Mega Millions WWYD Options

[BlackCelicaGT94]

Hey, Washingtonians (and Oregonians, if you have Mega Millions or just want to play anyway)...

Feel free to pipe in whether you live in the NW or not

Quote:
The Mega Millions jackpot has risen to $355 million for Tuesday night's drawing.

The prize has been growing since January 12. Washington is one of 12 states in the Mega Millions game.

A winner on Tuesday would have two choices - $152 million in a lump sum or payments of nearly $10 million a year for 25 years, after taxes.


What would you do if you won Mega Millions? Lump sum, or the payments? What'd be your first major purchase that is completely indulgent, selfish and fun?


Id take lump sum cuz im impatient and I want it all now. So with 152 million my first major purchase would be to probably get myself a house and furnish it. Then id buy my parents a house.

[neKronos]

Lump sum. Swiss bank account and let 99% of my winnings collect interest for several years, live the simple life in Germany drinking amazing beer not no ****ty piss beer aka majority of US major brews, and drive the autobahn.

Mega Millions jackpots are paid either over 26 years or a single lump sum payment, called Cash Option.

When someone wins the jackpot, jackpot prize pool is invested in U.S. Treasury bonds to secure an annual payment stream called an annuity.

The jackpot prize pool, roughly half the advertised jackpot amount, is comprised of 31.8% of all of the sales leading up to a particular drawing. The rest of each sales dollar pays for non-jackpot prizes, commissions to retailers, overhead and profits to beneficiary programs.

If a jackpot winner chooses Cash Option, the U.S. Treasury bonds are sold. The winner receives all proceeds of this sale, roughly half of the advertised annuitized jackpot. Winners make this choice when they claim their jackpot prize. Winnings are taxable under either payment method.

Some states simply hold onto the cash in anticipation of their winner requesting cash, rather than buying and subsequently selling bonds. If their winner chooses the annuity, that lottery must cover any shortfall in purchasing the bonds to create the annuity payments.

"If you Win?
If you select the annuity option, which provides annual payments over a 26 year period, for every million dollars won, you will receive approximately $38,500 per year before taxes. You also have the option of a one-time, lump sum payment."

So current advertised jackpot 370 million divided by 2("roughly half") for 185 million subract the taxes (25% Fed, 3.9% State, this is for michigan tho) 46.25 million Fed, 7.125 State.

So 185(Winnings)-46.26(Fed Tax)-7.125(State Tax)=141.615 Million in hand.