though that did include giving away half of the $400M to charity for tax reasons). It's why I made a point of saying that lottery prizes in Australia are not taxed.

 

The prize money ended up being AUD$106M. The main prize in the lotteries here is defined as being a percentage of the total pool, which is based on how many tickets are sold, though they are allowed to advertise a guaranteed minimum 1st division prize. Because there was so much interest, the prize pool ended up being larger than expected, and so the 1st division prize was increased to $106M.

 

Alas, I didn't win. Two people, one in Queensland and one in South Australia, have shared that prize, winning $53M each. Still a lot of money....

[W_L]

I was aware of this, and MikeL gave an example above where, out of a $400M prize, he would end up with $65M (though that did include giving away half of the $400M to charity for tax reasons). It's why I made a point of saying that lottery prizes in Australia are not taxed.

 

The prize money ended up being AUD$106M. The main prize in the lotteries here is defined as being a percentage of the total pool, which is based on how many tickets are sold, though they are allowed to advertise a guaranteed minimum 1st division prize. Because there was so much interest, the prize pool ended up being larger than expected, and so the 1st division prize was increased to $106M.

 

Alas, I didn't win. Two people, one in Queensland and one in South Australia, have shared that prize, winning $53M each. Still a lot of money....

 

Actually in the US, one thing many people fail to do when cashing a lottery ticket is to structure the transaction before you cash it. It is true that first off 30%-35% of the sum received will be withheld under "state and federal law" in the US, but if you can structure your deductions and transfer the winnings in good form, there are ways to work with it.

 

I should have been more specific, when looking for a tax accountant make sure they have a background in state and local taxation. For instance, I have some experiences and studied under Massachusetts, California, Delaware, Pennsylvania, Texas (Why must Texans be so odd? Anyone doing business in Texas know what I mean), and New York state taxes (Not to be confused with NY City taxes). The reason is jurisdiction's provide special deductions and exemptions for taxing purposes. Thus, try getting someone, who knows state taxes to structure your lottery winnings in application to each jurisdiction. People sometimes think tax accountants and financial planners are interchangeable, but we do have specialties that work in different situations.

 

As for the Aussie lottery, if you are an American, don't think you will not be taxed just cause they don't tax you. The provisions of international taxation for non-national winners of foreign lotteries are based off similar levels to transfers in property between nations. There is one plus side that is going to fade soon; in the past, if you had won let's say 106 million Australian dollars, then you might be able to apply for lower long capital tax gain treatment, i.e. 15% capped.

 

Under President Obama's new budget, he is reverting the rate back up to 20% for both individuals and corporations. Still lesser than average ordinary gains.

[KJames]

One of the largest lottery prizes here in the states was $386M...the lump sum payment option, which was taken, was approximately $193M.

 

After Federal taxes at the time, the remainder was approximately $135M, it was tax free in the state it was won in, due to no income tax in the state. Assuming they won something like that in today's economy, with the same net to the winner's pocket, that $135M will garner more than $2.43M in interest per year. The $2.43M figure is based on the "simple" calculation--most savings, T-bills, and such garner compounded interest, which would increase that figure somewhat. The state of the winner does not tax, so the earnings are not taxed, only the federal unearned income tax applies to the interest, fairly hefty based on the amount, but still leaves a tidy sum to live on.

 

I'd still like to hit around $500M in the MegaLotto in California...

[DragonFire]

Here in Europe the largest prize is the Euromillions lottery, and the biggest it's allowed to get is £100 million. If it's not won, then it's broken up into whoever is closest; IE: 5 main numbers and 1 bonus ball. But unlike the US, the prize fund is not taxable and is given out as one lump sum.

 

As regards what I would do with that kind of money, well aside from giving some to family and friends...I'd move to a sunnier climate first, then think about setting a small business to keep me occupied. I just couldn't sit at home all day counting all the winnings....would get bored very quickly.

[JamesSavik]

At first I thought the title of the thread said what would you do for $90M and thought to myself: ugh, they really don't want to know.Come to think of it, you probably don't want to know what I'd do for 5$. Me love you longtime sailor!

 

What to do with it AFTER getting it?

 

I'd do several things. First I would buy some land in New Mexico or Colorado- or maybe in Australia the Southern sky is very cool. I would want the land at a nice elevation and a desert climate to build myself a nice observatory.

 

Then I would buy a couple of supercomputers and sell time on them to pay for the upkeep.

 

Once I was up and running with a staff, I'd spend a lot of time writing.

[W_L]

At first I thought the title of the thread said what would you do for $90M and thought to myself: ugh, they really don't want to know.Come to think of it, you probably don't want to know what I'd do for 5$. Me love you longtime sailor!

 

What to do with it AFTER getting it?

 

I'd do several things. First I would buy some land in New Mexico or Colorado- or maybe in Australia the Southern sky is very cool. I would want the land at a nice elevation and a desert climate to build myself a nice observatory.

 

Then I would buy a couple of supercomputers and sell time on them to pay for the upkeep.

 

Once I was up and running with a staff, I'd spend a lot of time writing.

 

Darn I thought you were going to search for intelligent life in the Universe with that set up!

[LongGone]

I'd buy a nice house in London and move there. And hire a full time butler and maid. Then I'd find a job because I'd go crazy at home.

[Dolores Esteban]

I'd keep it secret.