I Just Won $206 Million in the Lottery!

The jackpot in the multi-state Mega Millions lottery is about $206 million, so I just bought a ticket. I always like to be prepared, but I’m not sure how to manage the huge windfall I am expecting to claim on Monday.

Lets say that I elect to take my prize as a lump sum rather than an annuity, and that after taxes it boils down to a check for $40 million. It can’t be a good idea to deposit it all in my checking account, since the FDIC only insures deposits up to $10,000. Should I spread it around in things like CDs and bonds? Should I turn it over to a financial advisor?

I expect that the publicity around my win will cause me to be deluged with offers from all sorts of money managers, not to mention scam artists, hucksters, and long-lost cousins. That’s why I’m asking for guidance in advance. What does one do with such a large amount of money to keep it safe, and hopefully make it grow?

Don’t worry, I’ll manage it for you.

Before you tell anyone you’ve got the winning ticket, contact a large, well-established financial advice firm. Let them guide you through the process. Diversification is probably what they will recommend, depending on your age, family status, and just what you want out of life.

Meh. The Powerball is up to $300 million. That’s where the smart money is.

The lump-sum payout is about 50% and taxes will eat around 35% of that, so you should wind up with something more like $65-70 million, not $40 million. FDIC insures deposits to $100k, not $10k.

I would find a really good attorney and talk to a large, well-established financial firm (“Hi, I’d like to speak to Charles Schwab in person please, I have $70M to invest”) about money managers. There are people who specialize in helping handle windfall profits.

My personal perspective - I have an old family friend who was a tax attorney for years and is now does investment work for a living, I’d start by talking to her for recommendations. I’d also give my mutual fund firm (Vanguard) a call.

I suggest you conact your Insurance agent and buy a large annuity, say $10Mil. They are hard to cash out so even if you blow everything you will have an income of $50K a month for life.

If you go through Consumers Reports or a similar non-profit org you can get an annuity with a slightly smaller pay-out but a portion of what you give them will be tax deductable and damn will you need tax deductions.

In any case you are insured up to $100,000 not $10,000 and it is quite safe to leave more than that in your account for a short time, while you are arranging things and disbursing it out. Of course you will choose an interest bearing account, like a NOW account.
http://en.wikipedia.org/wiki/Fdic

Then buy a house, paid in full. Now you have two solid investments.

You do realize that you are flying all of us in for the dopefest to end all dopefests. I hear that Aruba is nice this time of year.
:smiley:

The lump sum payout on Mega Millions $206 is $120.5

The Lump payout on Powerball $300 million, is $140.3 million.

The Highest federal tax rate is 35%. YMW(ill)V on local taxes

Just so we have more than ballpark to work with

You’ll only get half the amount you think, because the other half will be split with my winning numbers.

Seriously – check my out in the SDMB search. I don’t buy lottery tickets. Except today – not less than an hour ago I bought the first lottery tickets in my life.

Heehee…

You suckers.

I went to Milwaukee, WI (Powerball state) for work on Thursday and, being here in Megamillionville, Illinois, I’m expecting a combined $500,000,000 weekend.

During my research of what to do immediately after my win, I found this piece:
http://moneycentral.msn.com/content/Banking/P43409.asp
Seems to cover the basics.

You people are nuts, expecting to win such big jackpots. I, on the other hand, am a sure bet to win the $52 million Florida lottery.

I bought 2 tickets, so how can I possibly lose?

Don’t listen to these suckers. Clearly, the best investment is to buy 70 million more lottery tickets.

Each bank account is insured for 100K; so open one account for anson0001, one for anson0002, … one for anson2995.

Treasury bills are about the safest bet you can make if you want to park your cash for the short term (1 year) while you figure out what to do with the windfall. It’s all guaranteed by the U.S government, which in over 200 years has never defaulted on its debt.

Anyway you can do a “shout out” to your buddies at the SDMB at your press conference? :smiley: Might attract too much attention to us though.

That is a good reason to buy a Straight Dope T-shirt now, so you can wear it at the press conference.

hehe. Sorry to burst your bubble, but I bought 4 tickets. :smiley:

Sorry to burst all of your bubbles, but I didn’t buy a ticket. Thus, there will be a rollover and I will win a truly abscene amount of money next week.

FDIC insures up to $100,000 per account. You just hafta go around to a lotta banks and open $100,00 accounts. Plus keep some cash handy.

FWIW, it turns out I didn’t even win so much as to break even on my sure-thing investment. What’s wrong with the strategy that I pursued? What need I do differently?