There is an article out today about an unemployed guy buying an $8.00 lottery ticket and winning $1 million. Good for him! He got a check for $670K after taxes were withdrawn.
Now, I seem to remember that they just raised the tax rates, and a quick check on Yahoo finance shows that anything over $450K is taxed at nearly 40%. That means that he'll owe $340K to the US government alone, although only $330K was withheld.
Now, with any State income or sales tax, I'm pretty sure he's going to already be below $640K.
He said he tithed 10%. Assuming that was $67K (ten percent of his take home), he's now down to $570K.
He bought two jeeps: $520K. And now he's made an offer on a house. For convenience sake, I'll estimate $250K for that.
He just won the lottery, and he has no job. He has a paid-for house and $270K in the bank. I will guess he has a lot of credit card debt, so I'm going to arbitrarily put his bankroll at $220K right now.
How long do you think it will be before he's borrowing on his house to pay bills? I'm guessing no more than 2 years. After all, this guy immediately started spending after he got some green in his palm.
Lottery Winner
January 16th, 2013 at 08:01 am
January 16th, 2013 at 01:36 pm 1358343379
January 16th, 2013 at 02:48 pm 1358347710
January 17th, 2013 at 12:20 am 1358382016
January 17th, 2013 at 04:07 am 1358395665