20-year-old claims $451 million jackpot

January 12, 2018, 07:30 PM

Black92LX

quote:
Originally posted by 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.)

I have seen the JG Wentworth commercials and the like that give a single payout.
I figured one would get ripped but I had no clue it was as bad as it was.
I met a young lady that received a 1.3 MILLION malpractice/wrongful death settlement when her mother passed during a botched surgery.
She went and did one of these single payout things and received 128,000

January 12, 2018, 07:35 PM

rscalzo

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

It would take 451 million ????? Wow, maybe you should post a photo.

January 12, 2018, 07:45 PM

olfuzzy

He's also lucky to live in a state with no income tax. Just think how much N.Y. would take.

January 12, 2018, 07:59 PM

Woodman

He bought five tickets. I bought zero. I think I see cause and effect.

Bought one for the PowerBall the following night but didn't match the numbers.

My only advice to the kid:

January 12, 2018, 08:09 PM

Balzé Halzé

quote:
Originally posted by rscalzo:
quote:
You know what I'd do with $451 million? Two chicks at the same time.

It would take 451 million ????? Wow, maybe you should post a photo.

Dude, your avatar is enormous.

~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, 08:54 PM

ASKSmith

quote:
Originally posted by Balzé Halzé:
quote:
Originally posted by rscalzo:
quote:
You know what I'd do with $451 million? Two chicks at the same time.

It would take 451 million ????? Wow, maybe you should post a photo.

Dude, your avatar is enormous.

Ever see the movie Office Space?

“Know what I’d do with a million dollars? Two chicks at the same time.”

“It would cost a million dollars???”

“Fuck yeah. The type of chicks that would double up on a dude like me.”

January 12, 2018, 09:27 PM

ElToro

I heard on the news he took the 280m lump. If I had been handed that kind of loot at age 20 I’d be dead.

January 12, 2018, 11:49 PM

BBMW

I fully agree that on the basis of rational financial analysis, the lump sum makes more sense. But human nature being what it is, handing a 20 YO guy $280+ million, well, what could possibly go wrong?

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.

January 12, 2018, 11:51 PM

BBMW

You could always sign over the annuity.

quote:
Originally posted by 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.)

January 13, 2018, 12:04 AM

Copefree

His Faceboook page is public and people have been commenting on it all day.

On Friday, after he realized he hit the jackpot, he posted “Oh. My. God.”

He posted a statement tonight acknowledging everyone and saying thank you.

January 13, 2018, 12:12 AM

RichardC

I'd take the money, Toombs.

January 13, 2018, 03:23 AM

downtownv

I am very happy for this young man. For some reason I think he will do good things with the money. Better than the jackasses In W Virginia http://newsfeed.time.com/2012/...drew-jack-whittaker/ and the Derby wearing dude in NYC who showed up to collect his prize with his girlfriend and then his wife appeared.
http://www.fox5ny.com/good-day...n-how-to-lose-it-all

January 13, 2018, 10:04 AM

sigspecops

If you voluntarily make it public that you won that kind of money you're an idiot, plain and simple. It'll be a miracle if he's not broke by age 30.

January 13, 2018, 10:36 AM

whanson_wi

I bet his family tree is miraculously sprouting new and interesting branches as we speak.

January 13, 2018, 10:40 AM

Sigmanic

quote:
Originally posted by sigspecops:
If you voluntarily make it public that you won that kind of money you're an idiot, plain and simple. It'll be a miracle if he's not broke by age 30.

I'd have to agree. Plenty of people ready to feed off of people like this. I'd even be concerned with kidnapping possibilities.

January 13, 2018, 10:46 AM

MNSIG

Most lotteries require public disclosure. It’s in the rules for claiming the prize.

January 13, 2018, 10:49 AM

Balzé Halzé

quote:
Originally posted by MNSIG:
Most lotteries require public disclosure. It’s in the rules for claiming the prize.

Yeah, but this kid threw it up on Facebook the second he found out he won.

~Alan

January 13, 2018, 10:49 AM

radioman

I was surprised to learn that a 20 YO can play.

January 13, 2018, 10:56 AM

Balzé Halzé

quote:
Originally posted by radioman:
I was surprised to learn that a 20 YO can play.

I think most states have an 18 year old age limit. Some are 21.

Interestingly I ran across an article this morning about a 17 year old girl who won a lottery in Britain. 1.8 million pounds. She's now suing because she said winning nearly ruined her life because she was too young to be responsible with the money...or something like that. She wants the age limit changed to 18.

~Alan