Yesterday while driving to a family picnic, we passed a billboard on the highway advertising the latest PA Lotto of $100 Million. Not that I’ve played any lotteries for quite a while and can’t expect to win if I don’t play, the daydreaming potential of such a win is totally mind boggling.
Chatting about it in the car, I asked my husband, “OK, considering half of it might have to go for taxes and you invested the remainder, how much interest would that give in a year?”
His response? “A lot. I would wake up at night in a cold sweat worrying about all that money.”
Daughter’s response? “Mom, if you won that, just think, we would never have to even think about money ever again.”
I mentioned it to my nephew when we arrived at the picnic, and his response was, “Well, if you get the lump sum payment, that would be even less than that since they normally pay it in an annuity.”
Since I used to be in the banking business, I did some research after getting home last night. Apparently, the lottery will withhold 25% for Federal tax and then 6-9% for State taxes. So that takes 32 Million out of the picture. Then, if you have a 2.27% long term CD(just thinking very moderately and safely here in my day dreaming…) on the remaining 68 million, it would be approximately 1,543,600.00 per year interest.
It was advised online to get yourself an attorney and a financial advisor the instant you know you’ve won.
Years ago, in one of the branches of the bank I worked for, the employees would play the lottery jointly every week…7 employees. One day they won the 20 million dollar prize…giving each of them approximately 1.5 million each when it was all said and done. They all handed in their notice the day after them received their money. Most of their wishes for their winnings included paying off their mortgage, college tuition for their kids and grandkids, a new car and a super vacation.
That town had quite a few factories that weren’t giving out high salaries at all and after that happened, if you would go to the local store after payday on a Friday, you would see many of them buying $20 in lottery tickets, hoping somehow that lightning would strike twice in the same town.
I know, 100 Million is something totally amazing but I also think about how 1/2 million would change so many people’s lives if they would give out 200 prizes…just a thought.
Set yourself some dreaming time…
til next time…Eva