Mega Millions to $600 Million-10 Things You Should Know
- 3 years ago
Mega Millions to $600 Million 10 Things You Should Know
#MegaMillions #Lottery #Viral
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00:00 Intro
00:32 Number 10. 24% for Federal Taxes.
Of course, the advertised amounts are not what winners would end up with. Lottery officials are required to withhold 24% of big wins for federal taxes. The 24% withholding would shave about $106.2 million off before the prize reaches you. And that’s only the start of what you would pay to Uncle Sam and, typically, state funds.
01:02 Number 9. 13% to IRS & 8% State Tax.
The top marginal income tax rate is 37%. If there were no reductions to the winner’s taxable income — such as large charitable contributions — another 13%, or $57.5 million, would be due to the IRS at tax time. State taxes would be on top of that. Depending on where you live, that hit could be more than 8%.
01:34 Number 8. Seek Professional Tax Advice Before You Cash the Ticket.
You have the choice between taking the prize money all at once or having it paid out in 30 installments over 29 years in the form of an annuity. With a lump-sum payment, you must immediately pay tax on the entire amount, says Michael A. Kirsh, a financial planner in New York. With an annuity, you are taxed only as you receive the payments.
02:02 Number 7. Remain Anonymous If Your State Rules Permit It.
Once people know you're suddenly wealthy, you'll be badgered by requests for handouts from everyone from charities to long-lost friends and relatives--not to mention all the financial "experts" who will be vying for your business. So, check state rules to see whether you can dodge them all by remaining anonymous.
02:27 Number 6. Avoid Sudden Lifestyle Changes.
For the first six months after you win the lottery, don't do anything drastic, like quitting your job, buying a home in Europe, trading up for a luxury car, or building a collection of Birkin handbags. Meanwhile, set aside a fixed amount for splurges—it's only natural to want to celebrate your windfall.
02:53 Number 5. Pay Off All Your Debts.
As people say, “there is no better investment than paying off debts”. Whether it is credit card debt or a mortgage, your rate of return equals the interest rate on the loan. When you’ve paid down a dollar of debt, that’s a dollar you no longer owe.
03:14 Number 4. Assemble A Team Of Legal and Financial Advisers.
In situations like this, it's very hard to know who's trying to help you and who's trying to use you. Handpick your own lawyer, accountant, and investment advisor. In effect, the team you put together will function as your board of directors.
03:36 Number 3. Live Within A Budget.
One way to restrain yourself is to only spend income–not principal. Especially in today'
#MegaMillions #Lottery #Viral
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00:00 Intro
00:32 Number 10. 24% for Federal Taxes.
Of course, the advertised amounts are not what winners would end up with. Lottery officials are required to withhold 24% of big wins for federal taxes. The 24% withholding would shave about $106.2 million off before the prize reaches you. And that’s only the start of what you would pay to Uncle Sam and, typically, state funds.
01:02 Number 9. 13% to IRS & 8% State Tax.
The top marginal income tax rate is 37%. If there were no reductions to the winner’s taxable income — such as large charitable contributions — another 13%, or $57.5 million, would be due to the IRS at tax time. State taxes would be on top of that. Depending on where you live, that hit could be more than 8%.
01:34 Number 8. Seek Professional Tax Advice Before You Cash the Ticket.
You have the choice between taking the prize money all at once or having it paid out in 30 installments over 29 years in the form of an annuity. With a lump-sum payment, you must immediately pay tax on the entire amount, says Michael A. Kirsh, a financial planner in New York. With an annuity, you are taxed only as you receive the payments.
02:02 Number 7. Remain Anonymous If Your State Rules Permit It.
Once people know you're suddenly wealthy, you'll be badgered by requests for handouts from everyone from charities to long-lost friends and relatives--not to mention all the financial "experts" who will be vying for your business. So, check state rules to see whether you can dodge them all by remaining anonymous.
02:27 Number 6. Avoid Sudden Lifestyle Changes.
For the first six months after you win the lottery, don't do anything drastic, like quitting your job, buying a home in Europe, trading up for a luxury car, or building a collection of Birkin handbags. Meanwhile, set aside a fixed amount for splurges—it's only natural to want to celebrate your windfall.
02:53 Number 5. Pay Off All Your Debts.
As people say, “there is no better investment than paying off debts”. Whether it is credit card debt or a mortgage, your rate of return equals the interest rate on the loan. When you’ve paid down a dollar of debt, that’s a dollar you no longer owe.
03:14 Number 4. Assemble A Team Of Legal and Financial Advisers.
In situations like this, it's very hard to know who's trying to help you and who's trying to use you. Handpick your own lawyer, accountant, and investment advisor. In effect, the team you put together will function as your board of directors.
03:36 Number 3. Live Within A Budget.
One way to restrain yourself is to only spend income–not principal. Especially in today'