Powerball Jackpot $900 Million USD

[overcoil]

How the scam worked, sort of.
https://www.washingtonpost.com/news/...mepage%2Fstory

[AW335TT]

Originally Posted by gonzo

Number generator scam. Powerball and Mega Millions are old fashioned balls. Some claim the balls are rigged...because they're pissed they've never won.
Seeing an old old lady, who wouldn't survive winning much less knowing what to do, holding about 10 slips / 5 per slip, was kind of sad actually. She's probably rubbing her rabbits foot and filling out new slips right now.

Not sure if the balls are rigged or not but there are definitely numbers that show up more than others. I got bored and decided to look back at past winning numbers. Numbers like 49, 54, 28, 25, 2, 59, show up considerably more than numbers like 46, 40, 56, 21, 43 etc.

10,17,22,9,18,15,11,19,7,27,35,33,25 make up over 80% of the powerball numbers.. Some more common than others.

Over 50% of the winning numbers had at least 1 number between 1-9 with 2 being the most common of those followed by 7 and 9.

I know it's still a huge guessing game but not all numbers are equal.

I went back 2 years but didn't include the draws after they added more numbers in November.

[ASBSECU E93]

Originally Posted by AW335TT

A few states don't have state tax on powerball.

https://www.usamega.com/powerball-jackpot.asp

I didn't realize federal tax on winnings was only 25%

Some sates may not have enough to pay the full lump sum amount either....

Would SUCK to win a BILLION and then be told, here's half in cash and half in a IOU....

[AW335TT]

Originally Posted by ASBSECU E93

Some sates may not have enough to pay the full lump sum amount either....

Would SUCK to win a BILLION and then be told, here's half in cash and half in a IOU....

I personally wouldn't take the lump sum. The annual payments would be more than enough for me. Money comes from the state or the company that holds the lottery?

How is the money guaranteed if you choose the 30 year plan?

[Gabreigns]

Originally Posted by AW335TT

I personally wouldn't take the lump sum. The annual payments would be more than enough for me. Money comes from the state or the company that holds the lottery?

How is the money guaranteed if you choose the 30 year plan?

Lump sum would be the way to go. Who knows if you get hit by a bus or if the airbags fail to deploy. You can at least pass it on to the family.

[bbbbmw]

Originally Posted by ASBSECU E93

Form a group of advisors (CPA, Attorney specializing in trusts, Financial Advisor), claim the winnings in a Trust.

Begin to purchase R/E assets that are leased to national credit tenants under long term lease (think Lowes, Wal-Mart, Publix, etc)....

Invest considerable amounts in tax exempt bonds structured with staggered maturities that throw off tax free income for future years.

Pay off all current debt.

Buy large tracts of rural land.

Disappear after collecting the winnings.........

Pay off all current debt. Then make payments on what's left til that's gone too...

[ASBSECU E93]

Originally Posted by AW335TT

I personally wouldn't take the lump sum. The annual payments would be more than enough for me. Money comes from the state or the company that holds the lottery?

How is the money guaranteed if you choose the 30 year plan?

The money collected from sales for the jackpot are either paid in the lump sum or over time.

If you choose the annuity payment plan, the money is held and paid over 30 years by the lottery commission to the recipient. Since the money for that particular jackpot has been collected during the run up period - it will not 'run out'.

[AW335TT]

Originally Posted by Gabreigns

Lump sum would be the way to go. Who knows if you get hit by a bus or if the airbags fail to deploy. You can at least pass it on to the family.

Where would you even keep $600,000,000 safely?

FDIC insures 200k per social, per bank.

I think the annual payments in California start from like 14million for the first year and go up to 60million for the last year. Unless you die within a couple of years of winning.. There would still be a lot of cash to go around if something were to happen to you.

People who take the lump sum are the ones who end up waisting all their money.. Obviously in this particular case that'll be pretty hard to do lol.. I think I'd manage to spend it all tho.

Is the decision final or can you change it a couple years down the line?

[AW335TT]

Originally Posted by ASBSECU E93

The money collected from sales for the jackpot are either paid in the lump sum or over time.

If you choose the annuity payment plan, the money is held and paid over 30 years by the lottery commission to the recipient. Since the money for that particular jackpot has been collected during the run up period - it will not 'run out'.

So why would a state have issues paying the lump some if the money is already there?

[ASBSECU E93]

Originally Posted by AW335TT

So why would a state have issues paying the lump some if the money is already there?

Google Illinois Lottery payment issues.

Also - to your FDIC comment....

If a bank fails - the customer would lose their cash on deposit beyond the $250,000 level IF the FDIC could not find another bank to acquire and assume the deposits.

This rarely happens now - however in the early years of the FDIC, this was common.

For example - When Wachovia (former FUNB) was about 6 hours from being the largest bank failure in US history, Wells Fargo acquired and assumed 100% of the deposits for all former Wachovia customers.

If Wachovia had been assumed under the FDIC without a buyer for the assets, the FDIC would pay up to the insurance limit and then all depositors above the limit are SOL....

EDIT: Little nugget of knowledge for the group...If every bank failed in the US at the same time - the FDIC insurance fund has only .15 to .25 on the dollar to cover the $250,000 requirement...so the $250,000 'insurance' for every customer is not really guaranteed...

[AW335TT]

Originally Posted by ASBSECU E93

Google Illinois Lottery payment issues.

