20-year-old claims $451 million jackpot

January 12, 2018, 05:42 PM

Balzé Halzé

As much as I would be hard pressed to turn down that amount of money at 20, I think (knowing what I know now) that I would be a thousand times better off winning that money at 35 instead.

I think most of you know what I'm talking about.

~Alan

Acta Non Verba
NRA Life Member (Patron)
God, Family, Guns, Country

Men will fight and die to protect women... because women protect everything else. ~Andrew Klavan

"Once there was only dark. If you ask me, light is winning." ~Rust Cohle

January 12, 2018, 05:42 PM

Skins2881

quote:
"I intend to take care of my family, have some fun along the way, and cement a path for financial success so that I can leave a legacy far into the future," Missler said in a statement. "I have always been one to encourage the idea of chasing dreams and I believe life is about the pursuit of passion. I am 20 years old and my journey has only just begun.

He might surprise you guys, not all 20 year olds act like 20 year olds.

Congratulations to the very lucky young man.

January 12, 2018, 05:43 PM

ASKSmith

You know what I'd do with $451 million? Two chicks at the same time.

January 12, 2018, 05:43 PM

BBMW

Usually I approve of taking the money in a lump sum. But maybe this kid should have taken the annuity payout.

January 12, 2018, 05:44 PM

FenderBender

I hope he spends it well, but I'm doubtful.

January 12, 2018, 05:46 PM

Balzé Halzé

quote:
Originally posted by BBMW:
Usually I approve of taking the money in a lump sum. But maybe this kid should have taken the annuity payout.

At 20, absolutely. Taking the annuity I would think makes much more financial sense. Maybe. I don't know. What's the annuity by the way?

~Alan

January 12, 2018, 05:51 PM

safespot

quote:
Originally posted by Balzé Halzé:
quote:
Originally posted by BBMW:
Usually I approve of taking the money in a lump sum. But maybe this kid should have taken the annuity payout.

At 20, absolutely. Taking the annuity I would think makes much more financial sense. Maybe. I don't know. What's the annuity by the way?

A bird in hand, and all that. Definitely take the lump.

January 12, 2018, 05:55 PM

Oz_Shadow

There are still ways to lose future payments. Some companies will pay you a percentage of a future payment now and they take the full payment when it gets paid out.

January 12, 2018, 06:14 PM

Bytes

quote:
Originally posted by Balzé Halzé:
As much as I would be hard pressed to turn down that amount of money at 20, I think (knowing what I know now) that I would be a thousand times better off winning that money at 35 instead.

I think most of you know what I'm talking about.

I sure do know what you're talking about. No way at twenty I could responsibly handle that amount of money. I really hope this kid gets some good financial advice. If he does he, and his children, and his grand children, and his great grand children can live like princes (not kings).

January 12, 2018, 06:21 PM

Balzé Halzé

quote:
Originally posted by Bytes:
quote:
Originally posted by Balzé Halzé:
As much as I would be hard pressed to turn down that amount of money at 20, I think (knowing what I know now) that I would be a thousand times better off winning that money at 35 instead.

I think most of you know what I'm talking about.

I sure do know what you're talking about. No way at twenty I could responsibly handle that amount of money. I really hope this kid gets some good financial advice. If he does he, and his children, and his grand children, and his great grand children can live like princes (not kings).

Not only that, but in regards to the direction and experiences in my life due to my time at the Academy and with my career...those are things that have shaped me into who I am today. I believe that I'd be a much different person now if I had come into hundreds of millions of dollars at age 20. And not for the better.

~Alan

January 12, 2018, 06:23 PM

architect

quote:
Originally posted by FenderBender:
I hope he spends it well, but I'm doubtful.

Hookers and blow? What's the problem?

January 12, 2018, 06:26 PM

JALLEN

Did you read the story?

He had coffee with his dad the next morning, his lawyer set up an entity to handle everything. He had a feeling he would win.

Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown

January 12, 2018, 06:27 PM

nighthawk

Bet he gets more attention from women now for some reason.

January 12, 2018, 06:36 PM

c1steve

Now he just has to learn which ones are scamming him.

Well I'm a-runnin' down the road try'n to loosen my load
I've got seven women on my mind
Four that want to own me, two that want to stone me
One says she's a friend of mine.

January 12, 2018, 06:40 PM

Rey HRH

quote:
Originally posted by Balzé Halzé:
quote:
Originally posted by BBMW:
Usually I approve of taking the money in a lump sum. But maybe this kid should have taken the annuity payout.

At 20, absolutely. Taking the annuity I would think makes much more financial sense. Maybe. I don't know. What's the annuity by the way?

The annuity starts at $7.2 million, increasing by 5% each year for 29 years for a total of $451 million.

Based on your post, I ran the analysis by modeling investing in $281.2 million against the annuity cash flow and the rate of return is only 3%. From a pure financial sense over a 29 year period, he can do better by investing the $281.2 million elsewhere like the stock market, recreational marijuana, or hookers and blow.

"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.

January 12, 2018, 06:42 PM

Paten

Here's the jackpot analysis for the mega millions this past weekend. It shows what the annuity payments would have been.

Mega Millions Annuity Jackpot Analysis for Florida (Jan. 5, 2018 Drawing)

January 12, 2018, 06:45 PM

Balzé Halzé

quote:
Originally posted by Rey HRH:
quote:
Originally posted by Balzé Halzé:
quote:
Originally posted by BBMW:
Usually I approve of taking the money in a lump sum. But maybe this kid should have taken the annuity payout.

At 20, absolutely. Taking the annuity I would think makes much more financial sense. Maybe. I don't know. What's the annuity by the way?

The annuity starts at $7.2 million, increasing by 5% each year for 29 years for a total of $451 million.

Based on your post, I ran the analysis by modeling investing in $281.2 million against the annuity cash flow and the rate of return is only 3%. From a pure financial sense over a 29 year period, he can do better by investing the $281.2 million elsewhere like the stock market, recreational marijuana, or hookers and blow.

Got it. Lump sum definitely makes better sense.

And screw everything I said earlier about experiences and my career and all that nonsense. Hookers and blow for the win!

~Alan

January 12, 2018, 07:04 PM

kkina

He can always annuitize all or part of the lump sum any time he wants through a private company. In fact he would probably get a better internal rate of return commercially.

If it were me, I'd do both. Take the lump sum, but take a part of it and buy a single premium immediate annuity. So even if I turn into an unrestrained spendthrift (I doubt it, but you never know) and lose the liquid part, I still get a guaranteed monthly check that I can only spend as fast as they send it.

(Yes, there are companies that will take your annuity and give you a single structured settlement in exchange for future installments, but let's assume I'm smart enough to stay away from those.)