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How to Invest your megamillion winner

johnNjohnN
edited October 2018 in Off-Topic
https://www.forbes.com/sites/garthfriesen/2018/10/21/how-to-invest-your-1-6-billion-mega-millions-winnings/#356cb77d578c

One in 300 million. The odds aren’t great, but your chances of winning the massive Mega Millions lottery are as good as the next person.

Comments

  • msf
    Actually, if you assume that the prize won't get split among multiple winners - a bad assumption but one that Forbes apparently makes - then the odds are excellent. $2 for a 1/300M chance of winning $687M in cash after taxes.

    Expectation value = $687M/300M = $2.29, for a palty two bucks. Now all you have to do is figure out how to arbitrage this so that you can skim off that profit.

    Maybe set up an ETF with an underlying portfolio of lottery tickets. The market is "sure" to bid up the price of that ETF's share from $2.00 to $2.29 - the "true" value of the portfolio.:-)
  • rforno
    edited October 2018
    Buy Bitcoin, of course! (not)

    Maybe donate $5M to Morningstar to build a better website.

    Definitely donate at least $5M to MFO.



  • MarkMark
    Don't forget to hold back 37-38% of your winnings to pay the taxes you'll owe at year end for moving into that upper tax bracket. Or maybe hire the tax attorneys working for the unindicted co-conspirator's of the current administration to get out of that.
  • TedTed
    @MFO Members: If I'm not mistaken federal taxes are withheld from you winnings. 25% will be withheld, and the remaining 13.6% will be taken upon filing your yearly return.
    Regards,
    Ted
  • johnNjohnN
    edited October 2018
    get trump tax man team. don't have to pay a cent for 10 yrs...lol
  • LLJB
    And hurry up and establish residence in a state that doesn't tax lottery winnings before you claim your prize.
  • Derf
    Ten states, along with Puerto Rico and the U.S. Virgin Islands, don't charge any state taxes on lottery winnings: California, Delaware, Florida, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.Jan 12, 2016

    Good luck, Derf
  • davidrmorandavidrmoran
    imagine winning such a vast amount of money and still resenting / avoiding taxes

    instead of being thrilled to pay out of your immense good luck
  • Derf
    Imagine not paying state taxes & giving that to charities of "your" choice !
    Derf
  • davidrmorandavidrmoran
    look up the common wealth and the public good
  • Simon
    edited October 2018
    Can't you take the winnings as a type of annuity over 30 years as with the Powerball? I think in most states that's the most tax efficient way of receiving lottery winnings. I'd happily settle for a pre-tax income of $33.3 million a year.
  • TedTed
    @Simon: Yes!
    Regards,
    Ted
    http://nymag.com/intelligencer/2018/10/mega-millions-if-you-win-usd1-6-billion-dont-take-the-cash.html
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