Quote:
Originally Posted by Socks
I imagine most of these powerball winners go to get some legal and tax advice before coming forward, and yet just about everyone always takes the lump sum. That means that their counsel is telling them to take the lump sum.
Why would they recommend that?
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I can make this answer easy and simple for you
$148,000,000 taken over 25 years vs 53,000,000 taken today
http://investor.gov/tools/calculator...est-calculator
Plug in the $53,000,000
Then put in 4.5% interest paid out 12 times, or once a month. This is the approx payout of a fund such as FCAVX that pays you State and Federally tax free. Yes, NO TAXES ON THE INTEREST GAINED.
Now run that out 25 years and you get:
$162,908,353.99
This fund is ULTRA conservative. So ALWAYS take the lump sum. Stay ULTRA conservative and have approx $2.5 Million Tax Free Income per year and NEVER touch your principle.
And now you know why these people ALL takes the lump sum when being advised by some of the best lawyers and accountants on the planet.