Also - to your FDIC comment....

If a bank fails - the customer would lose their cash on deposit beyond the $250,000 level IF the FDIC could not find another bank to acquire and assume the deposits.

This rarely happens now - however in the early years of the FDIC, this was common.

For example - When Wachovia (former FUNB) was about 6 hours from being the largest bank failure in US history, Wells Fargo acquired and assumed 100% of the deposits for all former Wachovia customers.

If Wachovia had been assumed under the FDIC without a buyer for the assets, the FDIC would pay up to the insurance limit and then all depositors above the limit are SOL....

EDIT: Little nugget of knowledge for the group...If every bank failed in the US at the same time - the FDIC insurance fund has only .15 to .25 on the dollar to cover the $250,000 requirement...so the $250,000 'insurance' for every customer is not really guaranteed...

I meant like the economy collapsing, not just 1 bank going down.. But I get what you're saying.

[ASBSECU E93]

Originally Posted by AW335TT

I meant like the economy collapsing, not just 1 bank going down.. But I get what you're saying.

Are you referring to the value of the dollar compared to foreign currency..?

[M_Six]

I don't feel too badly for this person, but I know their pain. My ex and I missed $7mil once by one sticking digit (Powerball was 23, we had 22). We got the $50k booby prize, which came to $36,500 after taxes. This person made out much better with a cool million, which probably ended up in the $700k range.

http://www.bostonglobe.com/metro/201...XoK/story.html

[Biorin]

Originally Posted by AW335TT

Where would you even keep $600,000,000 safely?

FDIC insures 200k per social, per bank.

I think the annual payments in California start from like 14million for the first year and go up to 60million for the last year. Unless you die within a couple of years of winning.. There would still be a lot of cash to go around if something were to happen to you.

People who take the lump sum are the ones who end up waisting all their money.. Obviously in this particular case that'll be pretty hard to do lol.. I think I'd manage to spend it all tho.

Is the decision final or can you change it a couple years down the line?

You don't keep it all in the bank. Real estate, equities, bonds, etc.

[ASBSECU E93]

Originally Posted by Biorin

You don't keep it all in the bank. Real estate, equities, bonds, etc.

Agree 100%.

I have a customer that buys parking garages and laundromats in major cities....Why you ask??

He charges $15.00 by the hour for parking during the day and will turn each space on average 5 times a day. He also leases spaces for overnight tenants of renters and condo owners...

Make $$ while people are sleeping

[NemesisX]

Originally Posted by ASBSECU E93

Agree 100%.

I have a customer that buys parking garages and laundromats in major cities....Why you ask??

He charges $15.00 by the hour for parking during the day and will turn each space on average 5 times a day. He also leases spaces for overnight tenants of renters and condo owners...

Make $$ while people are sleeping

How can I buy a parking garage (serious question)? It's always seemed like a low maintenance investment to me but I wouldn't know where to start.

Paradoxically, if parking garages are such great investments no one in their right mind would be willing to sell me one in the first place unless they were really strapped for liquid cash.

[MrPrena]

Originally Posted by ASBSECU E93

With that level of $$ overnight....you become your own Equity/Hedge Firm overnight

With about $50 Mil invested in the right R/E assets - You are set for $3 to $5 Mil in annualized NOI

Yup. Diversify the F out of the $$$. 500+ mil after tax in the checking account is such a waste.

[ASBSECU E93]

Originally Posted by NemesisX

How can I buy a parking garage (serious question)? It's always seemed like a low maintenance investment to me but I wouldn't know where to start.

Paradoxically, if parking garages are such great investments no one in their right mind would be willing to sell me one in the first place unless they were really strapped for liquid cash.

...you are correct. Many/Most are owned via municipality so, ownership is almost impossible. Unless, you are a large scale R/E developer and/or partner with a large equity firm to build a tower in the center of downtown and condo out the garage that is built under or adjacent to the structure.

This would allow you to own (fee simple) the actual garage and then sell out the units above/beside the garage. Condo declarations (same principal as residential condo units) provide a measure of control over the parking structure...basically, you can control all access to/from the street for vital downtown parking.

Additionally - the structure is built to support future vertical growth for hotel towers. This is where 'real' income is generated. The 'Air Rights' dictate all future development above your earning asset, while you maintain complete control over the parking = establish a lease arrangement with the hotel/mixed use/condo association.....$$$$$ for many years to come.

My customer has done a couple investments like this and acquired a couple of sour projects from cities where a developer had filed bankruptcy when the R/E market crashed and basically turned them back over...it takes REAL $$ and considerable knowledge to pull these type projects back out of the ditch. Something like winning a Billion jackpot can do....

[gonzo]

Originally Posted by AW335TT

Where would you even keep $600,000,000 safely?

Www.cdars.com

Insured spread.

Those claiming you'd be your good ol boy self if you won...
Sure, that's fine, but you'd have to somewhere else far far away.

Nothing would be the same ever again. Good? Bad?
If a person wins and wants to stay pretty much the same...burn the winning ticket.

[DSB335d]

I wonder how the government is going to spend their cut.

[M_Six]

Originally Posted by DSB335d

I wonder how the government is going to spend their cut.

Poorly, no doubt.

[ASBSECU E93]

Originally Posted by M_Six

Poorly, no doubt.

Yep...