Powerball Winner, Watch That Fiscal Cliff
You'll want to take the lump sum, say advisers
By John Johnson, Newser Staff
Posted Nov 27, 2012 6:18 PM CST
A customer fills in his numbers on a Powerball ticket.   (AP Photo/Pat Sullivan)

(Newser) – Tomorrow's Powerball payoff is now $500 million, reports AP, and it should end up even higher given how fast tickets are selling. Should you find yourself an instant member of the 1%, MarketWatch has some advice: Take the lump sum, which currently would be about $327 million. That's not typically the suggested path, but the threat of the fiscal cliff—and expiring tax breaks—makes things different this year. In the long run, the lump sum "could save you millions in taxes," says one adviser in the story.

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Showing 3 of 32 comments
RAD45
Nov 28, 2012 9:28 AM CST
Some interesting financial advice posted here -- most, NOT from certified licensed successful financial planners. But one item seems missing: putting Powerball winnings into an investment or similar vehicle allowing you to only pay CAPITAL GAINS taxes -- just like the Mitt. After the initial Federal and State tax hit, you've got a LOT of money left. There's no reason to keep paying out taxes you don't legally have to. Assuming you wouldn't run for President, do like Bain Capital, move most of it overseas into fund where you pay only U.S. capital gains taxes and move to a State without an income tax. You would live very well, your kids get a leg up in life, and whatever charities or deserving folks you help get some and the principal keeps growing! Of course, the law of financial dynasties applies: one generation make$ it, the second grow$ it, the third generation $pend$ it.
carbonated_turtle
Nov 28, 2012 8:18 AM CST
Fiscal Cliff! Fiscal Cliff! Fiscal Cliff! Shut up with the fiscal cliff already! This term is more overused than WMDs was in 2003.
myflap.blow
Nov 28, 2012 3:29 AM CST
heres an idea, have a Federal Powerball for 1B every week. Think about it.